Top Payment Gateways for Indian Startups & Small Businesses

Choosing the right payment gateway is like having a reliable cash register for your online business. It makes getting paid smooth, secure, and gives your customers the payment options they expect. With India leading the way in digital payments, having a solid gateway in place is crucial for success. Let’s explore some of the top options to find the perfect fit for your business.

1. What are Payment Gateways?

In a nutshell, payment gateways act as the bridge between your online store or website and your bank account. They handle the technical magic of securely processing customer payments and transferring those funds to you. A customer swipes their card, you get paid! Of course, a good payment gateway does a lot more to keep transactions safe. 

2. Key Factors to Consider

When selecting a payment gateway for your business, it’s crucial to consider several key factors that can impact both your operations and customer satisfaction. Here’s a detailed look at each of these considerations:

a) Transaction Fees

  • Percentage Fees: Some gateways charge a percentage of each transaction, which can vary based on the transaction amount or monthly sales volume.
  • Flat Rate Fees: Others may charge a flat fee per transaction, regardless of the transaction size.
  • Additional Fees: Be aware of other potential fees, such as setup fees, monthly fees, or chargeback fees, which can add to the overall cost.

b) Ease of Setup and User Experience

  • Setup Process: Look for a gateway with a straightforward setup process that doesn’t require extensive technical knowledge.
  • User Interface: A clean and intuitive user interface is important for both you and your customers, ensuring smooth transactions and management.

c) Accepted Payment Methods

  • Cards: Ensure the gateway accepts all major credit and debit cards, as these are commonly used by customers.
  • Digital Wallets: With the rise of mobile payments, support for digital wallets like Google Pay or Apple Pay can be a significant advantage.

d) International Transaction Support

  • Currency Support: If you serve international customers, check if the gateway supports multiple currencies and what the conversion fees are.
  • Global Reach: A gateway with a wide international reach can help you expand your customer base beyond local boundaries.

e) Recurring Billing Options

  • Subscriptions: If your business model includes subscriptions or memberships, you’ll need a gateway that supports recurring billing.
  • Automation: Automated billing can save time and reduce errors, providing a better experience for both you and your customers.

f) Fraud Prevention Tools

  • Security Measures: Robust security measures, such as encryption and tokenization, are essential to protect sensitive data.
  • Fraud Detection: Advanced fraud detection tools can help prevent unauthorized transactions and reduce the risk of chargebacks.

g) Customer Service Responsiveness

  • Support Availability: Reliable customer support that’s available when you need it can make a big difference, especially during critical situations.
  • Resources: Access to comprehensive resources, such as FAQs, tutorials, and community forums, can help you resolve issues quickly.

By carefully evaluating these factors, you can choose a payment gateway that not only meets your current needs but also supports the growth and success of your business in the long term. 

3. Top Payment Gateways 

Now, let’s dive into the standouts. Research these in-depth to make your decision:

a) Razorpay

Razorpay is a fintech company that has revolutionized online payments in India. It offers a fast, affordable, and secure way for businesses to accept and disburse payments online.


  • User-Friendly Interface: Razorpay provides a smooth user experience with an intuitive dashboard.
  • Multiple Payment Options: It supports various payment methods, including UPI, credit/debit cards, net banking, and wallets.
  • Strong Security: Implements stringent security protocols to protect transaction data.


  • Cost: While competitive, fees can add up for smaller businesses.
  • Customization: Some users may find customization options limited.

Integration: Razorpay offers easy integration with popular e-commerce platforms like Magento, WordPress, and Shopify, making it a versatile choice for online businesses.

Best Suited For: It’s ideal for startups and SMEs looking for a reliable, multi-functional payment gateway that’s easy to set up and use.

b) PayU

PayU is a global payment services provider with a strong presence in India, offering a wide range of payment processing services to businesses of all sizes.


  • Extensive Payment Methods: Supports over 450 payment methods, catering to a global customer base.
  • Fraud Protection: Features a robust fraud management system to secure online transactions.


  • Complexity: Some users may find the platform more complex than others.
  • International Fees: Currency conversion and international transaction fees may be higher.

Integration: PayU integrates seamlessly with e-commerce platforms such as WooCommerce, Magento, and Shopify, simplifying the payment process for online merchants.

Best Suited For: PayU is well-suited for businesses that require a wide range of payment options and have a significant international customer base.

c) PayPal

PayPal is a global leader in online payment solutions, known for its ease of use and wide acceptance both online and offline. It’s a go-to choice for businesses and consumers alike, offering a secure way to make transactions without sharing financial details.


