HK
HK
1.
Paytm
2.
Razorpay
3.
Cashfree Payments
4.
PayU
5.
Instamojo
India's ecommerce market is expected to grow to USD 300 billion by 2030.
As online shopping grows, digital payments are becoming more central to the process. The Unified Payments Interface (UPI) now handles over 75% of all digital transactions in India. UPI enables instant bank account transfers via apps, often linked with popular mobile wallets like Paytm, PhonePe, and Google Pay, while credit and debit card payments, including RuPay, remain widely used.
For businesses aiming to succeed in India's rapidly growing online market, selecting the right payment gateway that supports the payment methods most convenient and popular with local consumers is essential.
In this article, we've compiled a list of the best payment gateways in India, complete with their features, accepted payment options, fees, pros and cons, and factors to consider when selecting the ideal one for your business.
A payment gateway is a platform that collects, verifies, and encrypts a customer's payment information. Once secured, it sends these details to the payment processors and the merchant's account to finalise the transaction.
However, if there are any discrepancies, the customers retain the funds. Both parties are promptly notified of the transaction outcome, ensuring the security of funds when money changes hands.
| Providers | Highlights | Fees |
|---|---|---|
| Paytm | A widely used and established provider that can seamlessly integrate with Paytm, India's largest wallet | 1.99% - 2.99% |
| Razorpay | A comprehensive range of merchant services with one-click ecommerce integration | 1.50% - 3.5% |
| Cashfree Payments | A suitable option for businesses with multiple locations | 1.50% - 2.99% |
| PayU | A provider that has both global connectivity and domestic coverage | 2% - 3% |
| Instamojo | A solution that bundles an ecommerce platform with payment services | 2% - 5% plus INR 3 fee |
Note: All information provided is subject to change and may have been updated since the time of publication. Please check each payment gateway’s website for the latest information.
Paytm is a top payment app in India, with over 300 million Indians using it for everyday spending like shopping, paying bills, topping up mobiles, sending money to friends and family, and booking tickets.
It also supports businesses through its "Paytm for Business" offering payment gateways, business software, and business loans, among other services. The Paytm payment gateway is intended for small and large businesses, ecommerce, local vendors, freelancers, and more.
Over 20 million businesses use Paytm to accept digital payments. It also powers India’s biggest brands, such as IRCTC, Uber, Flipkart, Zomato, and numerous others.
| Payment Collection | Over 100 acceptable payment methods Paytm javascript checkout Payment links Subscription payments Large payment collections. |
| Default Settlement Period | Within 1 business day |
| Integrations and Plugins | 30+ popular ecommerce platforms and business tools like Shopify, WooCommerce, Magento, and more. |
| Unique Offering | Boost conversions by offering customers no-cost EMI, cashback, and discounts. Manage and initiate refunds. 100% online onboarding. |
| APIs | APIs and SDKs for quick integration in 30 minutes |
| Security | PCI DSS compliance |
| Report | Real-time analytics and customisable reports |
| Customer Support | Dedicated support via toll-free number and email |
| International Payments Capabilities | Accept international payments in 95+ currencies, including USD, EUR, RUB, INR, GBP, and JPY, with settlements in INR. |
Paytm offers over 100 payment methods, including Indians’ preferred methods, which are:
Other payment methods may be supported upon request. The monthly transaction limit depends on the business type.
Paytm offers two types of pricing plans for its online payment gateway: the standard pricing plan and the enterprise pricing plan. The enterprise plan is fully customisable, while the standard plan fees, designed for small to medium-sized businesses, are as follows:
Please note that 18% GST is applicable on all fees. For more details, please refer to the Paytm Pricing page.
Razorpay is another well-known payment processing platform headquartered in Bangalore. The company provides a range of payment solutions designed for business owners, enabling them to accept, process, and distribute payments through a single provider.
While its primary service is a payment gateway, it offers various business-oriented products alongside, including developer-friendly APIs, straightforward integration solutions, payroll, business banking and more.
