Best Payment Gateways in India (2025): In the era of a fast-moving digital economy, choosing the correct payment gateway is a crucial decision for any business willing to receive electronic payments. With the rise of e-commerce and digital transactions in India, selecting a suitable payment gateway can significantly impact a business’s success.
This blog covers the top payment gateways in India, including their features, benefits, fees, and which businesses they suit best. Additionally, we provide a quick comparison between each gateway to help you make an informed decision.
What is a Payment Gateway?
A payment gateway is a technology that enables online transactions by acting as an intermediary between customers and merchants. It securely processes transaction details, ensuring smooth and secure execution.
Why Do You Need a Payment Gateway in India?
With a rapidly changing digital landscape, more consumers in India prefer online payment systems over cash. A reliable payment gateway is essential for:
- Secure Transactions: Safeguarding customer data.
- Convenience: Offering multiple payment methods enhances the user experience.
- Efficient Payment Processing: Faster transaction time improves customer satisfaction.
Key Features to Look for in a Payment Gateway
When choosing a payment gateway, here are the essential features to consider:
- Security: Compliance with PCI-DSS standards ensures safe transactions.
- Payment Options: Supports credit cards, debit cards, UPI, net banking, wallets, and more.
- Customer Support: Reliable and accessible customer support is crucial for troubleshooting issues.
- Transaction Fees: Transparent and competitive fees are important for cost-effectiveness.
- Integration Flexibility: Seamless integration with your website or app is essential.
Top Payment Gateways in India
1. Razorpay
Overview:
Razorpay is one of India’s most popular payment gateways, praised for its easy integration and comprehensive payment solutions. It supports various payment options, including cards, UPI, net banking, and wallets.
Key Features:
- Real-time tracking of payments
- Instant refunds and settlements
- Multi-currency support
Transaction Fees:
2% on domestic cards, net banking, and UPI; 3% on international cards
2. Paytm
Overview:
Paytm is a leading payment gateway widely adopted for mobile-based transactions. It integrates seamlessly with websites and mobile apps, with millions of users across India.
Key Features:
- No setup fees
- Access to payments through Paytm Wallet and UPI
- Advanced fraud detection
Transaction Fees:
1.99% for cards, net banking, and UPI
3. PhonePe
Overview:
PhonePe has quickly emerged as a trusted payment gateway in India, known for its extensive mobile transaction options and suitability for small and medium businesses.
Key Features:
- Integration with UPI, mobile wallets, and cards
- Simplified refund processes
- Reliable customer support
Transaction Fees:
Customizable based on transaction volume
4. CC Avenue
Overview:
CC Avenue is one of the largest omnichannel payment gateways in India, offering a wide range of payment options and robust security features, making it popular among large enterprises.
Key Features:
- Multi-currency processing
- Advanced analytics dashboard
- Fast integration
Transaction Fees:
2% to 3%, depending on transaction type
5. Instamojo
Overview:
Instamojo is a favored choice among small and medium businesses, providing easy-to-use payment solutions along with additional features like a digital storefront.
Key Features:
- Instant setup and activation
- No monthly maintenance fees
- Access to more business tools
Transaction Fees:
2% + ₹3 per transaction
6. PayU
Overview:
With a flexible payment gateway, PayU supports various payment modes, including local payment options via UPI and wallets, making it suitable for businesses of all sizes.
Key Features:
- PCI-DSS compliance for enhanced security
- Customized payment pages
- Support for international payments
Transaction Fees:
2% for domestic payments, 3% for international transactions
7. Cashfree
Overview:
Cashfree is recognized for its fast and efficient transaction processing, making it ideal for businesses with high transaction volumes.
Key Features:
- Direct bank payouts
- Bulk payout for businesses
- High success rate for UPI
Transaction Fees:
1.75% per transaction
8. BillDesk
Overview:
BillDesk is a highly reliable payment gateway with a strong reputation for handling high-volume transactions. It’s widely used by government organizations and large enterprises in India.
Key Features:
- Bulk payments and recurring billing
- Real-time alerts
- Multi-currency support
Transaction Fees:
Customizable as per business requirements
9. Atom Technologies
Overview:
Atom Technologies provides secure and versatile payment solutions, especially suited for mobile transactions.
Key Features:
- Real-time reporting and analytics
- EMI options
- Customizable payment solutions
Transaction Fees:
2% to 2.5%, depending on transaction type
10. PayPal India
Overview:
Known worldwide for international transactions, PayPal has a substantial presence in India, offering convenient cross-border payment solutions.
Key Features:
- Multi-currency support
- High security for international payments
- Trusted by global users
Transaction Fees:
4.4% + fixed fee for cross-border transactions
Comparison Table of Top Payment Gateways
| Payment Gateway | Available Payment Options | Security | Transaction Fees | Best Suited For |
|---|---|---|---|---|
| Razorpay | Cards, UPI, Net Banking, Wallets | High | 2%-3% | SMEs, Large Businesses |
| Paytm | Wallet, Cards, UPI | High | 1.99% | Mobile Apps, E-commerce |
| PhonePe | UPI, Wallet, Cards | High | Customizable | Small and Medium Businesses |
| CC Avenue | Cards, Net Banking, EMI | High | 2%-3% | Enterprises, E-commerce |
| Instamojo | Cards, Net Banking, UPI | High | 2% + ₹3 | Small Businesses |
| PayU | Cards, UPI, Wallets | High | 2%-3% | SMEs, International Sales |
| Cashfree | UPI, Cards, Net Banking | High | 1.75% | High-volume Businesses |
| BillDesk | Cards, Net Banking, Wallets | High | Custom | Government, Large Enterprises |
| Atom | Cards, UPI, EMI | High | 2%-2.5% | Mobile-first Businesses |
| PayPal | International Cards, Wallet | High | 4.4% + Fee | International Sales |
Factors to Consider When Choosing a Payment Gateway in India
- Ease of Integration: Ensure the gateway supports plugins compatible with your platforms or offers searchable APIs.
- Customer Support: Choose a provider with dependable support for quick and smooth issue resolution.
- Transaction Fees: If your business involves many transactions, consider the long-term costs carefully.
- Security and Compliance: Verify that the gateway complies with industry security protocols.
- Settlement Time: Faster settlement times improve cash flow.
Benefits of Using a Payment Gateway in India
- Enhanced Security: Ensures customer data protection and builds trust.
- Increased Sales: Flexibility in payment options caters to a larger customer base.
- Operational Efficiency: Reduces manual payment processing, saving time.
Common Issues with Payment Gateways in India
- High Transaction Fees: Certain gateways may charge high fees, impacting profitability.
- Integration Issues: Compatibility with existing systems can sometimes be a challenge.
- Fraud Risks: Some gateways, despite security measures, still encounter fraud attempts.
Future of Indian Payment Gateways
- UPI and Digital Wallet Expansion: UPI’s popularity will likely lead to more innovations.
- AI and Machine Learning in Fraud Prevention: Improved security is expected to increase customer trust.
- Heightened Emphasis on SMEs: More gateways are expected to create offerings tailored to small business needs.
Conclusion
Selecting the right payment gateway in India is essential for any online business. Each payment gateway has its strengths and caters to different business needs. Analyze your business requirements, transaction volume, and customer preferences to choose the best option. With the right payment gateway, you can enhance the customer experience, secure transactions, and drive growth for your business.