5 Best Payment Gateways in India in 2024

In 2023, India's ecommerce market made over 63 billion US dollars in revenue, and it's projected to surpass 107 billion dollars by 2027. 

If you're looking to succeed in this growing market, it's important to know how to choose the right payment method that is convenient and popular amongst the local market.

Speaking of payment methods, did you know that 79% of Indian households favour third-party digital payment apps? 

Some of these third-party payment methods are Paytm, PhonePe, and Google Pay, and they are the most popular in the mobile wallet market in India. 

52% opt for Unified Payments Interface (UPI), a smartphone banking app overseen by the Reserve Bank of India (RBI), the country's central bank. 

Lastly, 38% use credit or debit cards. Worth mentioning is that alongside major global players like Visa and Mastercard®, a domestic card payment network like RuPay is also popular in the country.

Equated Monthly Instalments (EMI) and Net Banking are other well-known options.

With so many different options available, it will be time-consuming for entrepreneurs and business owners to research and find the best payment gateways and methods for consumers in India. 

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.

What Is a Payment Gateway? 

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.

📖 Tip: Check out our payment gateway guide and payment service provider guide for comprehensive insights into how payments work.

Note: All information provided is dated 28 September 2023 and may have been updated since. Please check each payment gateway’s website for the latest information.

1. Paytm

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 even booking movie and travel tickets.

It has expanded its offerings to support businesses through its "Paytm for Business" platform, which encompasses online payments, business software solutions, and access to business loans, among other services.

Over 20 million businesses use Paytm to accept digital payments. And it powers India’s biggest brands like IRCTC, Uber, Flipkart, Zomato and numerous others. 

Paytm Key Features

• 100% online onboarding
• Accept online payment
• Accept international payments in major currencies including USD, EUR, RUB, INR, GBP, JPY 
• Payment links feature 
• Accept subscription payments 
• Real-time analytics and customisable reports
• Multi-lingual interface with an additional 10 Indian regional languages
• Integration with popular ecommerce platforms and business tools such as Shopify, WooCommerce, Magento, Opencart, Zoho, and more
• APIs and SDKs
• PCI DSS compliance 

Paytm Accepted Payment Methods

Paytm offers over 100 payment methods, including Indians’ preferred methods, which are:

• Digital wallet - Paytm 
• UPI
• Debit and credit cards - Visa, Mastercard®, Maestro, American Express, Diners, RuPay and more  
• Net Banking
• EMI 

Other payment methods may be supported upon request. 

Paytm Key Usage Fees

Paytm’s Standard Plan Merchant Discount Rate (MDR) are as follows.

💡T ip: Paytm also has a custom pricing plan for enterprises. Please refer to the Paytm Pricing page for more details. 

Paytm Pros and Cons

2. Razorpay

Razorpay is another popular payment processing platform headquartered in Bangalore. 

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. 

Razorpay Key Features

• Supports 92 currencies
• Accept online payments
• Accept subscription payment
• Payment links, payment pages and payment button features
• Easy-integrated checkout
• Completely online onboarding
• Dashboard with key statistics and real-time insights 
• Create and run promotional offers to boost conversion 
• One-click ecommerce plugins with major platforms such as Shopify, WooCommerce, Magento, PrestaShop, etc. 
• Checkout page interface with 7 additional regional languages
• API
• 24/7 support 
• PCI DSS compliance 

Razorpay Accepted Payment Methods

Razorpay offers over 100 payment methods, among those are the preferred choices in India, including

• Digital wallets - PhonePe, PayPal, Amazon Pay, PayZapp, MobiKwik, FreeCharge, and more
• UPI - PhonePe, Paytm, Google Pay, Amazon Pay, and more
• Credit and debit cards - Visa, Mastercard®, RuPay, Maestro, American Express, Diners Club  
• Net Banking - ICICI, Kotak, Axis and more 
• EMI 
• PayLater

Razorpay Key Usage Fees

*18% GST applicable

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.  

Razorpay Pros and Cons

3. Cashfree Payments

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 Payments Key Features

• 120+ payment mode
• Collect payment online across multiple platforms
• Support recurring payment
• Support payment link
• Make an on-demand payout
• Instant refunds feature
• “Auto collect” features with virtual payment address and automated reconciliation, built specifically for multi-branch businesses 
• Plugins that support Shopify, WooCommerce, Magento, PrestaShop, OpenCart, WordPress and more 
• highly-customisable APIs 
• PCI DSS compliance 

Cashfree Payments Accepted Payment Methods

Cashfree Payments offers over 120 payment methods, including

• Digital wallets - Paytm, PhonePe, PayPal, Amazon Pay and more 
• UPI
• Credit and debit cards
• Net Banking
• EMI
• Pay Later 

Cashfree Payments Key Usage Fees

Feel free to 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.

Cashfree Payments Pros and Cons

4. PayU

PayU offers digital payment solutions to businesses in India, with over 500,000 merchants trusting its services.

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.

