20 Best Payment Gateways in India for Businesses

Online payment gateways are becoming increasingly important for businesses. That’s because India is moving rather rapidly towards a cashless economy. Furthermore, people now prefer using mobile payment apps, mobile wallets, credit cards and debit cards.

Best Payment Gateways

Cashless economy became imperative in 2020 during the Covid-19 pandemic. Consumers, wary of accepting currency notes for fear of contracting the virus, swiftly turned to payment gateways and payment apps.

If you’re a business owner and want to choose the best online payment gateway, look no further. Here’s our guide to the best online payment solutions in India and how to choose the best online payment processor.

Let’s begin by understanding what’re exactly online payment gateways?

Understanding Online Payment Gateways

An online payment gateway works like a cashier between a merchant and the customer. It is connected to the bank account of the merchant.

Here’re some of the functions that an online payment solution performs:

  • Calculates the final amount of your bill by adding taxes, delivery and other charges as well as discount.
  • Offers the customer various options to pay such as net banking, credit card, debit card, Cash-On-Delivery and Unified Payment Interface among others.
  • Maintains records of various payments including the amount, payment mode, name of the customer and location.
  • Processes refunds and cashbacks where applicable.
  • Credits the money directly to the merchant’s bank.
  • Debits money to refund a customer upon authorization from the merchant.
  • Automatically generates an invoice for customers.
  • In some cases, acts as a medium between the customer, merchant and supplier such as with dropshipping trade.

Since a payment gateway plays such an important role in buying and selling, it’s important that you select one carefully.

Here’s how to select a superb payment gateway for your business.

How to Choose the Best Payment Gateway

Obviously, you’ll have to select a payment gateway that best suits the needs of your business. Here're some of the top things you could consider before opting for a payment gateway.

  • Easy integration with the merchant’s website and fast interface with the merchant’s bank.
  • Provides the highest number of options for clients to pay.
  • Immediate credit of customer payments to your bank account.
  • Acceptance of foreign currencies and foreign credit cards and debit cards.
  • Capacity to generate invoice immediately.
  • Email a receipt instantly to the customer confirming the payment.
  • Send a payment alert to the marketing or sales department about the order.
  • Generate refunds and cashbacks where necessary.
  • If necessary, offer Equal Monthly Instalments to customers and send alerts.
  • Maintain every payment record.

Above all, the cost of using the Payment Gateway should be affordable to the merchant. Because, every payment gateway provider charges a fee per transaction.

Top 20 Payment Gateways

Based on these parameters, here’s our curated list of top 20 payment gateways in India. Some of the features we mention may differ as owners of these payment gateways continue to upgrade their products.

1. CC Avenue

CC Avenue is perhaps the most popular payment gateway in India. It has a long, impressive list of users.

CC Avenue has also won the Superbrand Award India for the year 2019-2020. CC Avenue payment gateway accepts multiple currencies, every known brand of credit and debit card and easily integrates with foreign and Indian banks for merchants. It’s simple to use.

CC Avenue comes from Infibeam Avenues Ltd, a company listed on India’s stock markets.

2. Razorpay

Razorpay is the second most popular payment gateway in India. It allows merchants to accept payments from wallets, Unified Payments Interface, banks, RuPay and other debit cards, net banking and also payment banks such as Airtel, Jio and NSDL.

Razorpay is also used by Non-Banking Financial Companies to accept insurance premiums, subscribe to Mutual Funds, deposit money in stock-trading accounts and other purposes. This payment gateway comes from an eponymous company.

3. BillDesk

If you’re paying for your passport or even utilities bills online, it’s common to see the payments handled by BillDesk. This payment gateway has been around since the year 2000 but as the eponymous company adds newer features, it’s becoming widely popular.

BillDesk is trusted by large companies and banks as well as a few government organizations as its preferred payment gateway.

4. Amazon Pay

Amazon payment gateway is gradually edging itself to the topmost position. Understandably, the company has all the technology and finances it requires.

Amazon Pay was once only a sort of wallet that allowed shoppers to pay for goods they buy on the online store.

Now Amazon Pay is gradually graduating as a full-fledged payment gateway by offering various kinds of payment methods and above all, EMI options too.

5. Citrus

Citrus is a very commonly used payment gateway in India. The company also has a wallet Citrus Cash and an online bills payment system, Citrus Cube.

You can find several payment gateway providers, utilities companies and online stores use Citrus. It is renowned for its high speed transactions.

Citrus now serves over 50,000 small and medium merchants across India and is also available as app for traders.

6. PayUBiz India

PayUBiz is used by several banks in India for receiving payments on behalf of merchants that hold accounts. In fact, PayUBiz also allows banks to offer a co-branded payments gateway. PayUBiz is very useful for high value transactions.

Other than Visa, MasterCard, Discover, American Express, Diners Club and JCB branded credit and debit cards, PayUBiz also accepts payments in some 15 currencies.

A lot of renowned online stores such as Jabong.com and Myntra.com among others use this payment gateway.

7. Paytm

The pioneer of India’s mobile wallet, Paytm now also offers a fantastic payment gateway in India. Known as Paytm for Business, a lot of companies including Patanjali Ayurved, among others, use Paytm payments gateway.

It’s very popular among avid Paytm users who wish to use their Paytm wallets to make payments for bills or recharge mobiles. They also offer discounts on shopping for using their payments gateway.

