Payment gateways in India have become an essential part of online businesses as digital transactions continue to grow across the country.
With the rapid adoption of UPI, mobile wallets, cards, and online banking, businesses now need secure and reliable payment solutions to accept customer payments.
Choosing the right payment gateway helps improve checkout experiences, reduce payment failures, and build customer trust.
Factors such as transaction fees, supported payment methods, security features, integration options, and settlement speed influence the selection process.
This guide covers the top payment gateway companies in India, their features, charges, and how businesses can choose the right solution for their needs.
- What is a Payment Gateway in India?
- How Does a Payment Gateway Work?
- Different Types of Payment Gateways
- Benefits of Using a Payment Gateway
- Top 10 Payment Gateway Companies in India
- Payment Gateways in India for International Payments
- Features to Consider Before Choosing a Payment Gateway in India
- Payment Gateway Charges in India
- How to Choose the Right Payment Gateway for Your Business
- Conclusion: Payment Gateways in India
- Need an eCommerce Website with Secure Payment Gateway Integration?
- FAQs About Payment Gateways in India
What is a Payment Gateway in India?
Payment gateways in India operate within the digital payment ecosystem regulated by authorities such as the Reserve Bank of India (RBI), which sets guidelines to ensure secure and reliable payment processing.
It securely connects customers, merchants, banks, and payment networks to process transactions. When a customer makes an online payment, the payment gateway verifies the transaction details, authorises the payment, and transfers the funds to the merchant account.
Payment gateways are essential for eCommerce stores, service providers, SaaS businesses, and other online companies that want to offer customers a safe and convenient way to pay digitally.
How Does a Payment Gateway Work?
A payment gateway works as an intermediary between the customer, business, and financial institutions during an online transaction. The process usually involves the following steps:
- Customer selects a payment method
During checkout, the customer chooses a preferred payment option such as UPI, credit card, debit card, net banking, or wallet. - Payment details are securely transferred
The payment gateway encrypts the customer’s payment information and sends it securely for verification. - Transaction authentication takes place
The customer’s bank or payment provider verifies the transaction details and checks whether the payment can be approved. - Payment approval or rejection
After verification, the bank approves or declines the transaction based on factors such as available balance, security checks, and authentication. - Funds are transferred to the business account
Once the payment is successful, the amount is settled to the merchant account according to the payment gateway’s settlement cycle.
This entire process happens within seconds and helps businesses provide a smooth checkout experience for customers.
Different Types of Payment Gateways
Businesses can choose from different types of payment gateways based on their technical requirements, security needs, and level of customisation. The main types include:
1. Hosted Payment Gateway
A hosted payment gateway redirects customers to a secure payment page managed by the gateway provider. It is easy to integrate and suitable for small businesses with limited technical resources.
2. API-Hosted Payment Gateway
An API-hosted payment gateway integrates payment features directly into a website or app. It provides more control over checkout design and is ideal for businesses needing customised payment experiences.
3. Self-Hosted Payment Gateway
A self-hosted payment gateway allows businesses to collect payment details on their own platform before processing transactions. It offers flexibility but requires strong security measures and technical expertise.
4. Local Bank Integration Gateway
A local bank integration gateway connects directly with a specific bank’s payment system. It enables businesses to process transactions through bank infrastructure and is suitable for organisations requiring direct banking solutions.
Benefits of Using a Payment Gateway
Using a payment gateway provides several advantages for online businesses by making digital transactions faster, safer, and more convenient.
Secure Payment Processing
Payment gateways use security technologies such as encryption, tokenisation, and fraud detection systems to protect sensitive customer payment information. This helps businesses reduce the risk of unauthorised transactions.
Multiple Payment Options
A reliable payment gateway allows businesses to accept various payment methods, including UPI, credit cards, debit cards, net banking, wallets, EMI options, and Buy Now Pay Later (BNPL) services.
Improved Customer Experience
A simple and smooth payment process helps customers complete purchases quickly. A better checkout experience can reduce cart abandonment and increase conversions.
Faster Transaction Processing
Payment gateways process transactions within seconds, allowing customers to receive quick payment confirmations and businesses to manage orders efficiently.
Easy Transaction Management
Businesses can monitor payments, track settlements, process refunds, and generate reports through a central dashboard.
Supports Business Growth
A scalable payment gateway helps businesses handle increasing transaction volumes and expand their payment options as they grow.
