Top Payment Gateways In India

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What is a Payment Gateway?

A payment gateway is an application that helps you process online payments. It connects the merchant’s website or mobile application with the bank. When you use a payment gateway to complete any transaction, the merchant’s website sends your payment information (debit/credit card or net banking details) to the gateway for verification. Then the payment gateway confirms the details with the bank and the amount is released from your bank account for transferring into the merchant’s bank account. 

The Benefits of a Payment Gateway

The benefits of using a payment gateway are:

  • Secure Transaction: The payment gateway provide secure transaction and protects both buyers and sellers from fraudulent activities.
  • Convenient: Online payment provides convenient online transactions without the need to go to any bank.
  • Faster Transaction Processing: Transactions can be processed on the site itself within a fraction of seconds.
  • Mobile Payment: It allows payment by using a mobile phone.
  • Less Transaction Failure: Redirecting customers to another external site for payment processing may lead to transaction failures.
  • Increase Customer Base: A digital payment system can increase your customer base more rapidly.
  • Less cart abandonment: Several redirections to an external site may lead to transaction failure, which results in more cart abandonment.
  • Recurring Billing: The payment gateway allow you to have an option of recurring billing.

Factors for considering the Right Payment Gateway

The payment gateway provides a fast and secure solution for online transactions. However, you might want to consider some factors when choosing the right payment gateway for your website and business.

  • Fees: Before setting up any type of payment gateway service, the fee structure of the company must be considered. Though there is no maintenance fee, some transaction fees are charged.
  • Mobile Optimisation: Most users would prefer a payment gateway that supports mobile payment, so make sure the gateway providers can integrate a payment solution for mobile-optimized sites.
  • User Interference: The payment gateway solution should be easy and user-friendly for both customers and merchants.
  • Billing Option: Some gateway providers offer automatic billing options while some do not offer recurring payment options. If you run a subscription type of service where your customers have the payment option for a weekly or monthly basis, then you must consider selecting a recurring payment option in your Payment Gateway.
  • Easy Integration: Your Payment gateway integration should be hassle-free with the minimum documentation process.
  • Settlement Period: The settlement period is the time period in which your payment will get credited or settled to your bank account. Some providers settle your money on a T+2 or T+3 days basis. That is, T is the Transaction days plus the number of days. The shorter the period, you will get settle your money in your account.
  • Reputation: Before selecting the Payment gateway, make sure the payment gateway is a known brand and has trustworthiness.
  • Support: Make sure the payment gateway you choose has 24×7 customer support needed.

Documents required for the Payment Gateway

Whether you want to integrate a payment gateway for individuals or for companies, you need to produce some documents. The documents required for the payment gateway vary with the type of business entity – individual, proprietorship, or company.

The gateway service provider also verifies your bank account by depositing some amount on the account and confirming the same on the gateway provider’s dashboard.

For Individual:

  • Copy of Pan Card.
  • Copy of Proof of Address (Driving License/ Adhaar Card/Voter ID/ Passport/Electricity Bill) duly signed.
  • Canceled cheque.

For Proprietorship:

  • Copy of Pan Card duly signed and stamped by the proprietor. If you have Pan in the name of Firm, then both personal and firm’s Pan needs to be uploaded.
  • Proof of Address (Driving License/ Adhaar Card/Voter ID/ Passport/Electricity Bill) duly signed and stamped.
  • Canceled cheque of the bank account. IFSC code and name should be printed.
  • Copy of Govt. Proof of the firm (Trade License issued by State/Central Govt) duly signed and stamped.

For Partnership:

  • Authorization letter for the Signing Authority duly signed and stamped by all partners on the Firm’s letterhead.
  • Copy of Partner’s Pan Card duly signed and stamped by Authorized signatories or partners.
  • Copy of Address Proof of the Authorized signatory (Driving License/ Voter ID/ Adhaar Card/ Passport) duly signed and stamped.
  • Copy of Company’s pan card duly signed and stamped by the Authorized signatory.
  • Copy of Govt. proof of the firm duly signed and stamped by Authorized signatory (Trade License, registration certificate, stamped by State/Central Govt).
  • Copy of Partnership deed duly signed and stamped by the Authorized signatory.
  • Copy of Certificate of Incorporation duly signed and stamped by all the partners.
  • Canceled cheque of the bank account. IFSC code and name should be printed.

