12 Best Payment Gateway for Small Business in India 2024

As more businesses are making their presence felt online, seamless user experience has acquired a new meaning. A major step in this direction has been the advent of payment gateways which make online shopping all the more convenient for customers.

If ecommerce firms want to maintain trust of customers in online payment portals, it is imperative that they shield the customers from such frauds as much as possible.

Now the question arises how businesses can ensure that transactions on their websites are secure without compromising on the overall convenience. For that, we need to understand what the term payment gateway means and what goes behind making it work.

What is a Payment Gateway?

Think of a payment gateway as a cash register, albeit the one that works electronically. These are services that streamline online payment methods including payments made through credit or debit card for ecommerce websites. Some of the popular payment gateway providers are PayPal, RazorPay, Cashfree etc.

12 Best Payment Gateways in India for Small Business & eCommerce Website

1. Paytm Payment Gateway
2. CCAvenue
3. HDFC Billdesk
4. Billdesk SBI
5. Paynimo
6. Stripe
7. Cashfree
8. PayPal
9. PayUbiz
10. RazorPay
11. Atom
12. Instamojo

Here’s the list of payment gateways in India. Depending on the level of security offered and the ease in making payments, a business can choose from several top payment gateways.

Top E-commerce Payment Gateways

1. Paytm Payment Gateway

USP: With the help of Verisign-certified SSL encryption technology, Paytm has revolutionized the process of online payment in India.

Paytm is one of the best payment gateways in India that comes with a safe and PCI compliant way to provide fast speed transactions which are not only limited to credit/debit cards but also extends to net banking, UPI and Paytm wallet. Paytm gateway for payment comes with the option of free account setup and no maintenance charge.

Processing Fee of Paytm

Mode of payment	Charges
UPI	0%
Paytm Payment bank	1.99% + GST
Paytm Wallet	1.99% + GST
Credit Card	1.99% + GST
Debit Card (RuPay)	0%
Debit Card (Visa, Mastercard)	0.4% + GST (for transaction amount <= 2000) 0.9% + GST (for transaction amount > 2000)
Net banking	1.99% + GST

Features of Paytm Payment Gateway

• Diverse Payment Options: It supports over 100 payment sources, including credit cards, debit cards, AMEX cards, net banking, UPI, Paytm Wallet, Paytm Postpaid, Paytm Payments Bank, and EMI.
• Real-time Bank Settlements: Offers real-time bank settlements for seamless transactions.
• 24/7 Customer Support: It provides dedicated key account managers with round-the-clock priority support.
• Express Payments: Ensures secure payments without the need for OTP or CVV, ensuring a smoother transaction process for consumers.
• Saved Payment Methods: Simplifies the checkout process by saving customer payment details, eliminating the need to enter them repeatedly.

Integrations for Paytm

• Web Integrations: You can effortlessly integrate developer-friendly APIs to enable online payment on your website.
• Mobile Integrations: Paytm All-In-One Payment Gateway can be used on desktops, mobile web browsers, and both Android and iOS devices

2. Cashfree Payment Gateway

USP: Cashfree is the only online payment gateway in India with a T+1 cycle. That is payment is credited to your bank account one day after it is initiated.

Cashfree supports one of the widest ranges of Pay later options, which means that users can pay for their purchases in installments over a period.

Through its Cashgram facility, allows for even COD refunds to be initiated and processed. Using cashfree refund API, customers can check the status of their refund on cashfree dashboard.

You can block the funds once an order is placed on the site. In case of a cancellation, you can refund the amount without any cancellation charges applying.