Enables International Payments
Many payment gateways support international cards, multiple currencies, and cross-border transactions, allowing businesses to sell products and services globally.
Top 10 Payment Gateway Companies in India
This list of Indian payment gateway companies includes leading payment solutions for businesses to accept online payments securely.
1. Razorpay
Razorpay is one of the most popular payment gateways in India, offering secure payment solutions for startups, small businesses, and enterprises. It supports multiple payment methods, including UPI, cards, net banking, wallets, and EMI options.
Razorpay provides easy integration through APIs and plugins for eCommerce platforms. It also offers features such as subscription payments, payment links, automated settlements, and transaction analytics, making it suitable for businesses of different sizes.
2. PayU
PayU is a widely used payment gateway that helps businesses accept online payments securely. It provides solutions for eCommerce stores, financial services, education platforms, and digital businesses. PayU supports various payment methods, including UPI, cards, wallets, and net banking.
With features such as fraud protection, payment analytics, recurring payments, and developer-friendly integrations, PayU is suitable for businesses looking for reliable payment processing and scalable digital payment solutions.
3. Cashfree Payments
Cashfree Payments provides payment gateway and financial technology solutions for businesses across different industries. It enables businesses to accept payments through UPI, cards, net banking, wallets, and other digital payment methods.
Cashfree Payments is known for fast settlements, payment automation, easy API integration, and payout solutions. It is commonly used by startups, marketplaces, and eCommerce businesses that need efficient payment processing and reliable transaction management.
4. CCAvenue
CCAvenue is one of the established payment gateway companies in India, offering secure online payment processing solutions. It supports a wide range of payment methods, including cards, UPI, net banking, wallets, and international payments.
CCAvenue provides features such as multi-currency support, transaction reports, fraud protection, and customisable checkout options. It is a suitable choice for eCommerce businesses, travel companies, and enterprises requiring flexible payment solutions.
5. Instamojo
Instamojo is a simple payment solution designed for small businesses, freelancers, creators, and startups. It allows users to collect payments through payment links, online stores, invoices, and websites without complex technical requirements.
Instamojo supports UPI, cards, net banking, and wallets. Its easy setup process and user-friendly interface make it suitable for businesses that need a straightforward way to accept online payments and manage transactions.
6. PhonePe Payment Gateway
PhonePe Payment Gateway enables businesses to accept digital payments through one of India’s widely used payment ecosystems. It supports payment methods such as UPI, cards, and other online payment options.
With secure processing, API integration, transaction monitoring, and strong UPI capabilities, PhonePe Payment Gateway is suitable for eCommerce businesses, mobile applications, and companies handling high volumes of digital transactions.
7. Paytm Payment Gateway
Paytm Payment Gateway helps businesses accept online payments through websites and mobile applications. It supports UPI, Paytm Wallet, cards, net banking, and EMI options.
The platform provides features such as payment analytics, secure transaction processing, refund management, and easy integration tools. Due to its strong brand recognition and large user base, Paytm Payment Gateway is a suitable option for retailers, startups, and online businesses.
8. BillDesk
BillDesk is a trusted payment platform used by businesses, financial institutions, and service providers for large-scale payment processing. It offers secure digital payment solutions with support for UPI, cards, net banking, and recurring payments.
BillDesk is known for handling high transaction volumes and providing enterprise-level payment infrastructure. It is commonly preferred by organisations that require reliable payment processing and advanced transaction management capabilities.
9. Juspay
Juspay provides payment technology solutions focused on improving checkout experiences and payment success rates. It offers payment orchestration, smart routing, tokenisation, and advanced payment management features.
Juspay is mainly used by large eCommerce businesses, fintech companies, and digital platforms that require scalable payment infrastructure. Its developer-focused approach helps businesses optimise payment flows and manage multiple payment providers efficiently.
10. Easebuzz
Easebuzz offers digital payment solutions that help businesses collect and manage online payments efficiently. It supports UPI, cards, net banking, wallets, payment links, and recurring payments.
Easebuzz provides features such as automated settlements, transaction reports, refund management, and API integrations. It is suitable for startups, eCommerce businesses, educational platforms, and service providers looking for a reliable payment gateway with flexible payment management options.
Payment Gateways in India for International Payments
International payment gateways available in India help businesses accept payments from customers worldwide and support cross-border transactions.
