Top 10 Payment Gateway Services for Small Business in India
Payment Gateway Complete (Hindi + English) guide — compare fees, settlement, integration, docs & FAQs.1. Introduction
English: For small businesses in India, choosing the right payment gateway is critical to accept online payments securely and with low fees. In 2025, the market offers multiple options—Razorpay, PayU, Cashfree, Instamojo, Stripe (selective), and bank gateways—that differ by setup fees, transaction charges, settlement speed and developer-friendliness. A good gateway improves checkout conversion, reduces cart abandonment and provides reliable reports & support.
हिंदी: भारत में छोटे व्यापारों के लिए सही पेमेंट गेटवे चुनना आवश्यक है ताकि वे ऑनलाइन पेमेंट सुरक्षित तरीके से स्वीकार कर सकें और यूपीएस/डेबिट/क्रेडिट/UPI जैसी सुविधाएँ दे सकें। 2025 में Razorpay, PayU, Cashfree, Instamojo, Stripe आदि प्रमुख विकल्प हैं। सही गेटवे से checkout conversion बढ़ता है और customer trust बनता है।
2. What is a Payment Gateway? (पेमेंट गेटवे क्या है?)
English: A payment gateway is a technology that securely captures and transfers payment data from customer to acquiring bank and payment processor. It supports cards, UPI, wallets, netbanking, and provides fraud detection, tokenization and recurring billing features.
हिंदी: पेमेंट गेटवे वह तकनीक है जो ग्राहक के भुगतान के डाटा को सुरक्षित तरीके से बैंक और payment processor तक पहुंचाती है। यह कार्ड, UPI, वॉलेट और नेटबैंकिंग को सपोर्ट करता है और fraud detection, recurring billing जैसी सुविधाएँ देता है।
3. Types of Payment Gateways for Small Business
- Hosted Payment Gateways — Customer redirected to gateway page (simple setup).
- API/Integrated Gateways — In-site checkout, developer integration (better UX).
- UPI & Wallet aggregators — Fast settlement for UPI and wallet flows.
- Subscription/Recurring Gateways — For SaaS and membership billing.
Tip: For e-commerce stores, use integrated checkout (API) for higher conversions; for simple shops, hosted options work well.
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4. Best Payment Gateways in India — Comparison Table (Top 10)
| Gateway | Txn Charges (Card/UPI) | Settlement | Key Features |
|---|---|---|---|
| Razorpay | ~2% card; UPI 0–1% | Daily / T+1 | Developer APIs, Subscriptions, Marketplaces |
| PayU | ~1.75–2.2% card; UPI low | Daily / T+1 | Large merchant base, Fast onboarding |
| Cashfree | ~1.75–2% card; UPI 0–0.5% | T+1 / Instant Payouts | Instant settlements, Payout APIs |
| Instamojo | ~2%+ fixed fee | Daily | Easy setup for small sellers, links & store |
| Stripe (India) | ~2% card | T+2 / Custom | Global APIs, great dev docs |
| CCAvenue | ~2%+ | T+2 | Multiple payment options, longer in market |
| HDFC PayZapp / Bank Gateways | Bank dependent | T+1 / T+2 | Trusted bank-level support, EMI options |
| Paytm for Business | ~1.75–2% card; UPI free | Daily | Large wallet & UPI user base |
| BillDesk | Enterprise pricing | T+1/T+2 | Trusted for recurring & utility payments |
| MIDTRANS / Global providers (via partners) | Varies | Varies | Cross-border & multi-currency |
Charges are indicative and vary by merchant category, volumes, negotiated pricing and add-ons (fraud, EMI, tokenization).
5. Top 10 Payment Gateways — Detailed Notes
1. Razorpay
Razorpay is developer-friendly, supports UPI, cards, wallets, and subscriptions. Onboarding is fast; suits startups and marketplaces. It also offers Smart Collect (UPI & netbanking), instant refunds and analytics.
2. PayU
PayU has a strong merchant base, good support for e-commerce, and multiple pricing plans. It supports EMI, tokenization and anti-fraud tools.
