Rundown #35: OpenAI’s GPT-4.5, Google Pay’s New Fees, AMEX & Alipay’s Cross-Border Deal, UPI Lite's Upgrades, and Revolut’s Valuation Boom

After last week's break due to a busy schedule and a panel on 2025 payment strategies at the NextGen Payments & RegTech Forum , welcome back to this week’s Five Point Friday roundup! Let’s dive into the latest in payments, tech, and digital finance.

OpenAI launched GPT-4.5, offering faster responses and improved reasoning at a premium price—$75 to $180 per million tokens. The move has sparked debate, as rivals like Claude 3.7 and Gemini 2 Pro offer similar features for less.

谷歌 Pay now charges a 0.5% to 1% convenience fee for credit and debit card payments on utilities. This follows competitors like Paytm and PhonePe , raising questions about the future of digital payments. American Express cardholders can now link to 支付宝 , enabling seamless payments across China, enhancing cross-border transactions for global travelers.

In India, the National Payments Corporation Of India (NPCI) ’s ‘Transfer Out’ feature for UPI Lite lets users withdraw funds back to their bank accounts, with higher limits for wallet and transactions, offering more flexibility and security.

Revolut is considering a secondary share sale as its valuation hits $60 billion, while its pre-tax profit surges to $1 billion. However, an IPO remains unlikely until 2026.

These updates are shaping the future of payments, tech, and finance. Let’s run through it! ??

?? OpenAI Unveils GPT-4.5: Smarter, Faster, and More Expensive

1. A Powerful Yet Exclusive AI Release: OpenAI has launched GPT-4.5, its latest large language model (LLM) with faster responses, improved reasoning, and a 37.1% lower hallucination rate. Initially available only to ChatGPT Pro ($200/month) and API users, access for Plus ($20) and Team ($30) subscribers is expected next week. However, GPU shortages are limiting its rollout, highlighting the growing demand for AI computing power.
2. High Costs Spark Industry Debate: GPT-4.5 comes with a steep price tag, charging $75–$180 per million tokens via API—far higher than GPT-4o’s $2.50–$10. This has divided developers, as rival models like Claude 3.7 and Gemini 2 Pro offer competitive performance at lower costs. OpenAI must prove that GPT-4.5’s improvements justify its premium pricing.
3. An AI Startup Within OpenAI’s Ecosystem: Described as “a kind of startup” within OpenAI, GPT-4.5 serves as a testbed for future AI advancements. While praised for its natural conversations and efficiency, leaked benchmarks suggest only incremental improvements over previous models. OpenAI positions GPT-4.5 as a stepping stone toward more advanced AI, refining reasoning and multimodal capabilities for future releases.

?? Google Pay Introduces Convenience Fees for Card Payments

1. Google Pay’s New Fee Structure: Google Pay has begun charging 0.5% to 1% in convenience fees on credit and debit card payments for utilities like electricity and gas. Previously free, this move aligns with competitors PhonePe and Paytm, which have also introduced similar charges. UPI transactions linked directly to bank accounts remain free.
2. Growing Trend of Monetizing Transactions: Other UPI platforms, including PhonePe and Paytm, already charge fees on bill payments via cards, with Paytm’s charges ranging from ?1 to ?40 based on the transaction amount. As digital payment platforms seek sustainable revenue models, monetization through convenience fees is becoming a widespread industry trend.
3. Impact on Users and Industry: Users relying on credit or debit cards for utility payments may need to reconsider their payment methods to avoid extra charges. While some criticize the move for discouraging digital payments, others acknowledge fintech firms' need for revenue streams. As the industry evolves, uncertainty remains around whether more UPI services will adopt similar fees.

?? American Express and Alipay Enable Seamless Payments for Travelers in China

1. New Payment Integration for American Express Cardholders: American Express Card Members can now link their cards to Alipay’s digital wallet, allowing secure and seamless payments across millions of merchants in China. This move enhances convenience for international travelers while providing local businesses with more opportunities to attract global customers.
2. Strategic Collaboration to Expand Cross-Border Payments: As the first foreign payments network licensed to clear RMB transactions, American Express has strengthened its presence in China through partnerships with over 30 Chinese banks and payment institutions. Alipay+, which connects 13 major e-wallets across Asia, further expands access to cross-border digital transactions.
3. Driving Global Connectivity and Innovation in Payments: Industry leaders highlight this integration as a step toward a more connected global payment ecosystem. By leveraging digital wallets, SMEs can better engage with travelers, while consumers benefit from secure and effortless transactions, reinforcing China’s role in the evolving global fintech landscape.

?? NPCI Introduces ‘Transfer Out’ Feature for UPI Lite

1. New Feature Enhances User Control: The National Payments Corporation of India (NPCI) has launched the ‘Transfer Out’ feature for UPI Lite, allowing users to withdraw funds from their Lite balance back to their original bank account without disabling UPI Lite.
2. Implementation Deadline and Security Enhancements: All banks, PSPs, and UPI apps must implement this feature by March 31, 2025. To ensure security, UPI apps with active UPI Lite will require authentication via passcode, biometric verification, or pattern lock when logging in.
3. Increased Wallet and Transaction Limits: The UPI Lite wallet limit has been raised to ?5,000, and the per-transaction limit is now ?500. Additionally, UPI 123Pay transactions can now go up to ?10,000, doubling the previous limit.

?? Revolut Considers Secondary Share Sale Amid Surging Valuation

1. Pressure for Another Share Sale: Revolut is under pressure from investors to consider a secondary share sale at a $60 billion valuation, a significant jump from its $45 billion valuation six months ago. This comes as shareholders signal interest in offloading their stakes and new investors look to enter the booming fintech sector.
2. Growing Interest and Profit Surge: Discussions of a potential sale come as Revolut is set to report a pre-tax profit of $1 billion for 2024, nearly doubling from the previous year's $545 million. The growing interest in Revolut shares mirrors the broader fintech resurgence, with competitors like Stripe also experiencing similar valuation boosts.
3. IPO Plans Not Immediate: Despite the excitement, Revolut is unlikely to go public before 2026, with a U.S. listing potentially on the cards. Meanwhile, the company continues to expand its global customer base, surpassing 50 million users, positioning it as one of the largest financial institutions in the world.

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