Processing Fee of Cashfree

Mode of payment	Charges
Debit card	1.95%
Credit card	1.95%
UPI	1.95%
Netbanking	1.95%
EMI	1.90%
International cards	2.95%

Features of Cashfree Gateway for Payment

• 120+ Payment Options: Offer your customers a wide array of payment choices, including credit cards, debit cards, UPI, EMI, and more, with over 120 payment options available.
• Instant Refunds: Provide instant refunds to your customers for online orders, cash-on-delivery orders, and deposits using the advanced refund solutions, and exceed your customers’ expectations.
• Instant Settlements: Access your online payment gateway collections within just 15 minutes, even on bank holidays.
• Pre-Authorization: Temporarily reserve a portion of funds when a customer places an order, saving on payment gateway charges for canceled orders with our Pre-Authorization feature.
• Token Vault: Securely process payments using saved card information while complying with RBI regulations. Token Vault is India’s pioneering interoperable card tokenization solution, compatible with all card networks and gateways.

Integrations for Cashfree

• Web Integration: Cashfree Payments enable seamless integration into your website. You can accept Debit/Credit card, Net-Banking, and UPI payments from your customers.
• Mobile Integration: You can integrate the Cashfree online payment platform for small business into your Android or iOS app using the Cashfree Payments SDK.

3. RazorPay

USP: Some of its unique features are instant activation within two minutes and 100 plus payment modes.

Razorpay payment gateway comes with a hassle-free setup. Within minutes of registering your business, you can go live and start taking payments through payment system for small business, payment links, payment pages, SmartCollect and subscriptions.

RazorPay further ensures instant refunds through online payment platform. This online payment gateway boasts of some of the robust and developer friendly APIs, plugins and libraries which all contribute to create a seamless experience.

Processing Fee of Razorpay

Mode of payment	Charges
Indian credit card, debit card, net banking, UPI wallet	2%
American Express cards, international cards	3%

• Standard plan- No setup or maintenance fee
• Enterprise plan– Custom price list is available on request. Visit the official website for more information.

Features of Razorpay Payment System for Small Business

• Cross-border payments via cards and bank transfers: Razorpay enables businesses to accept payments from customers across borders seamlessly through credit/debit cards and bank transfers.
• Zero setup cost: It offers a hassle-free onboarding process with no initial setup cost, making it accessible for businesses of all sizes.
• Multi-currency payment processing: Supports multiple currencies, allowing businesses to accept payments in the currency of their choice, facilitating global expansion.
• PCI compliance: Razorpay ensures that all transactions are secure and compliant with Payment Card Industry Data Security Standard (PCI DSS) requirements, safeguarding sensitive customer data.

Web and Mobile Integration for Razorpay

Razorpay offers easy integration options and provides developers with robust APIs, SDKs, and plugins. You can seamlessly integrate its payment system into various web and mobile applications.

Payment Gateways for Mobile Apps

4. Atom Payment Gateway

USP: What makes Atom one of the best payment gateways is its dynamic routing. That is, if a bank router fails on one gateway, the transaction shifts to another gateway, preventing failure.

Atom payment gateway provides impeccable service both to new as well as established businesses as it is integrated with several banks and payment options. This payment processor makes use of PCI DSS version 3.2, and 256 bit encryption to provide secure transactions and fast checkout.

Processing Fee of Atom

Modes of payment	Charges
Credit card (domestic)	1.99% + INR 3
Debit card	1% (If transaction is above INR 2000)
Net banking	1.99% + INR 3
Wallets	2.2%
Bank EMIs	Available on request
Bank’s IMPS	1.8%
American Express card	3.95%
Credit card (international)	3.95%

Moreover, Atom Charges ₹1955 for Integration (one time) and its annual software upgradation charge is ₹2955.

Features of Atom Payment Gateway

• Payment Options: Atom supports a wide range of payment options, including credit cards (domestic and international), debit cards, net banking, UPI, e-wallets, and more, totaling 50+ banks and 256+ payment options.
• International Payments: Allows Indian merchants to accept international credit card payments, including Visa and Mastercard, albeit with a higher transaction charge.
• Settlement Process: Merchants using Atom payment platform can expect to receive payments within two working days, with funds deposited directly into their designated bank accounts.
• Pricing Transparency: Also, provides clear information about their pricing structure, making it easier for businesses to understand the costs associated with using its online payment platform.