Razorpay has served 5 million businesses so far.
| Payment Collection | Over 100 acceptable payment methods Payment links Payment pages and payment button Subscription payment |
| Default Settlement Period | 2 days for domestic payments and 7 days for international payments. |
| Integrations and Plugins | One-click ecommerce plugins for major platforms such as Shopify, WooCommerce, Magento, PrestaShop, etc. |
| Unique Offering | Create and run promotional offers to boost conversion, flash checkout features, custom UI, native OTP integration, fully online onboarding process, quick account activation |
| APIs | APIs available for integration, SDKs |
| Security | PCI DSS compliance |
| Report | Dashboard with key statistics and real-time insights |
| Customer Support | 24/7 support is available through ticket submission. You can also request to chat or receive a callback. |
| International Payments Capabilities | International gateway supporting about 100 major currencies and INR settlements. |
Razorpay offers over 100 payment methods, among those are the preferred choices in India, including:
Here are the Razorpay Key Usage Fees
All fees are subject to 18% GST. Depending on the payment method, the monthly transaction limit ranges from INR 10,000 to INR 500,000.
Please refer to Razorpay Payment Gateway Charges for full details.
Tip: If your monthly revenue exceeds INR 5 Lakh, you may want to contact Razorpay for a possible discount.
Cashfree Payments is a comprehensive payment platform in India that enables users to make and collect payments in India and abroad. It supports various payment methods and offers added features such as instant settlements, recurring payments, verification services, and cross-border payments.
Cashfree serves over 600,000 businesses, processing more than USD 80 billion annually.
| Payment Collection | 120+ payment mode Collect payments via WhatsApp, SMS, Facebook, Twitter, and other channels without coding. Payment link Recurring payment Make an on-demand payout |
| Default Settlement Period | Within 2 days, with options for faster settlements and instant fund access, including on bank holidays. |
| Integrations and Plugins | Plugins that support Shopify, WooCommerce, Magento, PrestaShop, OpenCart, WordPress and more |
| Unique Offering | Instant refunds feature, “Auto collect” features with virtual payment address and automated reconciliation built specifically for multi-branch businesses, process up to 3,000 transactions per second. |
| APIs | Highly customisable APIs, SDKs |
| Security | PCI DSS compliance |
| Report | Centralised management with an advanced dashboard and report. Monitor and act in real-time. |
| Customer Support | Get support through website queries and file complaints via email. |
| International Payments Capabilities | An international payment gateway that supports transactions in over 100 currencies, with standard settlements in INR within 2 days. |
Cashfree Payments offers over 120 payment methods, including
Here are the Cashfree Payments Key Usage Fees
Please refer to Cashfree Payments' Pricing for the complete details.
Tip: Cashfree Payments also offer custom pricing for high-volume businesses. Contact their sales and submit your questions for more information
PayU offers digital payment solutions to businesses in India, with over 500,000 merchants trusting its services.
The company offers a comprehensive payment ecosystem, including payment gateways, QR codes, account automation, and more. PayU also caters to industry-specific needs such as startups, travel, insurance, and edtech.
Beyond India, PayU operates under the extended brand PayU Global, serving as the payment gateway and processor for online transactions. In certain markets, it also functions as an acquiring bank.
| Payment Collection | Over 150 accepted payment methods Sending invoices with payment links Support recurring payments No-code payment acceptance via WhatsApp, SMS, email, or website button Prebuilt or custom web and mobile app checkouts |
| Default Settlement Period | Within 2 days after the transaction. You have an option for instant priority settlements to get the fund settled faster. |
| Integrations and Plugins | Plugins compatible with leading ecommerce platforms and business software, including Shopify, BigCommerce, Opencart, Wix, Zoho, and more |
| Unique Offering | Multi-lingual and one-click checkout experience with native OTP, instant refunds |
| APIs | APIs and lightweight SDKs |
| Security | PCI DSS compliance |
| Report | Detailed and downloadable report |
| Customer Support | Submit queries to get answers on the website. |
| International Payments Capabilities | International payments via Visa, Mastercard®, and Amex in 150+ countries, with currencies like USD, EUR, GBP, AUD, AED, SGD, BHD, NZD, and more. Settles in INR |
PayU India accepts over 150 payment modes, including
PayU India has a simple pay-as-you-go plan, with 18% GST applicable on all transactions.
Please refer to the PayU India Pricing page for full details.
Tip: For larger enterprises, you can contact PayU for tailored pricing.
Instamojo is primarily recognised as an ecommerce website builder for direct-to-consumer (D2C) businesses, MSMEs and startups. However, it also offers an integrated online payments solution within the platform, allowing users to manage their online businesses with features like an in-website payment gateway, shipping, and analytics. Additionally, it provides payment solutions such as a smart page, payment links, and payouts.