1. Stripe
Stripe is a popular international payment gateway that helps businesses accept online payments globally. It supports multiple currencies, international cards, subscriptions, and custom payment gateway integrations, making it suitable for SaaS companies, online stores, and businesses targeting global customers.
2. PayPal
PayPal is a widely recognised international payment solution used by businesses to receive payments from customers worldwide. It supports multiple currencies, international transactions, and card payments, making it suitable for freelancers, eCommerce businesses, and online service providers.
3. Adyen
Adyen is an enterprise-focused payment platform that enables businesses to accept payments across different countries. It supports multiple currencies, international payment methods, and local payment options, making it suitable for large eCommerce companies and global businesses.
4. Checkout.com
Checkout.com provides international payment processing solutions for businesses operating across multiple markets. It supports global cards, digital wallets, local payment methods, and multi-currency transactions, making it suitable for large online businesses and technology companies.
5. 2Checkout (Verifone)
2Checkout helps businesses accept international payments from customers in different countries. It supports multiple currencies, global payment methods, and recurring billing, making it a suitable option for SaaS companies, software businesses, and digital product sellers.
Features to Consider Before Choosing a Payment Gateway in India
Before selecting a payment gateway in India, businesses should check important features that improve payment security, customer experience, and transaction management.
- Security and Fraud Protection: Protect customer payment data with encryption, tokenisation, PCI DSS compliance, and fraud detection features.
- Transaction Fees and Pricing: Compare setup fees, transaction charges, refund costs, and other pricing factors before choosing a payment gateway.
- Support for Multiple Payment Methods: Accept payments through UPI, cards, net banking, wallets, EMI, and BNPL options to offer customer convenience.
- Fast Settlement Cycles: Choose a gateway that provides quick settlements to maintain smooth cash flow and business operations.
- International Payment and Multi-Currency Support: Support global customers with international cards, multiple currencies, and cross-border payment options.
- Smooth Checkout Experience: A simple and mobile-friendly checkout process helps reduce cart abandonment and improve conversions.
- Refund and Chargeback Management: Manage refunds and payment disputes easily with efficient tracking and automated processes.
- Recurring Payments and Subscription Billing: Enable automatic payments for SaaS products, memberships, subscriptions, and recurring services.
- Easy Integration with eCommerce Platforms: Ensure compatibility with platforms like Shopify, WooCommerce, and Magento for quick payment setup.
- Reporting and Business Insights: Access transaction reports, payment analytics, and settlement data to monitor business performance.
- Reliable Customer Support: Get quick assistance for payment issues, technical problems, and transaction-related concerns.
- Scalability for Business Growth: Select a gateway that can handle higher transaction volumes as your business expands.
Payment Gateway Charges in India
The payment gateway fees vary based on the provider, payment method, transaction volume, and business requirements. Before choosing a payment gateway, businesses should understand different charges involved in online payment processing.
- Setup Fees: Initial charges for activating and configuring a payment gateway account. Many providers offer free setup, especially for small businesses and startups.
- Annual Maintenance Charges: Some payment gateways may charge yearly fees for account management, support, or additional features.
- Domestic Transaction Fees: Charges applied when customers make payments within India through UPI, cards, net banking, or wallets.
- International Transaction Fees: Additional charges apply when businesses accept payments from international customers or process foreign currency transactions.
- Refund Charges: Fees related to processing customer refunds. Some providers may charge a fee for refund transactions.
- Settlement Charges: Costs associated with transferring collected payments from the payment gateway to the business bank account.
- Hidden Costs to Check: Businesses should review additional charges such as integration fees, currency conversion costs, premium features, and chargeback fees.
Payment Gateway Fee Comparison in India
The following table provides a general comparison of the best payment gateways in India. Actual charges may vary depending on business type, transaction volume, payment methods, and negotiated pricing.