Web and Mobile Integrations for Atom Gateway

• Web Integration: Offers seamless web integration, allowing businesses to integrate the payment gateway into their websites.
• Mobile Integration: Also, supports mobile integration, catering to the increasing number of mobile users. Businesses can integrate the online payment platform into their mobile apps, providing a smooth and user-friendly payment experience for customers who prefer to use mobile devices for transactions.

5. Instamojo Payment Gateway

USP:  Instamojo provides the option of an embed button, which can be pasted on blogs or sites for instant collection of payment.

Instamojo payment platform is made for small businesses and entrepreneurs to facilitate online selling and payments. Instamojo allows sellers to send payment requests via SMS. Instamojo is a hit among the artists who use the platform to sell their designs, photographs, books etc.

Processing Fee of Instamojo

Modes of payment	Charges
NEFT/ Bank transfer	No charge
UPI, Net banking, debit cards, credit cards, wallets	2% + INR 3 (exclusive GST)
International cards, AMEX cards	3% + INR 3 (exclusive GST)

Features of Instamojo

• Payment Types: Instamojo supports a variety of payment methods, including cards, net banking, UPI, e-wallets, and NEFT/IMPS, ensuring flexibility for both merchants and customers.
• Setup: Enjoy a hassle-free experience with Instamojo’s free setup and zero maintenance costs, making it accessible for businesses of all sizes.
• Payment Analytics: Gain valuable insights into your payment data with Instamojo’s payment analytics tools, helping you make informed business decisions.
• Invoices: Create and send professional invoices to your customers, streamlining the billing process and enhancing your professional approach.
• Integrated Merchant Account: Seamlessly manage your merchant account within the Instamojo platform, simplifying transaction processing and reconciliation.

Web and Mobile Integration for Instamojo

You can integrate Instamojo seamlessly into your website or mobile application. It offers compatibility across major mobile platforms such as Android, iOS, and Windows through the use of Webview technology.

Online Payment Providers for International Transactions Online

6. PayPal Payment Gateway

USP: Merchants who want to provide customers with a better checkout experience can use Payflow Gateway. They can open the API and forward transactions to PayPal or can host the checkout pages of servers secured by PayPal.

Arguably one of the most widely known payment gateway options in the world, PayPal’s Payflow offers an unparalleled user experience. PayPal works seamlessly with almost all merchant sites and accounts.

Businesses can also aim for a better sales prospect by offering online payment gateway options like PayPal on their site as it is one of the most used online payment modes worldwide.

Processing Fee of PayPal

Modes of payment	Charges
Payflow link	$0
Payflow pro (with added feature of customizing checkout site as per the business requirement)	$25

Features of PayPal Payment Platform

• Global Reach: PayPal provides payment solutions in over 200 countries, making it accessible to a wide range of businesses and customers worldwide.
• Secure Transactions: It employs advanced encryption and fraud prevention tools to ensure the security of online transactions, protecting both buyers and sellers.
• Multiple Payment Options: Supports various payment methods, including credit cards, debit cards, bank transfers, and PayPal Balances, enhancing the convenience for users.
• Currency Conversion: Automatically convert and handle payments in multiple currencies, facilitating international transactions.
• API Integration: It provides APIs and developer tools for easy integration into e-commerce platforms and websites, enabling businesses to offer PayPal as a payment option.

Web and Mobile Integration for PayPal

• Web: PayPal is a popular payment platform that’s widely used to accept payment in web applications. It’s known for its safety and has become a standard solution among e-commerce platforms.
• Mobile: You can easily integrate PayPal into your online and mobile payments solution using PayPal JavaScript SDK and REST APIs.

7. PayU

USP: Businesses having physical stores can streamline their online and offline payments using PayU. Payments at the physical stores can be accepted via PayU by setting up BharatQR.

PayUbiz payment gateway provider allows businesses in India to receive payments from local as well as international customers in multiple currencies. Transactions between merchant site and customer are secured with deep encryption thus minimising the risk of phishing or online fraud.