The payment gateway product emphasises simplicity, flexibility, and security tailored for ecommerce. It is trusted by over 2,000,000 Indian businesses.
| Payment Collection | Over 100 payment methods Embeddable pay button with a one-line code, customisable for branding. Checkout page Payment links |
| Default Settlement Period | Default settlement within 3 business days after the transaction, with faster payout options available (instant, same-day, and next-day) for an additional fee. |
| Integrations and Plugins | Easy integration with WooCommerce, Magento, and more |
| Unique Offering | Get a fully customisable website that comes with a built-in payment gateway, order management and shipping integrations. |
| APIs | Payment APIs and custom apps |
| Security | PCI DSS compliance |
| Report | A single dashboard with centralised analysis |
| Customer Support | Email or request a contact back by leaving your information on the website |
| International Payments Capabilities | International payment capabilities are not generally supported. However, you can contact the provider to apply. This will be subject to KYC approval. |
Instamojo offers over 100 online payment methods. Among those are the following
18% GST per transaction applies to all fees. Please refer to Instamojo Payment Gateway page and Instamojo Pricing page for full details.
To provide context behind our highlighted payment gateway selections and help you choose the right payment gateway for your business needs, let's outline the key factors to consider when evaluating any service provider.
A secure payment takes centre stage when handling your customers' financial and personal data.
Key security measures for safe transactions include:
When evaluating providers’ security, consider asking them:
Complicated checkout processes partly contribute to 70% of abandoned carts.
The simpler, faster and less cluttered you make the payment experience, the better chance of getting customers past that 70%.
Leveraging a one-click checkout page offered by many providers can be your best move. A responsive design optimised for various devices and screens will also be important since nearly 40% of customers shop on mobile. Lastly, check the success rate of a payment gateway, as it should be about 99%.
On the backend, a well-designed admin dashboard can save you time and effort in transaction management, refund processing, and reporting, improving overall operational efficiency.
To analyse a provider's user experience, ask them about their interface design specifics, such as:
Payment gateways come with various costs, primarily transaction fees, setup fees, annual maintenance fees, international fees, and dispute fees. In India, the Goods and Services Tax (GST) is another important factor. Payment gateways are typically subject to an 18% GST, so it’s best to verify whether the provider's fees include this tax.
Furthermore, consider the pricing structure. Payment gateways typically offer two options: subscription plans with monthly fees but lower per-transaction costs or pay-as-you-go plans with no monthly fees but potentially higher cost per transaction.
In general, subscription plans are better for high-volume businesses, while pay-as-you-go suits businesses with irregular or lower sales.
To better understand costs, request a quote and ask questions such as:
Tip: It's always a good idea to check into volume pricing options when your business starts to expand.
Even the most secure and feature-rich payment gateway won't add value if it cannot function within your current infrastructure. Integration with existing systems such as your website, online store, CRM software, and other essential business tools is a crucial criterion.
Common payment gateway integration options include:
To evaluate a payment gateway provider's compatibility, ask about the following:
It's common to encounter payment system hiccups such as checkout crashes, fee errors, dispute issues, and refund failures, which can result in customer dissatisfaction and revenue declines.
Therefore, it’s crucial to have a provider with a responsive support team that can promptly address issues and is easily accessible through various channels such as phone, email, or live chat.
Some questions to ask about support when vetting a payment service provider include:
India is home to a diverse array of languages, with Hindi having the most native speakers, 22 officially recognised, and hundreds of others spoken across the country.
So, dynamic checkout with regional languages available is a nice plus.
Doing business in India means understanding its unique payment preferences. This includes supporting digital wallets like Paytm and PhonePe, the RBI-backed UPI platforms, and major cards, including the domestic RuPay.
In addition, key factors to weigh when picking a payment gateway provider are robust security, user-friendly interfaces, seamless integrations, cost-effectiveness, and reliable customer support.
With those factors in mind, our list highlights Paytm's widespread acceptance, Razorpay's wide range of preferred payment options, Cashfree's support for multi-branch businesses, PayU's blend of local and global reach, and Instamojo's dual offering as both an ecommerce platform and payment solution.
We hope this guide helps you make an informed decision when picking the best payment solution for your business in India!