  • Widely Accepted: PayPal is recognized and trusted by customers worldwide, which can increase conversion rates for businesses.
  • Multiple Payment Options: It accepts various forms of payment, including credit cards, Venmo, and even cryptocurrency.
  • E-commerce Features: PayPal provides a range of e-commerce features to support online businesses.


  • POS Features: PayPal may lack some point-of-sale features compared to specialized POS systems.
  • International Fees: There are extra fees for international credit card transactions, which could be a concern for businesses with a global customer base.
  • Chargeback Fee: A chargeback fee is applied, which can be a downside for businesses with high volumes of transactions.

Integration: PayPal offers integration with a multitude of e-commerce platforms, making it a flexible option for businesses to accept payments online. The integration process is typically straightforward, with plenty of support available.

Best Suited For: PayPal is ideal for businesses of all sizes that require a reliable and recognizable payment gateway. It’s particularly beneficial for those with an international customer base, given its widespread recognition.

d) Paytm

Paytm is one of India’s leading payment gateways and a pioneer in the digital payment space. It offers a wide range of services, including mobile payments, online shopping, and financial services.


  • Widely Recognized: Paytm is accepted by a vast number of merchants, both online and offline, across India.
  • Versatile Integration: Paytm provides plugins for easy integration with major e-commerce platforms like Shopify, WooCommerce, Magento, and more.


  • Complexity: Some users may find the platform more complex than others, especially when dealing with various services offered by Paytm.
  • Transaction Charges: Like most payment gateways, Paytm charges fees for transactions, which businesses need to account for.

Integration: Paytm’s integration process is designed to be user-friendly, with plugins available for all major e-commerce platforms. This allows for hassle-free payment collection without the need for extensive coding.

Best Suited For: Paytm is best suited for businesses operating within India, looking for a comprehensive payment solution that is widely recognized and easy to integrate with their online store.

e) Bill Desk

Bill Desk is a prominent player in India’s online payment processing ecosystem. It has been facilitating electronic payments and digital commerce for over a decade, offering integrated payment solutions to businesses, financial institutions, and governments.


  • Integrated Solutions: Bill Desk supports over 150 payment methods, providing a versatile platform for accepting payments on websites and apps.
  • Direct Connections: It ensures greater reliability and an improved user experience with direct integrations across banks, card networks, and wallets.
  • Recurring Payment Solutions: The platform enables customers to set up recurring payments using various methods, making it convenient for subscription-based services.


  • Complexity: Some users may find the platform complex, especially when dealing with the wide array of services offered.
  • Customer Service: While Bill Desk is generally reliable, there have been instances where users reported delays in customer service response times.

Integration: Bill Desk offers secure APIs that are easy to implement, providing the required flexibility and control for integrating with websites or e-commerce platforms.

Best Suited For: Bill Desk is ideal for large businesses and enterprises that require a robust, full-stack platform for handling a high volume of transactions and various payment methods.

f) CCAvenue

CCAvenue is one of the largest payment gateways in India, offering a wide range of payment options and catering to a diverse clientele, including small and large businesses.


  • Wide Range of Payment Options: CCAvenue provides a plethora of payment methods, making it a one-stop solution for businesses.
  • Ease of Integration: The platform offers step-by-step instructions for integrating with popular e-commerce platforms like WooCommerce, Magento, and Shopify.


  • Dispute Resolution: Some users have reported that the space provided for contesting disputes is limited, necessitating additional communication via email.
  • Pricing: There are various plans and pricing, which may be a consideration for businesses looking for cost-effective solutions.

Integration: CCAvenue allows for straightforward integration with e-commerce platforms, providing API keys and credentials for a seamless setup process.

Best Suited For: CCAvenue is well-suited for businesses of all sizes that need a payment gateway with a wide array of payment options and easy integration with e-commerce platforms.

Both Bill Desk and CCAvenue offer comprehensive payment solutions with their own set of advantages and are capable of catering to the needs of different business models and sizes.

g) CashFree

CashFree is a leading payment gateway in India, catering to the needs of e-commerce and direct-to-consumer businesses. It’s recognized for its impressive suite of features, high success rates, and commitment to customer satisfaction.


  • Wide Range of Payment Options: With over 120 payment options, CashFree caters to a diverse customer base.
  • Swift Settlements: Offers instant settlements, even on holidays, ensuring businesses have quick access to funds.
  • Global Expansion Support: Facilitates international payments, showcasing products in over 100 foreign currencies with settlements in INR within two days.