Processing Fee of PayU

PayU charges 2% for each transaction (exclusive of GST)

Features of PayU Payment System

• Subscriptions: Easily set up and manage recurring payment plans, whether weekly, monthly, or yearly, providing convenience for both businesses and customers.
• International Payments: Accept payments in over 100 currencies, making it seamless for both national and international customers to pay in their preferred currency.
• Same-Day Settlements: Receive settlements on the same day of transaction via IMPS, helping small businesses and startups manage their cash flow effectively.
• Payouts: Automate bulk payments to any account instantly through IMPS, NEFT, or UPI, ensuring timely disbursement and easy transaction tracking.
• PayU Assist: Access a dedicated support system for resolving queries quickly, including live chat with PayU Buddy and ticket raising for tracking issues.

Web and Mobile Integration for PayU

• Web Integration: Yes
• Mobile Integration: Yes

Payment Gateways for Websites

8. CCAvenue Payment Gateway

USP: CCAvenue offers the largest portfolio of online payment options to ensure that merchants can create an outstanding payment experience for their customers.

CCAvenue is one of the most secure payment gateway for website to process online transactions. It is integrated with multi-vendor and CS cart. It works equally well in both production and test modes of payment and allows CCAvenue payment response to be recorded at the admin’s end.

Once the payment is initiated, your customers can be redirected to the CCAvenue hosted site, whose look and feel can be customized to complement your company’s website.

Processing Fee of CCAvenue

Mode of Payment	Charges
Debit cards (domestic)	2%
Credit cards (domestic)	2%
Net banking	2%
Prepaid wallets	2%
UPI	0%
Debit card (international)	3%
Corporate credit card	3%
American Express/ AMEX diners club	4%
Multi-currency options	4.99%

All these charges are for the Start-up Pro Option which has no setup fee. For the Privilege plan, the setup fee is 30,000 INR. More details can be obtained by contacting the company.

Features of CCAvenue Online Payment System for Small Business

• Maximum Payment Options: Provides a wide range of payment options, including credit cards, debit cards, net banking, prepaid instruments, and bank EMI.
• Multiple Currency Processing: Allows global businesses to collect payments in 27 major foreign currencies, providing a localized buying experience.
• Multilingual Checkout Page: Offers a checkout page in 18 major Indian and international languages, enhancing the user experience.
• Invoice Payments: Enables the creation and sending of itemized invoices for easy and accurate transactions.
• Super Support: 24/7 customer support and dedicated relationship managers for assistance.

Web and Mobile Integration for CCAvenue

CCAvenue’s mobile SDKs enable seamless and effortless payment integration directly within your iOS, Android, or Windows mobile app.

9. HDFC Billdesk

USP: Supports all types of payments, be it post-paid or pre-paid mobile, DTH, utility bills, insurance, or rental payments.

Billdesk is one of the oldest payment gateways in India and is frequently used by companies across sectors such as telecom, finance, retail and ecommerce. This payment integration service is best suitable for Indian companies which must manage recurring monthly payments.

For businesses which handle international payments, this online payment gateway method may not be the best option.

Processing Fee of HDFC Bank

Mode of payment	Charges
Net banking	Convenience fee of INR 10 per transaction Plus Service tax as applicable on convenience fee for HDFC, ICICI, Axis, SBI and its associate banks. Convenience fee of INR 5 per transaction Plus Service tax as applicable on convenience fee for other banks.
Credit card (MasterCard/Visa/Amex)	Convenience fee of 0.90% on payment amount (Subject to minimum of INR 5 plus service tax as applicable on convenience fee.
Debit Card (MasterCard/ Visa) RuPay Debit Cards ATM-cum-Debit Cards	Convenience fee of 0.75% on payment amount for value up to INR 2000. 0.90% of Payment amount for value above INR 2000 (subject to mini of INR 5 plus service tax as applicable on convenience fee).
Cash Card/Mobile Wallets	Convenience fee of 0.90% on payment amount (Subject to minimum of INR 5/- plus service tax as applicable on convenience fee.