Payment Gateway | Setup Fee | Annual Maintenance Charge | Domestic Transaction Fee | International Transaction Fee |
Razorpay | ₹0 | ₹0 | 2% + GST | 3% + GST |
PayU | ₹0 | ₹0 | 2% + GST | 3% + GST |
Cashfree Payments | ₹0 | ₹0 | 1.6% + GST* | 2.69% + GST* |
CCAvenue | ₹0 | Not charged | 2% + GST | Pricing available on request |
Instamojo | ₹0 | ₹0 | 2% + GST (standard pricing) | Pricing varies |
PhonePe Payment Gateway | ₹0 | ₹0 | 1.99% standard pricing* | Pricing varies |
Paytm Payment Gateway | ₹0 | Not publicly specified | Pricing varies by payment method | Pricing varies |
BillDesk | Custom pricing | Custom pricing | Available on request | Available on request |
Juspay | Custom pricing | Custom pricing | Available on request | Available on request |
Easebuzz | Custom pricing | Custom pricing | Available on request | Available on request |
Disclaimer: The payment gateway charges mentioned above are for general informational purposes only and may change based on the provider’s latest pricing plans, business category, transaction volume, payment methods, and other factors. Actual fees may vary for each business. Please check the official pricing pages or contact the payment gateway provider for the most accurate and updated charges.
How to Choose the Right Payment Gateway for Your Business
The right payment gateway can improve payment security, customer experience, and transaction management. Consider important factors such as payment options, pricing, integration, and support before making a decision.
Check Payment Methods Supported
A good payment gateway should support popular payment options like UPI, credit cards, debit cards, net banking, wallets, and EMI payments to provide customers with more flexibility.
Compare Pricing and Fees
Review transaction charges, setup fees, refund costs, and other payment gateway fees to understand the total cost and choose a solution that fits your budget.
Look at Security Features
Strong security features such as encryption, tokenisation, PCI DSS compliance, and fraud protection help safeguard customer payment details and prevent unauthorised transactions.
Check Integration Options
A payment gateway should easily integrate with your website, mobile app, or eCommerce platform. Simple integration helps businesses start accepting payments faster.
Consider Settlement Speed
Fast settlement cycles help businesses receive payments quickly and manage cash flow efficiently. Check the provider’s settlement timelines before choosing a payment gateway.
Review Customer Support
Reliable customer support helps resolve payment failures, technical issues, and transaction problems quickly. Good support ensures smooth payment operations without major disruptions.
Check Scalability
A scalable payment gateway can handle increasing transaction volumes as your business grows. It should support future expansion and changing payment requirements.
Evaluate User Experience
A simple and fast checkout process improves customer satisfaction and reduces cart abandonment. Choose a gateway that provides a smooth payment experience across devices.
Conclusion: Payment Gateways in India
Payment gateways in India have become an essential part of online businesses by enabling secure, fast, and convenient digital transactions. Popular providers such as Razorpay, PayU, Cashfree Payments, CCAvenue, Instamojo, PhonePe Payment Gateway, Paytm Payment Gateway, BillDesk, Juspay, and Easebuzz offer different solutions for businesses of all sizes.
Each payment gateway comes with unique features, pricing structures, payment options, and integration capabilities. Businesses can select a suitable solution based on their transaction needs, customer preferences, and growth plans.
With the continued growth of digital payments in India, reliable payment gateways will play an important role in improving online shopping experiences, supporting business expansion, and enabling secure payment processing.
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FAQs About Payment Gateways in India
Payment gateways help businesses accept online payments securely through websites, apps, and digital platforms. Below are answers to some common questions about payment gateways in India.
Which is the best payment gateway in India?
The best payment gateway in India depends on business requirements such as payment methods, pricing, security features, integration options, and transaction volume. Popular options include Razorpay, PayU, Cashfree Payments, CCAvenue, PhonePe Payment Gateway, and Paytm Payment Gateway.
How many payment gateways are there in India?
There are several payment gateways available in India, including domestic and international providers. Businesses can choose from many solutions based on their payment needs, industry requirements, supported payment methods, and customer preferences.
Which banks provide payment gateways in India?
Several banks in India provide payment gateway solutions either directly or through payment technology partners. Major banks offering payment services include HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India. These solutions help businesses process online transactions securely.
Which payment gateway is best for small businesses in India?
For small businesses, a payment gateway with easy setup, affordable charges, and simple payment management is usually the best choice. Razorpay, Instamojo, Cashfree Payments, Paytm Payment Gateway, and Easebuzz are popular options for small businesses.
Can I integrate multiple payment gateways into one website?
Yes, businesses can integrate multiple payment gateways into one website. Using multiple gateways allows businesses to offer more payment options, improve transaction success rates, and provide customers with alternative payment methods if one gateway faces issues.
Is there GST on payment gateway services in India?
Yes, GST is applicable on payment gateway services in India. Payment gateway providers generally charge GST on their service fees and transaction charges as per applicable tax regulations. Businesses should check their invoices and consult a tax professional for specific requirements.