PayU Key Features

• Web checkout and app checkout
• Multi-lingual checkout
• Support recurring payments 
• Support international payment
• One-click checkout experience with native OTP
• Sending invoices with payment links 
• Instant refunds
• Plugins compatible with leading ecommerce platforms and business software, including Shopify, BigCommerce, Opencart, Wix, Zoho, and more
• APIs and lightweight SDKs
• PCI DSS compliance

PayU Accepted Payment Methods

PayU India accepts over 150 payment modes, including

• Digital wallets - Paytm and more
• Credit and debit cards - Visa, Mastercard®, RuPay, American Express, and more
• UPI
• Net Banking
• EMI
• BNPL

PayU Key Usage Fees

PayU India has a simple pay-as-you-go plan, with 18% GST applicable on all transactions. 

Please refer to PayU India Pricing page for full details. 

💡 Tip: For larger enterprises, you can contact PayU for tailored pricing. 

PayU Pros and Cons

 5. Instamojo

While Instamojo is primarily recognised as an ecommerce website builder, it actually offers an online payments solution alongside its online store platform. This includes a smart page, payment links, payout, and payment gateway.

The payment gateway product emphasises simplicity, flexibility, and security tailored for ecommerce. It is trusted by 20,00,000+ Indian businesses. 

Instamojo Payment Key Features

• Embeddable pay button
• Checkout page
• 3-business-day settlement 
• Easy integration with WooCommerce, Magento, and more 
• PCI DSS compliance 

Instamojo Payment Accepted Payment Methods

Instamojo offers over 100 online payment methods. Among those are the following

• Digital wallets - Mobikwik, Freecharge, OlaMoney, and JioMoney
• Credit and debit cards - all major brands
• UPI
• Net Banking

Instamojo Payment Key Usage Fees

* GST will be charged in addition to the mentioned prices.

Please refer to Instamojo Payment Gateway page and Instamojo Pricing page for full details.  

Instamojo Pros and Cons

Factors to Consider When Selecting a Payment Gateway 

To provide context behind our highlighted payment gateway selections, let's outline the key considerations when evaluating any payment gateway service provider.

Security

Security takes centre stage when handling your customers' financial and personal data.

Key security measures for safe transactions include

• End-to-end encryption to encode data between endpoints, allowing only authorised access to customers' payment details.
• Verification systems like PINs, passwords or biometrics for authentication.
• Fraud protection tools that monitor, block potential fraud, and alert relevant parties such as cardholders about unusual transactions so preventive steps can be taken if a breach is suspected.
• Compliance with PCI DSS, the security standard used by major card brands to prevent fraud and data breaches.

When evaluating providers’ security, consider asking:

• How do you ensure data security?
• What approaches are used to counteract fraud and cyber risks?
• What is the action plan in case of a data breach?

🔎 Tip: Learn more about 11 crucial security services to protect your ecommerce website from fraud and risk

Simplicity

A majority (70%) of shopping carts are left unpurchased, partly due to the complicated checkout process.

The simpler, faster and less cluttered you make the payment process, the better chance of getting customers past the 70% abandonment rate. That said, 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 devices.

Lastly, a user-friendly backend interface should not be underestimated. Whether it involves processes such as transaction management, refund processing, reporting, or other functions, a well-designed admin console will save you a significant amount of trouble and time.

To analyse a provider's user experience, ask them about their interface design specifics, such as:

• What customisation options are available?
• Does the payment page perform well on various devices, browsers, and screen sizes?
• What functionalities are included in the admin dashboard?

🔎 Tip: Explore effective strategies to boost conversion rates during the checkout process.

Costs

Using a payment gateway incurs various costs, primarily transaction fees, setup fees, annual maintenance fees, international fees, and dispute fees, among others.

In the case of India, it's crucial to consider the Goods and Services Tax (GST). GST rates in India can range from 0% to 28%, and products like payment gateways fall into the 18% category. Verify whether the provider's prices include these taxes. 

It's essential to ensure that these expenses don't erode your profit margins.

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.

If you have a steady, high-volume business, subscriptions may be more worthwhile. In contrast, businesses with irregular or lower sales may benefit more from pay-as-you-go plans.

We recommend obtaining a quote and speaking to the provider's sales team for any questions. You could inquire about discounts and eligibility requirements, too.

Example questions to ask include:

• What is covered by monthly fees?
• How are international payments and foreign currencies handled?
• Are extra services like fraud prevention or support charged separately?
• Are volume discounts offered?
• How will invoices be issued?

💡 Tip: It's always a good idea to check into volume pricing options when your business starts to expand. 

Compatibility

Even a top-notch payment gateway holds little 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 integration options a payment gateway provider should offer include:

• API (Application Programming Interface) to facilitate data exchange between programs and platforms.
• SDK (Software Development Kit) that allows developers to customise gateway functionality through code libraries and tools.
• Documentation guiding how to leverage tools like the API and SDK.
• Responsive technical support in case issues arise.

To evaluate a payment gateway provider's compatibility, ask about the following:

• Supported programming languages, frameworks and tools for integration.
• How updates, upgrades or modifications to the gateway or features are managed.

Assistance

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:

• What methods are available for contacting support?
• How responsive is your customer service?

Languages

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. 

Final Thoughts

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!