Features of HDFC Billdesk

• Diverse Payment Support: HDFC BillDesk offers compatibility with more than 150 payment methods, ensuring flexibility for both businesses and customers.
• Variable Pricing Options: Users can benefit from flexible pricing structures tailored to different payment methods, allowing businesses to optimize costs effectively.
• Real-time Dashboard: Provides a real-time dashboard for businesses to monitor transactions, making it easier to track payment activity and performance.
• Automated Refund Processing: BillDesk streamlines the refund process with automation, reducing administrative burdens for businesses and enhancing customer satisfaction.
• Seamless Integration: It offers hassle-free integration for both one-time and recurring transactions, simplifying the implementation process for businesses of all sizes.

Web and Mobile Integration for HDFC Billdesk

• Web Integration: Yes
• Mobile integration: Yes

10. Easebuzz

USP: Easebuzz offers industry-leading success rates, ensuring higher payment success and enhanced customer experience for your business.

Easebuzz is India’s one of the first and leading payment solutions for small and medium-sized businesses. It allows businesses to accept payments online using credit cards, debit cards, net banking, and wallets. Easebuzz is PCI DSS Level-1 compliant and offers a secure payment processing system.

Moreover, security is paramount, with advanced encryption and fraud detection measures in place, ensuring trust between customers and merchants. Easebuzz seamlessly integrates with e-commerce platforms, streamlining setup and management for increased conversions and customer satisfaction.

Processing Fees of Easebuzz

Easebuzz charges for every successful transaction. Moreover, the setup and joining fee of this payment gateway pricing is zero.

Mode of payment	Charges
Up to INR 1000	INR 4 / transaction
Up to INR 1000-25000	INR 5 / transaction
More than INR 25,000	INR 9 / transaction

Features of Easebuzz Payment Gateway

• High success rates: Industry-leading success rates minimize payment failures, improving the overall shopping experience for customers.
• Wide range of payment options: Easebuzz supports various payment methods, from cards to digital wallets, catering to diverse customer preferences.
• Quick settlements: Businesses benefit from fast and reliable fund settlements, aiding cash flow management.
• Data insights and analytics: Providing valuable data-driven insights, it empowers businesses to make informed decisions and optimize their operations in a competitive online market.
• Seamless and secure transactions: It ensures a seamless payment experience with robust security measures, including encryption and fraud detection, to protect users.

Web and Mobile Paytm Gateway Integration for Easebuzz

Easebuzz payment system offers seamless integration options for both web and mobile platforms, ensuring smooth and user-friendly payment experience for your customers.

11. Paynimo

USP: Paynimo ensures extremely safe money transfers with two-factor authentication in compliance with PCI DSS standards.

Paynimo’s secure encryption enables customers to proceed with their payments in minimal steps, allowing for superior customer experience.

Merchants can set up payments using only a mobile phone without having to invest in any additional infrastructure. Paynimo provides payment links within SMS and E-mail alerts.

Processing Fee of Paynimo

Paynimo charges may vary according to transaction amount. All details about fees and charges can be obtained from the official website.

Features of Paynimo Payment Platform

• Mobile-First Payment Platform: Paynimo is a mobile-first payment platform, making it convenient for users to make online payments and money transfers using their mobile devices.
• Ease of Payment Request: Merchants can request payments or transfer money by simply using the customer’s mobile number or email ID, making the payment process hassle-free manner.
• Wide Range of Payment Options: Paynimo offers support for various payment methods, including Cards, Netbanking, IMPS, RTGS, National Electronic Fund Transfer, and e-wallets, ensuring flexibility for users.
• High Security: Paynimo enhances security for money transfers by implementing two-factor authentication, ensuring that only authorized users can initiate and complete transactions.

Mobile and Website Integration for Paynimo

Paynimo offers seamless integration options for both mobile and website platforms. This means that businesses and individuals can easily incorporate Paynimo’s payment gateway into their mobile applications and websites, providing customers with a smooth and convenient payment experience across devices.

12. Stripe Payment Gateway

USP: As per a report, businesses signed up with Stripe’s payment gateway register an increase of 6.7% in their revenue.

