Best payment gateways in India for your E-Commerce website

  • Varun
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  • Published Date : 9 September , 2018
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  • Updated Date : 7 March , 2019
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    • 6 min read

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 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 or Amazon Web Services.

Here are the best payment gateways in India which can aid your e-commerce business.

Instamojo

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:

  • No Setup Fees
  • No Annual Maintenance cost
  • Simple API’s
  • Start collecting payments instantaneously.
  • Collect Payments using links via Whatsapp/Facebook/Twitter/SMS
  • Free Online store to sell items
  • On-Demand Payments App for Android phones to collect & track your payments

CC Avenue

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.

Citrus Pay

Incepted by Satyen Kothari and Jitendra Gupta, Citrus makes online payment quick and effective. We have signed up with Citrus Pay for our product, Influencer, but were quite disappointed with the onboarding process. Citrus Pay has a long list of documents and they first need a scanned copy of the documents and then a hard copy, all of them attested. This is actually more cumbersome than CCAVenue, which would send a hard copy of the documents. While it would be fine for an SBI to have such a bureaucratic process, one would have expected a company like Citrus Pay to have simplified the process.

Direcpay

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

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

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

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.

PayPal

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.

PayU India

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

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

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

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.

 

Razorpay

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.

Cashfree

Incepted in 2015, Cashfree is the country's only bulk payouts and payment company. With Cashfree, businesses and merchants can collect and disburse payments. This is done through an extensive range of payment options including debit and credit cards, net banking as well as through popular mobile wallets like PayTM, Airtel, MobiKwik, etc. Cashfree also supports PayPal, IMPS, UPI and NEFT transactions. The payment gateway also boasts the lowest transaction charges in the country - 1.95%

 

Here's a quick glance at the pricing:

Payment GatewaySetup Fee (INR)Commission Per TransactionPopularity (In India)
InstamojoFree2% + Rs.3High
CC Avenue Free - 40,0002% + Rs.3 High
Citrus PayFreeCustomModerate
DirecPayFreeCustomModerate
Google PayFreeCredit fee - 2.9%, Debit, bank transfer - FreeLow
PaypalFree2.2% - 2.9% + $0.30Moderate
PayU India4,900 – 29,9000.75% - 2.90%High
PayUBiz4,9002.95% - 3.70%High
PayTMFree1.99% + taxesHigh
MobiKwikOn request1.90% (+GST)  - 2.90%High
JuspayFreeCustomLow
BillDeskFreeCustomModerate
RazorpayFree2% - 3%High
CashfreeFree1.95% - 3.5% +Rs.7Moderate

 

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.




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Ferreira2019-01-17 < Reply

For Shopify, Instamojo does not appear from the drop down list available in India. What are your views on Cashfree and PayUMoney

Chirag Ved2018-05-15 < Reply

CCAvenue is by far the best and most seamless platform for payments. This is both for Customer as well as merchants.

Aditya Bajaj2017-11-07 < Reply

does google wallet work has anyone actually made a sale using that - I wonder why google never succeeds in this you would have thought they would have the best gateway by now

asaraf2017-10-17 < Reply

All above gateways can also be used for international customers too!

Ishita Lamba2017-10-11 < Reply

I have been using Instamojo as my payment gateway from last one year and i think it's best.

Manoj2017-09-02 < Reply

I Need This Payment Gateway Instamojo, Leading Ecommerce Payment Gateway

Nisha Malhotra2017-01-11 < Reply

I think Instamojo should be on this list too.

Team Social Beat2017-01-11 < Reply

Thanks for your inputs Nisha, we are infact updating our post so shall add the same.

Rishika Ahluwalia2016-12-02 < Reply

Thank you for sharing this information. Is there any platform which provides the facility of making payment through EMI without credit card?

PC Rao2016-11-22 < Reply

I am trying to integrate my webiste (word process) with CC Avenue. Support is pathetic. I am struggling from 4 days, support guys are not at all responding.

Satish2016-11-16 < Reply

Thank you for sharing this information. Right now, we are using CC Avenue, but now we want to change this with another one. Which will be the best?

Narayan2016-11-12 < Reply

I am using instamojo for my site successmindware.com since one year. I have found their service good and reliable.No set up fee or fine on dormant account

sandeep kumar sen2016-10-31 < Reply

How is instamojo? Is it cheapest and reliable?

Nivi2016-04-26 < Reply

For goverment websites which payment gateway will be best one.Am developing a website for agriculture related one .pls help

Atulya Sharma2015-09-28 < Reply

Thanks Varun! I am looking for best payment gateway but I am very confused in between CC Avenue and Paypal. Can you please tell me which one is best so that I can make the right selection.

Social Beat2015-10-24 < Reply

Hi Varun, for an ecommerce venture in India, it would have higher conversions with a recognized payment gateway like CC Avenue or PayU

Social Beat2015-09-28 < Reply

Paypal can only be used for international transactions so CC Avenue would be ideal for Indian transactions. You can posibbly keep both in case you are going to get domestic & international customers.

Anjali Sharma2015-09-07 < Reply

Thank you so much Varun for sharing such a informative post with us. As you have said it requires 2-3 weeks to evaluate vendors and complete the registration process for payment gateway integration. What kind of paper work is required if I am looking for payment gateway integration ???

Prashant2015-09-11 < Reply

As per RBI regulations, KYC documents and business registration documents are required.

Eric2015-09-05 < Reply

I am very amazed to see that Google wallet have very less popularity, where it is free to setup and also constant Commission fee.

Ashwin2015-08-03 < Reply

I am launching a ecommerce website and app. How long does it usually take to signup for the payment gateway?

Social Beat2015-08-03 < Reply

Hey Ashwin - Typically it takes 2-3 weeks to evaluate the vendors and complete the registration/integration process. Many of the larger payment gateways have a streamlined integration with Magento, Wordpress, Shopify etc but the registration/paperwork can take a few days.

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