73% of MSMEs report growth via digital tools, with UPI and smartphones leading the charge. 87% of self-employed women use digital payments, and 83% now operate businesses via mobile.
Whilst 57% of women micro-businesses were initially unaware of UPI offerings, targeted community efforts now show fivefold transaction increase post‑onboarding
1. Understanding Payment Gateways
Think of a payment gateway as the secure bridge connecting your customers to your business for transactions. It’s the technology that safely authorizes and processes payments, whether they’re made online or in person. This essential tool handles a wide range of payment options, including credit and debit cards, UPI, net banking, and digital wallets, making sure your customers have a smooth and secure checkout experience.
1. Razorpay
Key Features:
- Cards, UPI, NB & wallets; instant refunds, route-balancing
- No setup/AMC
Pricing:
- Domestic txns: ~2% + GST
- International: additional 1% + 3% + 18% GST
Best for: Tech-savvy businesses needing robust tools and analytics
2. Paytm
Key Features:
- Excellent success rate, 300M+ users
- Recurring subscriptions, gift vouchers, merchant advertising tools
Pricing:
- UPI/NB: ₹0–0.4%
- Wallet: ~1.99%
- Credit cards: 1.99%
Best for: Domestic scale-ups needing full ecosystem support
3. Cashfree
Key Features:
- Multi-currency, UPI, wallets, BNPL options
- Instant refunds, split payments
Pricing:
- Flat 1.75% on most methods (cards, UPI, wallets), zero setup/AMC
Best for: Cost-sensitive businesses requiring wide payment variety
4. Instamojo
Loan Amount Covered
- Up to ₹5 crore, with up to 85% guarantee coverage by the government in case of default
Key Features:
- Built‑in storefront
- social media payment links
- logistics/credit integrations
Pricing:
- 2% + ₹3 per txn, no setup/AMC
Best for: New MSMEs selling online without complex integration
5. CCAvenue (Infibeam)
Key Features:
- 18 languages, 27 foreign currencies, tokenization via TokenPay
- PCI DSS compliance
Key Features
- Focused on first-time entrepreneurs
- Encourages self-employment in manufacturing, services, and trading
- Collateral-free via CGTMSE, plus handholding support
Pricing:
- Credit: ~2.25%, Debit: ~1.25–2.25%, International: ~3–4%
- AMC ~₹3,600 (waived first year)
Best for: Traditional enterprises needing international reach
6. PayU (PayUbiz/Money)
Key Features:
- 150+ payment modes, native OTP, one-click recurring pay
Pricing:
- Domestic: ~2% + GST; International/EMI: ~3% + GST
Best for: Enterprises needing scale and recurring payment options
7. PayKun
Key Features:
- UPI, cards, wallets; live chat & sandbox support
Pricing:
- Standard TDR: 1.75% (UPI/NB/cards/wallets),
- 2% on credit/Paytm wallet;
- no setup/AMC
Best for: Startups/SMEs seeking low-cost, simple gateway
8. BillDesk
- High-volume biller, strong bank integration
Pricing:
- Not publicly available; enterprise-grade
Best for: Utilities, large recurring billers needing stable, trusted platform
9. PayPal India
Key Features:
- Global reach (~200 countries), invoices, multi-currency
Pricing:
- ~4% service fee + USD 0.30 + currency conversion costs; auto withdrawals
Best for: Businesses serving global customers
10. MobiKwik
Key Features:
- Wallet payments, digital loans, merchant tools; 55M users, 1.5M merchants
11. Zaakpay
Key Features:
- Tailored for e-learning & donation platforms
Pricing:
- TDR from ~1.9% + GST; setup charges negotiable
Best for: Niche sectors seeking flexibility
12. Easebuzz, ePaisa, JustPay, Atom, etc.
Also noteworthy: Easebuzz, ePaisa, JusPay, Airpay, Atom Paynetz, Transecute. They vary in API depth, reconciliation tools, and pricing
2. How to Choose The Right Payment Gateway as per your Specific Need.
- Business Size & Stage:
- Early/SME: Instamojo, PayKun, Cashfree
- Growing: Razorpay, PayU, CCAvenue
- Enterprise/Bills: BillDesk
- Target Markets:
- Local: UPI-friendly gateways (Cashfree, Razorpay, Paytm)
- Global: PayPal, Stripe (Stripe Indian isn’t mainstream yet), CCAvenue
- Pricing Sensitivity:
- Lowest cost: Cashfree (1.75%), PayKun (~1.75%)
- Feature-rich but costlier: Razorpay, PayU, CCAvenue
- Integration & Tools:
- Developers: Razorpay, Cashfree
- Plug‑n‑play: Instamojo, Paytm
- Payout Speed:
- Fastest (24–48 hrs): Cashfree
- Standard (2–7 days): Razorpay, PayU, CCAvenue
3. Integration Tips
- Use multiple gateways to optimize payment success rates and redundancy
- Prioritize security compliance: PCI‑DSS, TokIntegration Tips
enPay, UPI certification. - Balance fees vs. features: advanced tools often cost more.
- Match your gateway with your transaction volume & average ticket size.
4. FAQ's
Cashfree is considered the cheapest, with zero setup fees and a flat 1.75% transaction fee on domestic payments.
Yes, top payment gateways comply with PCI DSS standards and use SSL encryption to ensure secure transactions.
Yes, many businesses integrate multiple gateways to offer customers more payment options and reduce dependency on one provider.
5. Final Recommendation
- Startups/SMEs: Begin with a free, easy gateway like Instamojo or Cashfree for simplicity and low cost.
- Growing e‑commerce: Add Razorpay or PayU for advanced features and analytics.
- International sellers: Pair CCAvenue with PayPal/Stripe for global reach.
- Enterprises/Bill‑centric: BillDesk offers stability and high-volume support
No single gateway fits all. Compare pricing, tech maturity, payout speed, and support based on your specific business goals.
Using 2–3 complementary gateways ensures optimal coverage and helps reduce transaction failures.
Article Contribution by: Sapna Garg