No matter how great your business idea is or how efficiently your e-commerce store may look and function, achieving your ROI goals depends on the ease of transaction experienced by a customer. A payment gateway or a mobile wallet is a powerful way to ensure hassle-free payments and to reassure the visitors of your e-commerce store about your trustworthiness.
In short, a payment gateway is an e-commerce element that allows a customer or merchant to use internet transactions via credit or debit cards, securely. A bad payment gateway results in bad payment options, ultimately leading to a decline in the total sales. Your server can also pose a challenge in having a smooth payment gateway. To counter this, we usually use Bluehost, BigRock or Amazon Web Services.
Here are the best payment gateways in India which can aid your e-commerce business.
Razorpay is a relatively new member to the payments ecosystem in India and is backed by notable Silicon Valley investors and mentors. Founded by an IIT Roorkee alumni, Razorpay aims to revolutionize the online payments process through secure and easy-to-integrate APIs, which makes it easy for businesses to integrate and process transactions. It is an India-focused company that offers 24*7 customer support and a simplified experience to the customers.
Instamojo powers more than over 2,20,000 small businesses in India is one of the largest multi payments networks in India. One thing that sets them apart is the 2 mins set up and it is completely free. Set up Instamojo for free today!
Here are some key highlight and features about Instamojo:
Launched in 2001, CC Avenue is one of the oldest as well as one of the biggest payment gateway providers in India. CC Avenue offers 200+ payment options including major credit cards like Visa, Mastercard, Amex, DIner's CLub, etc. It also includes other payment options like Multiple Currency Processing, Retry Availability & Customization, Audit, Analytics and a large window for active users. If your website is already live, you can integrate the CC Avenue payment gateway for free.
Direcpay is an arm of the Times Group. It is essentially the safest payment gateway in India. The PCI DSS certified and Norton Secure gateway offers easy integration to e-commerce business, a simple registration and a flexible payment process, besides providing EMI options. However, Direcpay requires 5 days for account activation, after the documents are verified by concerned authorities.
Google pay (formerly Google Wallet) is an online payment and system and digital wallet platform. It allows in-app and tap-to-pay purchases on all mobile devices. As of May 218, Google Pay also supports boarding passes and event tickets. Google Pay work on NFC or Near Field Communication to initiate transactions and transfer funds to the retailer. All you need to do is download the Google Pay app, take a picture of your debit or credit card or enter the information manually. As most of the digital audience has gone mobile, Google Pay is a prudent gateway for an e-commerce business.
Juspay was founded in 2012 with an aim to redefine online payments by providing 1-click payments for the web and mobile. However, like the other mentions on this list, Juspay is not a payment gateway, although it does work with any gateway or aggregator with no interference in Merchant-PG relations. Juspay processes more than 4 million transactions monthly for a number of notable merchants like MakeMyTrip, Yatra, Amazon, Snapdeal, BookMyShow, MobiKwik, Freecharge, etc.
Billdesk was incepted in 2000 in Mumbai and provides payment gateway solutions to customers and merchants in e-commerce, retail, financial services, etc. While the setup is free, merchants have to pay a commission charge on each transaction and the amount differs across modes of payment.
Processing close to 8 million payments every day, PayPal is one of the most widely used payment gateways in the world. Request and transfer of payments are very easy, as the platform has over 200 million active accounts across 200 markets, compatible with 100 currencies around the world. PayPal also offers perks like uploading cheques through your smartphone’s camera and completion of transactions without having to exit the website. PayPal is a natural choice for Indian e-commerce businesses that have a large number of international customers.
Marking an impressive conversion rate of 12% and worldwide presence, PayU is one of the biggest payment gateways in India. With noteworthy customer service, PayU has roped in e-commerce biggies like Jabong and Snapdeal into their clientele. The platform offers four pricing packages that vary in covering aspects like Risk Management System, Multi-Currency Gateway, Mobile optimised payment page, IVR Payment, Store Card Feature and Payment Analytics.
PayUBiz is a part of Naspers and is a $25 billion media and internet company that is listed in the London and Johannesburg stock exchanges. This payment gateway is used by over 70 e-commerce companies including Jabong, Snapdeal, Ola, Bookmyshow, Cleartrip, Zomato, etc.
MobiKwik is another popular payment gateway in India and it offers services for online debit and credit cards and other internet baking processing transactions. It takes only two days to set up an account with MobiKwik and they are compatible with Android, iOS and Windows platforms. In addition, MobiKwik is also a mobile phone and digital wallet. You can check out our blog on the top 10 mobile wallets in India.
PayTM currently holds the top position for India's most popular payment gateway. It is a semi-closed wallet, approved by the RBI and offer payment solutions to over 7 million merchants. PayTM is available for download across all major platforms and allows its customers to make payments from debit and credit cards, bank accounts and digital credit. PayTM Cash is India's largest digital wallet with over 15 million active users.
| Payment Gateway | Setup Fee (INR) | Commission Per Transaction | Popularity (In India) |
| Instamojo | Free | 2% + Rs.3 | High |
| CC Avenue | Free - 40,000 | 2% + Rs.3 | High |
| Citrus Pay | Free | Custom | Moderate |
| DirecPay | Free | Custom | Moderate |
| Google Pay | Free | Credit fee - 2.9%, Debit, bank transfer - Free | Low |
| Paypal | Free | 2.2% - 2.9% + $0.30 | Moderate |
| PayU India | 4,900 – 29,900 | 0.75% - 2.90% | High |
| PayUBiz | 4,900 | 2.95% - 3.70% | High |
| PayTM | Free | 1.99% + taxes | High |
| MobiKwik | On request | 1.90% (+GST) - 2.90% | High |
| Juspay | Free | Custom | Low |
| BillDesk | Free | Custom | Moderate |
| Razorpay | Free | 2% - 3% | High |
| Cashfree | Free | 1.95% - 3.5% +Rs.7 | Moderate |
Your choice between the above-mentioned payment gateways may vary depending on your e-commerce business field, size, and location. Though all of them have the capacity to adapt to various requirements, we would like you to share your personal experiences with payment gateway providers in India. Let us know if we have missed out anything, or which one is the best according to you.