For Private Limited Company:

  • Certificate of Incorporation duly signed & stamped by Authorised signatory.
  • Copy of PAN card, the name associated with the PAN should match with “Business Name”
  • GST Certificate, Provisional GST Certificate, Email Acknowledgement, or Declaration of GST Non- Enrollment.
  • Authorization letter for the Signing Authority duly signed and stamped by all Directors on the Firm’s letterhead.
  • Copy of Board Resolution on Company’s letterhead duly signed and stamped by all the Directors.
  • Copy of Govt. proof of the firm duly signed and stamped by Authorized signatory (Trade License, registration certificate, etc stamped by State/Central Govt).
  • KYC of Authorised signatory.
  • Shop Photo.
  • Canceled cheque of the bank account or Account Statement duly stamped by the bank. IFSC code and name should be printed.

After uploading all the documents, you then have to generate and Download the Merchant Agreement Declaration (MID) Form. The MID needs to be affixed with Stamp Paper. The Stamp Duty will be as per the Indian Stamp Act, 1899. In general, it should not be less than ₹100.

The authorized signatory has to sign all the pages of the Merchant Agreement Declaration Form along with the Firm’s stamp (if applicable). The signed MID form again has to upload to the payment gateway service provider’s website.

A current Account is a must to start a Payment Gateway service from any third-party gateway provider for the business entities other than in the name of an individual.

Here is the top payment gateway in India.

1) Razorpay Payment Gateway

Razorpay was founded in 2013 by an IIT Roorkee alumni, and it helps you manage the marketplace, automates bank transfers, collects recurring payments, and shares invoices.

It is easy to set up and has a simple interface.

It supports various payment methods including credit and debit cards, net banking, wallets, and UPI. It also supports international transactions. You can integrate it with your website for free.

You can easily collect domestic and international payments and access all payment modes like credit cards, debit cards, net banking, UPI, and wallets.

You can easily make your business online using the payment gateway service which provides a developer-friendly API and easy integration with all types of CMS.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: No.

Transaction Charges:  Zero MDR on UPI, Wallet, and Rupay Debit Card.

All other transactions 2.00% + GST

GST- 18% for all transactions.

Settlement: T+3 Business Days

For more details, check out Razorpay here.

2. Mobikwik Payment Gateway

Mobikwik is a popular top-class Payment Gateway service in India. It is mobile-friendly and optimized for any type of screen size. It supports diverse payment options like UPI, IMPS, Credit/Debit Card, Mobile Wallet, EMI pay later.

Mobikwik seamlessly integrates with many types of CMS like WordPress, OpenCart, PHP, Magento, and Java and offers two types of gateway service in India, one is for small businesses and startups and the other for the Custom Enterprise level.

Charges And Other Features:

Set Up Fee: Chargeable

Annual Maintenance Charges (AMC): Chargeable

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Indian Credit/Debit card, UPI, Wallet- 1.90%/Transaction + GST (18%)

For international credit cards,2.90%/Transaction+ GST(18%)

Settlement:  T+3 Days 

For more details, check out Mobikwik here.

3. PayPal Payment Gateway

PayPal is a well-known and trusted global brand and is the number one payment option preferred by freelancers and bloggers because of its easy interface and wide acceptance. It operates in more than 200 countries and supports nearly all currencies. 

It allows you to create a PayPal payment button on your website and for that, you need to have a business account that is free to create.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2.5% + Fixed fee of ₹3 for domestic cards. + GST (18%)

For international credit cards, 4.4 % + fixed fee based on the currency which is up to $3000.

Settlement: Immediately on PayPal Account, Auto withdrawal T+3 Days on Bank Transfer.

For more details, check out PayPal here.

3) Instamojo Payment Gateway

Instamojo is India’s largest on-demand payments and e-commerce platform that empowers over 15,00,000 micro-entrepreneurs, startups, and MSMEs, to start, manage, and grow their business online across mobile and web, with just a bank account and phone number, in a few minutes.

Instamojo is a free payment gateway in India with no setup and maintenance cost. It is 100% secure with integrated online payment gateway services and supports net banking, credit, debit cards, UPI, etc. You can download the Instamojo app via Playstore on your Android devices.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2%+ GST per transaction

Settlement: T+2 business days

For more details, check out Instamojo here.

4. Paytm Payment Gateway

Paytm provides a free merchant payment solution for small business owners and startups. To integrate the Paytm payment gateway, all you need is a Paytm Business Account.

It also provides business loans up to ₹3 lacs.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: No.

Transaction Charges:  Zero MDR on UPI, Wallet, and Rupay Debit Card.

All other transactions 1.99% + GST

GST- 18% for all transactions.

Settlement: T+7 Business Days

For more details, check out Paytm here.

