Payment Methods You can Use When Shopping Online in India

Online Shopping in India: Today, there are over 250 million Internet users in India. And many of them like to shop online.

In India, day by day, the number of online shoppers is growing. One could realize this fact by discovering new shopping websites on the Internet daily.

However, still in India many do not prefer to shop online. Let us look into the details why people do not want to shop online.

  • 99% of People Online do not buy things because of the lack of trust. They think the product or the company selling it, is not genuine.
  • 77% of online customers have fulfilment issues, like they are not satisfied with the product.
  • 69% of them do not shop because there is no shopping experience.
  • 63% wants to see the product physically.
  • And 47% of online visitors do not feel like shopping.

So these were some of the reasons why people don’t shop online.

However, there are many people who don’t have proper idea about how to pay for the product they want to buy. And that is when I thought of writing this post.

This is really simple and easy. There are number of ways you can pay for the product you want to buy.

online shopping payment methods

But before I explain you all the possible payment methods, I will give you a brief idea on some of the best online shopping sites in India.

  1. FlipkartNumber one Indian online Shopping website. It took over and became number one ecommerce site in India.
  2. Amazon India Number one online shopping in the world with operations in India.
  3. Ebay.inPopular ecommerce site in India
  4. SnapDealIt offers local daily deals on various products
  5. ShopCluesFamous for heavily discounted deal
  6. MyntraLeading retailer of lifestyle and fashion products
  7. HomeshopFamous for home appliance
  8. YebhiOnline shopping for wardrobes
  9. TradusFrom Books to clothes
  10. PepperfryLifestyle products for men and women

Most Used Payment Methods for Online Shopping in India

Now let us look how people are paying online after they are done with shopping.

  • Around 61% of them use Debit card & Online Banking
  • 50% use Credit cards
  • 24% prefer COD or Cash on delivery method
  • 10% like prepaid Cash cards
  • 4% like to pay through DD or demand draft
  • Finally only 3% go for mobile payment

Hence, you get an idea how people are paying online. Now let us discuss in details about some of the paying options for online shopping in India.

In general there could be two ways for making payment, online and offline.

Payment Mode: Online

Payment Option: Credit Cards

Some of the most accepted credits cards are

  1. Visa
  2. Mastercard
  3. American Express
  4. Diners Club Card
  5. JCB Cards

EMI on Credit Cards

EMI on credit cards is provided by banks like HDFC and ICICI bank to credit card holders. It is only for 3, 6, 9 and 12 months and minimum order value to use EMI payment option is Rs 3000/-

Banks do charge fixed annual interest rate directly to customers choosing EMI.

Payment Option: Debit Cards

  1. Visa
  2. SBI Cards
  3. Maestro
  4. Debit Cards of Canara Bank, CitiBank, Indian Overseas Bank, PNB, Union Bank of India etc

Payment Option: Netbanking

  1. SBI
  2. HDFC
  3. ICICI
  4. Almost all the major banks

Payment Option: Cash Cards

  1. Done Cash
  2. ITZ Cash/noQ 24 X 7
  3. Oxi Cash Card

Payment Option: Mobile Payments

  1. SBI
  2. Paymate – In paymate you have to use 4 digit PIN for security.
  3. All the majors bank in India

Payment Option: Phone Payment

Make payment through your Visa Credit Card on your mobile with CCAvenue phonepay facility

Payment Mode: Offline

Payment Option: Cash on Delivery or COD

The best paying method for online shopping is Cash on Delivery (COD). I had written another article why COD is the best option among all others.

First is you pay after you receive the product then you could pay through cash which is very easy. So these are few benefits of COD.

Almost all the online shopping website allows COD however you have to know certain things about it

  • COD is allowed for almost every physical products like Books, Electronic gadgets, movies, games, toys, clothing, appliances etc
  • COD could only be possible if you exceed the shopping limit of certain amount. Say Rs 500/- It depends for company to company.
  • Your Pin Code is very important so fill it carefully
  • Finally, there is no extra charge for COD because delivery is free of cost


Payment Option: Demand Draft or DD

You could also pay through DD. You have to write In Favor of “—————-” and submit in the bank. Your product would reach on time.

Payment Option: By Check

Similarly you can also pay through check.

Payment Option: Bank Deposit

Direct bank deposit option is available. Here you could deposit cash directly into their bank account.

So these were some of the offline paying methods. But all these are of no use except COD. If you go for COD then you don’t need any other offline paying option.

Payment Mode: Gift Coupons

Gift coupon is also a way of paying money. Gift coupon is based on total shopping you did. Gift coupons are 10 digit alpha numeric code. There are 3 types of gift coupon discount

  • Flat Discount where flat amount would be deducted
  • Percentage Discount where a percentage would be deducted from total order amount
  • Free Gifts where you get free accessories

So these were some of the paying methods online and offline both.

Now let us look at the paying methods of two popular online shopping sites in India.


Some of the payment methods that Flip Kart allows are

  1. Credit and Debit Cards in India and other 21 countries – 3D secure password
  2. Internet Banking
  3. E Gift Voucher
  4. COD – Maximum order value is Rs 50,000/-
  5. Phone Banking – By using 256 bit encryption
  6. EMI Option for American express, Citi, HDFC, ICICI bank

Second is

  1. Online Payment Methods (PaisaPay)
    • Online Bank Transfer
    • Credit Card
    • Debit Card
    • Cash Card
    • Mobile Payment
  2. Offline Payment Methods
    • PaisaPay Cash on Delivery

Similarly you could visit other websites and find out their payment options. Every online shopping website has different payment modes.


    i am priya as a research scholar doing research in e-retaling related to delivery and payment mode.this aricle is very helpful for me,thanks.if i have ny clarification how can i contact you

  2. Thanks for the information Priya,
    I just wanted to know if there are any companies who offer emi facility without credit card.
    If there are any such companies in market please let me know.

  3. Dear Priya
    Well tnks fr ur information
    i will try to do the online work
    u can guide me

    Vidya Balan

  4. Priya madam,
    Thank you for the article on the safe payment methods while shopping online. Lots of hard work has been put into this field by experts for the safety and security. Presentation was marvelous with huge amount of valuable information. It is a very useful guide for new onlinebuyers. Best wishes and regards.


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