As mobile payments via UPI, credit/debit cards, wallets, and net banking have been on the rise, secure online payment solutions have never been in greater demand. This guide will assist you in comparing the best payment gateway in India based on features, cost, ease of integration, and much more.
What Is a Payment Gateway?
A payment gateway is a technical solution by which merchants can accept online payments. It gives a secure connection between the payment instrument of the customer (card, UPI, wallet, etc.) and the merchant bank account. The ideal payment gateway in India must have multi-layered security, quick transaction processing, extensive support for payment modes, and easy integration options.
Key Features to Look for in a Payment Gateway
Before comparing, it is important to understand what makes a good payment gateway for Indian sellers:
Multiple Payment Channels: UPI, cards, wallets, net banking, EMI
Transaction Charges: Fair and transparent fees
Security Norms: PCI-DSS, SSL, fraud protection
Integration: Plug-ins for CMS platforms and REST APIs
Settlement Cycle: How fast the money is credited to your bank
Customer Support: 24/7 helpdesk and technical support
Comparison of the Best Payment Gateway in India
Here's a brief overview of some of the most popular and highly-rated India gateways:
- Razorpay
Overview: One of the most rapidly growing and developer-friendly payment gateways of India. It's used widely by startups, SaaS businesses, and e-commerce websites.
Payment Methods: UPI, credit/debit cards, wallets, EMI, net banking
Transaction Fees: 2% per transaction (basic plan)
Settlement Time: T+2 working days
Pros:
Smooth API and SDK integrations
Subscription billing and invoicing functionality
Passable analytics dashboard
Cons:
A bit costly for international cards
- Paytm Payment Gateway
Overview: Supported by one of India's largest digital wallet firms, Paytm provides an end-to-end complete solution for small and large enterprises.
Payment Methods: UPI, cards, Paytm Wallet, net banking
Transaction Fees: 1.75% – 2.5%, depending on the channel
Settlement Time: T+1 working day
Strengths:
Very high brand credibility among Indian consumers
Plug-and-play WordPress, Shopify, and more plugins
Fast onboarding
Weaknesses:
Quite very challenging dashboard interface to navigate for new customers
- CCAvenue
Overview: One of the oldest and most trusted payment gateways in India, very popular among big companies and businesses.
Payment Methods: Over 200 modes like cards, UPI, wallets, EMI, etc.
Transaction fees: Starts at 2%
Settlement time: T+2 to T+3 working days
Pros:
Supports multiple languages as well as currencies
Maximum freedom for the checkout pages
Cons:
Gently outdated UI
Long approval time
- Instamojo
Overview: Ideal for small businesses, artists, and freelancers, Instamojo simplifies payment setup and acceptance.
Payment Modes: UPI, wallets, net banking, cards
Transaction Charges: ₹3 + 2% per transaction
Settlement Time: T+3 working days
Strengths:
No website required—operates on the back of payment links
Instant activation and simple KYC
Weaknesses:
Far too few big business features
- Cashfree Payments
Overview: Fast settlements and payouts have made Cashfree a very popular option for businesses seeking efficient payment systems.
Payment Channels: PayLater, cards, wallets, UPI, and net banking
Transaction Charge: 1.75% – 2%
Settlement Cycle: T+1 to T+2 days
Strengths:
Real-time refunds and instant payouts
High API support
Weaknesses:
Lower visibility brand than Razorpay and Paytm
What's the Best Payment Gateway in India for You?
The "best payment gateway in India" depends on your business model, volume, and technical expertise. Here's a quick summary:
Business TypetRecommended Gateway
Small BusinesstInstamojo, Paytm
E-commerce StoretRazorpay, Cashfree
EnterprisetCCAvenue, Razorpay
Subscription ModeltRazorpay, Cashfree
Freelancers & NGOstInstamojo, Paytm
Things to Keep in Mind Before a Decision
Transparent Fees: Be aware of any extra fees like setup, maintenance, or foreign exchange rates.
Integration Ease: Opt for a gateway that integrates via plugins or APIs on your website.
Refund and Dispute Assistance: Effortless refund processing makes customers happy.
Mobile Friendliness: Make sure the payment gateway is responsive and mobile-friendly.
Customer Support: A motivated customer support team can resolve payment issues instantly.
Conclusion
Selecting the ideal best payment gateway in India is a tactical decision that impacts your cash flow, customer experience, and long-term success. With so many wonderful options out there, it's well worth considering your business nitty-gritty and locating a gateway that fits into your vision.
From Razorpay's developer community to Paytm's brand loyalty and Instamojo's simplicity, there are benefits to each gateway. Take a minute to compare features, fees, and settlement times before you join up. Gateway choice done right will allow you to provide secure, simple payments—customers happy and profits increasing.