5. PAYU Payment Gateway

PayU or PayuMoney is one of the well-known and best payment gateway service providers in India since 2011 and is headquartered in the Netherland. It is available in more than 18 countries Worldwide.

PayU has three types of plans- Standard, Silver, and Gold. There are no Set-Up charges for Standard Plan. The setup charges for Silver and Gold plans are ₹9,900 and ₹19,900 respectively.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges(AMC) : Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2%+ GST per transaction. (No MDR on Rupay and UPI payment)

Settlement: T+2 business days

For more details, check out PayU here.

6. CCAvenue Payment Gateway

CCAvenue is South Asia’s largest Payment Gateway solution and one of the best payment gateway providers in India. You can easily integrate the CCAvenue Shopping cart and start selling any products immediately. CCAvenue supports integration with all major CMS. Currently, it supports 27 foreign currencies.

It offers two types of gateway network- Startup Pro and Privilege. Start-Up Pro is completely free to set up.

Charges And Other Features

Set Up Fee: Zero

Annual Maintenance Charges( AMC): ₹1200 (waived for the 1st year)

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2% + GST (18%) (Domestic Cards) & 3% for International Cards (Zero for Rupay & UPI)

Multicurrency: 4.99%

Settlement: T+2 Business Days

For more details, check out CCAvenue here.

7. Bill Desk Payment Gateway

BillDesk was founded in 2000 and offers payment gateway solutions to merchants in financial services, retail, e-commerce, and more.

The setup is free yet merchants need to pay a transaction fee on every transaction.

The transaction charges differ depending on the modes of payment.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2%+ GST per transaction. (No MDR on Rupay and UPI payment)

Settlement: T+2 business days

For more detail check out Billdesk here.

8. Cashfree Payment Gateway

Cashfree is one of the cheapest payment gateways. It supports businesses to collect and distribute payments through different payment methods, including Visa, MasterCard, Rupay, UPI, IMPS, NEFT, PayTM & other wallets, Pay Later, and various EMI options. It offers the lowest TDR in India and has the fastest settlement cycle of 24 hours to 48 hours.  Cashfree is among the best free payment gateway for a website in India as it helps to analyze your website’s designation and offers pop-up, iframe, and flawless sign-out methods. Moreover, it can also work as an International Payment Gateway.

Charges And Other Features

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 1.95% – 3% with Zero MDR on UPI, Wallet, and Rupay Debit Card.

Settlement: T+2 Business Days

For more details, check out Cashfree here.

9. Citrus Pay Payment Gateway

Citrus Pay is a secure payment gateway that offers a wide range of payment options including major credit cards like MasterCard, American Express, and Visa.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

Settlement: T+3 Business Days

For more details, check out Citrus Pay here.

10. Payoneer Payment Gateway

Payoneer is a payment gateway that allows you to receive mass payments from marketplaces and customers all around the globe. It is a swift,  secure, and cheap gateway that gives all the solutions for startups. It gives you an option of automatic fund transfer to your bank account at competitive rates. Compared to other gateways, Payoneer charges lower transaction fees. It supports around 200 countries and 150 local currencies. Once you get your funds from Payoneer, you can channel your funds to your bank account and withdraw them in your local currency.

Charges And Other Features

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

Settlement: T+3 Business Days

For more details, check out Payoneer here.

11. DirecPay Payment Gateway

DirecPay is part of the Times Group. It is one of the most reliable payment gateways in India. It supports different types of debit and credit cards. Business owners can integrate the payment gateway on their website and start receiving mobile payments as well as payments made using net banking. 

It enables accepting payments through cash, cheques, demand draft, and online payments through different payment modes such as debit cards, credit cards, and internet banking.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC) : Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2%+ GST per transaction. (No MDR on Rupay and UPI payment)

Settlement: T+2 business days

For more details, check out DirecPay here.

12. Juspay Payment Gateway

Started in 2012, Juspay is a secure payment gateway known for offering Secure 1-Click and express checkout features.

It automatically processes OTP from SMS and efficiently manages the network to lessen the loading time of a page.

Charges And Other Features:

Set Up Fee: Zero

Annual Maintenance Charges (AMC): Zero

Withdrawal Fees: Zero

International Transaction: Yes

Transaction Charges: Flat 2%+ GST per transaction. (No MDR on Rupay and UPI payment)

Settlement: T+2 business days

For more details, check out JusPay here.

Conclusion on best payment gateway in India

All the payment gateway charge no maintenance fee and they are competing to give the best experience to their customers.

For seamless secure transactions and an easy interface, you can opt for Razorpay which also support international transaction and have very few transaction failure rate.

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