8. MobiKwik

MobiKwik began as an app and website that offers quick and discounted recharge for mobile phone accounts. Over the years, MobiKwik has developed into a full-fledged payment gateway.

You can integrate MobiKwik with almost every bank that operates in India and every payment method.

It also integrates well with all mobile wallets, banking apps and Unified Payments Interface systems. Companies including Reliance Retail are increasingly using MobiKwik for their online clients.

9. Instamojo

Instamojo is a superb payment gateway for buying apps and selling your products, online tickets and other such digital stuff. It is a pioneer and leader of sorts in its own field.

If you’re paying for food through delivery apps, buying cinema tickets or paying for software through mobile, payments will most likely be processed by Instamojo only.

10. Atom Paynetz

Atom claims it offers over 250 payment options to shoppers and integrates with over 50 Indian banks. Owned and operated by an eponymous company, Atom is said to be one of the fastest growing payment gateways in India.

It is known for is speed and efficiency. Meaning, payments made over Atom are safe and secure. It also offers a revise payment feature.

11. PayUMoney

PayUMoney is a fast growing payment gateway in India. Currently it has about 10,000 merchant users. The payment gateway is known for its high speed transactions.

It sends an alert to the shopper’s mobile whenever a payment is being processed through PayUMoney. This means, there are lesser chances of anyone committing a fraud when a merchant uses this payment gateway.

12. DirecPay

A rather simple but safe and reliable payment gateway in India, DirecPay is fast gaining popularity among merchants here.

It can be programmed to accept payments in up to 15 different foreign currencies. And it also offers the regular modes of payment in India including UPI, net banking and credit cards, including the newer RuPay branded ones.

13. ePaisa

Other than accepting payments from clients and managing payments to suppliers, ePaisa also manages inventory for merchants.

This is a fabulous payment gateway in India for smaller traders, restaurants, and dropshippers that operate through various marketplaces and ecommerce stores.

14. Zaakpay

Send one-time payment links for customers and generate QR codes that buyers can scan and pay with their UPI apps are some of the features of Zaakpay.

This is a fast growing payment gateway in India because of these features. Upcoming ecommerce stores and budding online traders as well as established companies are finding Zaakpay increasingly useful for faster transactions and to convert leads.

15. Transecute

Transecute is easy to use and affordable. This is a good payment gateway for startups and companies having trade with foreign firms.

It allows round-the-clock monitoring of cash inflow and outgoes while enabling withdrawals anytime. Transecute integrates perfectly well with all Indian banks and merchant websites.

16. Air Pay

Air Pay claims to be India’s only “Omnichannel payment gateway.” Meaning, it allows merchants to accept money from every known payment method in the world.

This is a relatively newcomer in the field of payment gateways in India but has been making rapid strides since launch less than a decade ago.

17. Jus Pay

Jus Pay says it has handled over 4.1 billion payments and the number continues to grow by the minute. According to their official website, Jus Pay handles over four million transactions per day.

Jus Pay draws its strength from the ability to swiftly deliver UPI based transactions. It offers merchants a seamless and complete payment gateway for affordable price.

18. Cashfree

In recent months, Cashfree has been making waves by offering almost zero percent service charges for merchants. This is a superb payment gateway that offers speed and reliability.

Being an Indian payment gateway, it is easily adaptable to Indian financial systems and payments method. It offers more than a hundred payment options and integrates easily for all types of merchants.

19. PayPal

PayPal is an international payment gateway that’s widely used in India. However, in this country, PayPal’s use is a bit limited. Regular users can use PayPal only to receive payments from foreign companies and individuals.

For business users, it’s compulsory to have a Goods and Service Tax Identification Number (GSTIN) to use PayPal to pay and get payments from abroad.

Overall, this is a superb payment portal, though user fees are very high or around 2.5 percent of the transaction value.

20. Bharat Kosh

Maybe you haven’t really heard of Bharat Kosh. This is a Non-Tax Receipt Portal payments gateway of the Indian government. Indeed, it handles all payments that people make to the Indian government and its various ministries.

The next time you’re renewing a driving license or business registration, you will be automatically be directed to the Bharat Kosh payment gateway.

This is an initiative by the Indian government to implement cashless transactions within its own ministries and departments. Any citizen can pay through Bharat Kosh.

Projections for Payment Gateways

According to various projections, the payment gateway industry of India is growing rapidly at 25 percent per year. The trend is expected to continue till 2025 at least.

During the year 2020, the payment gateway industry of India stood at just over $800 million. By the year 2025, it is expected to cross the $1.8 billion mark if not more.

The highest growth in payment gateway usage in India was recorded during 2020 as shops and merchants had no option other than accept online payments, due to the Covid-19 pandemic.

The growth post 2020 will be driven by the growing popularity of online shopping and other monetary transactions done through the digital means.

The rise in online retail and wholesale in smaller cities of India is also expected to propel this growth, according to various industry experts.

Furthermore, the drive by the Central and state governments to promote cashless economy will also lead to a growth in demand for payment gateways in India. In coming years, we’re likely to see more payment gateways enter the market.

Wrap Up

The above facts and figures as well as brief guide on how a merchant should select a payment portal in India should help you make the best choice.

However, it’s advisable to read the terms, conditions, fees and other features before opting for a payment gateway.

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