  • Complexity for New Users: The wide array of features and options might be overwhelming for new users or small businesses.
  • Customer Support: While generally reliable, there have been instances of delayed response times in customer support.

Integration: CashFree provides seamless integration with websites and e-commerce platforms, offering a smooth checkout experience with branding options.

Best Suited For: It’s best suited for e-commerce and D2C businesses looking for a comprehensive payment solution with a focus on growth and customer satisfaction.

h) Instamojo

Instamojo is a popular payment gateway in India, known for its fast service and easy integration. It offers a variety of offerings, including robust payment gateway solutions.


  • Ease of Use: Instamojo is praised for its user-friendly platform and smooth customer support.
  • Versatile Offerings: Provides a wide range of services beyond payment processing, catering to different business needs.


  • Limited Advanced Features: While great for basic use, it may lack some advanced features needed by larger enterprises.
  • Dispute Resolution: Some users have reported challenges with dispute resolution and the need for additional communication.

Integration: Instamojo is known for its fast and easy integration with e-commerce brands, offering a straightforward setup process for businesses.

Best Suited For: Instamojo is ideal for initial-level entrepreneurs, bloggers, and startups who need a simple yet effective payment gateway.

i) Stripe

Stripe is a highly regarded payment processor known for its advanced development tools and clear pricing. It serves big-name clients and is valued for its ability to facilitate business online, especially for subscription-based models.


  • Subscription Features: Stripe offers powerful tools for managing subscription payments.
  • Marketplace Support: It supports marketplaces and is suitable for international merchants.
  • Transparent Pricing: The flat-rate pricing is straightforward, avoiding confusion.
  • Development Tools: Provides advanced customization options for developers.


  • Limited High-Risk Support: Not all high-risk industries and countries are supported.
  • Direct Phone Support: There’s no direct phone line for support.

Integration: Stripe integrates with a variety of e-commerce website builders like Shopify, BigCommerce, and Wix, as well as CRM and invoicing platforms, making it a versatile option for businesses.

Best Suited For: Stripe is ideal for businesses of all sizes that need a robust payment processing solution with strong support for subscriptions and marketplaces.

j) Easebuzz

About the Brand: Easebuzz is a digital payment solution that helps small businesses digitize payments. It’s designed to address complex business scenarios and reduce high-cost centers associated with financial operations.


  • Plug-and-Play APIs: Offers easy-to-integrate, developer-friendly APIs.
  • Unified Dashboard: Provides a real-time view of transaction data and reports.
  • High Success Rates: Ensures a seamless checkout experience with higher success rates.
  • Security: PCI DSS Level-1 compliant for secure online payment processing.


  • New Business Complexity: Early-stage companies may face challenges as they grow and integrate complex financial operations.

Integration: Easebuzz partners with platforms like Wix for seamless payment acceptance, indicating ease of integration with websites and e-commerce stores.

Best Suited For: Easebuzz is suitable for small businesses and early-stage growth companies that require a straightforward digital payment solution.

k) PhonePe (Recently Launched)

PhonePe is a dynamic player in the digital payments space in India. It started as a mobile payments app allowing users to transfer money instantly using just a mobile number. Over time, it has evolved into a comprehensive payment solution, catering to individual and business needs alike.


  • User-Friendly: PhonePe is known for its user-friendly interface, making it simple for users to make payments or transfer funds.
  • Versatile Payment Options: It supports UPI, wallet, and card payments, providing flexibility for various transaction types.
  • Rewards System: Users can earn rewards in the form of cashback and points, similar to other apps like Paytm.


  • Security Features: Some users feel the app could improve by adding options for secure login using PIN or password.
  • Customer Service: While generally good, there are instances where users have faced delays in resolving issues.

Integration with Websites or E-commerce Platforms: PhonePe offers seamless integration with e-commerce platforms such as Shopify, providing merchants with a smooth payment collection process. It’s designed to be easy to set up, ensuring that businesses can start accepting payments quickly.

Best Suited For: PhonePe is well-suited for both individuals and businesses in India looking for a straightforward, reliable, and versatile payment solution. It’s particularly beneficial for small to medium-sized businesses that want to offer multiple payment options to their customers.


Choosing the right payment gateway is more than a business decision; it’s a step towards building lasting customer relationships. We’ve found that the gateways listed above have stood the test of time and technology, proving their mettle in the Indian market. Now, it’s your turn to pick the one that fits your business like a glove and embark on a journey of seamless transactions.

Ready to unlock the door to endless possibilities? Explore these gateways and take your business to new heights today.

by Team Brand Sewa

Last Updated on April 30, 2024

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