Stripe payment system is one of the most popular gateway for payment in recent times. Their services are spread across several sectors with a highly secure end-to-end encryption. It is loaded with new features every month making the possibility of online fraud bleak and providing exceptional user experience.

Stripe further supports multi-party payments across 25 different countries, and you can also manage recurring payments easily with Stripe’s recovery tools.

Further, to ensure secure payments, Stripe payment gateway encrypts all card numbers on a disk with AES-256. These decryption keys are stored across different machines to prevent any scope of the security breach.

Processing Fee of Stripe Payment System

Mode of payment	Charges
Mastercard and Visa card issued in India	2%
American Express cards issued in India	3.5%
Cards issued outside India	3%
International cards	4.3% (currency conversion will lead to additional 2% fee)

Features of Stripe Payment Provider for Small Business

• Payment Processing: Allows businesses to accept payments online, in person, or through their platform, providing a comprehensive solution for payment processing.
• Revenue and Finance Automation: Helps businesses grow by automating revenue and finance processes, making it easier to manage finances and optimize revenue.
• Banking-as-a-Service: Offers the capability to embed financial services in your platform or product, enhancing the overall financial experience for customers.
• Fraud and Risk Management: Stripe’s Radar feature provides robust fraud and risk management tools to help businesses protect against fraudulent transactions and manage risk effectively.

Web and Mobile Integrations for Stripe

• Website Integration: Yes
• Mobile Integration: Yes

Compare Top 5 Payment Gateways in India

Features	Paytm	Razorpay	CCAvenue	Stripe	PayPal
Best For	Retail Business and mobile payments	Startups and eCommerce stores	Small to large scale business	Online business and marketplaces	Receiving global payments
Pricing	Variable	Variable	Variable	Variable	Variable
Transaction fee	0-1.99%	2-3% based on plan	2-5% based on transaction	2-4%	4% conversion charges
Multi-currency support	Limited	Yes	Yes	Yes	Yes
Security Type	PCI-DSS compliant with 128-bit encryption	TLS and AES-128 encryption	Industry-standard (Secure Socket Layer) SSL encryption	PCI and CDV Compliance	End to end and TLS Encryptions
Invoicing	Yes	Yes	Yes	Yes	Yes
Fraud-protection	Yes	Yes	Yes	Yes	Yes

How Does a Payment Gateway Work?

A payment gateway is a technology that processes transactions. So, it collects payment details, such as credit card information, and authorizes payments through different payment methods.

This is how a payment provider works:

• The customer inputs their card details on the website.
• Sends this payment information to the Acquiring Bank via a payment processor (like PayPal or Razorpay).
• The Acquiring Bank then transmits the information to card networks.
• Links with debit/credit card networks like Visa and Mastercard to validate the transaction data.
• Following validation, approves the transaction, checks for available funds, and transfers the money to the merchant’s account.
• Finally, the payment gateway notifies the customer whether the payment has been accepted or declined.

How to Choose the Best Payment Gateway for Small Business?

With several payment gateways in the market, choosing the right platform may be an overwhelming task. To make an informed choice, consider the following factors:

• Cost and Charges: Evaluate the payment gateway’s pricing structure, including transaction fees, setup costs, and hidden charges. Select a gateway that fits within your budget and offers competitive rates.
• Benefits/Advantages: Examine the advantages offered by the payment providing platform, such as fast settlement times, multi-currency support, and integration with popular e-commerce platforms.
• Tech Support: Reliable and responsive technical support is essential for addressing any issues or queries promptly. Choose a payment gateway provider known for excellent customer support to ensure you get assistance, when needed.
• Usability: A user-friendly interface is crucial for both you and your customers. Opt for a payment system that provides a seamless and intuitive experience, facilitating smooth transactions.
• Low Failure Rate: High payment failure rate can lead to lost sales and frustrated customers. Prioritize a payment platform with a low failure rate to ensure a high transaction success rate.
• Additional Services: Consider whether the gateway provider offers supplementary services like invoicing, subscription billing, or fraud protection. These services can add value to your business and streamline operations.

Frequently Asked Questions (FAQs) on Payment Gateways