3. Cashfree
Cashfree focuses on quick settlements and payouts — great for businesses that need instant vendor payments. Also offers payment links and subscription services.
4. Instamojo
Instamojo is tailored for small sellers and creators — easy payment links, storefront, no complex integration for basic use.
5. Stripe (India)
Stripe brings global-grade APIs and multi-currency features; attractive for SaaS startups and export-oriented merchants. Developer docs are excellent.
6. CCAvenue
Oldest player with many payment options and international acquiring. Onboarding may be slower but feature-rich.
7. Paytm for Business
Large UPI/wallet ecosystem; customers on Paytm often convert better. Good for retail & quick checkouts.
8. Bank Gateways (HDFC, ICICI etc.)
Banks provide trusted acquiring services and EMI options; useful for established merchants preferring bank relationships.
9. BillDesk
Enterprise-grade, widely used for billers, subscriptions and large volume recurring collections.
10. Global partners / Mid-market providers
For cross-border, connect via partners who provide local acquiring and currency management.
6. Payment Gateway Integration & Onboarding (Apply Process)
Basic Steps
- Create merchant account on the gateway website (provide business details & PAN).
- Complete KYC — Business PAN, Bank account proof, GST (if applicable) and ID proof of directors.
- Choose integration method — hosted link, iframe, or API checkout.
- Test payments on sandbox; move to production after verification.
- Configure settlements, webhooks & reconciliation reports.
Note: Platforms like Shopify, WooCommerce & Magento have plugins for popular gateways (Razorpay, PayU, Cashfree) to simplify integration.
7. Charges & Pricing Models
- Transaction Fee: Percentage per transaction (e.g., 1.75%–2.5% for cards).
- Gateway Fee / Setup Fee: Some providers charge setup or annual fees for enterprise plans.
- Refund Charges: Refunds may have fixed fees or no charges depending on provider.
- Settlement Fees: Instant payouts may have extra charges compared to T+1 settlements.
- Chargeback Fees: Fee applicable for disputed transactions; maintain KYC & good dispute handling to reduce risk.
8. Benefits of Using a Good Payment Gateway
- Higher conversion with smooth checkout & UPI support.
- Faster settlements reduce cashflow issues.
- Fraud detection and chargeback management.
- Detailed reporting for accounting & reconciliation.
- Recurring billing & subscription management for SaaS.
9. Eligibility & Required Documents for Merchant Onboarding
Eligibility
- Indian entity: Proprietorship, Pvt Ltd, LLP, Partnership.
- Valid bank account in India.
- GST registration usually required for larger merchants.
Documents
- Business PAN & owner PAN
- Cancelled cheque / bank statement
- GST certificate (if applicable)
- Address proof & ID proof of directors/owners
- Website or storefront link (for verification)
10. Useful Links
11. FAQs — Click to Expand
A: For startups & SMEs, Razorpay and Cashfree are popular for developer-friendly APIs & competitive pricing. Instamojo suits micro-sellers. Choose based on settlement speed, fees and required features. / Razorpay और Cashfree developer-friendly और अच्छे features के कारण लोकप्रिय हैं; Instamojo छोटे विक्रेता के लिए आसान विकल्प है।
A: Basic hosted links are free to integrate. API integration may need developer time (one-time). Providers may waive setup fee; transaction charges are recurring. / Hosted links आमतौर पर फ्री हैं; API integration में developer cost होता है; transaction fees लागू रहती हैं।
A: Settlement (payout to bank) varies: T+1 (next business day) is common; instant payouts cost extra. Check provider SLA. / आमतौर पर T+1 होता है; instant payouts के लिए अतिरिक्त शुल्क हो सकता है।
A: Yes, UPI transaction charges are typically lower or free (promotional). Use UPI to lower payment costs and increase conversions. / हाँ, UPI के चार्ज कार्ड से कम होते हैं; कई बार फ्री भी मिलते हैं।
A: Maintain KYC, clear refund policy, keep transaction records & proofs. Use gateway dispute dashboard to respond quickly. / KYC रखें, स्पष्ट refund policy दें और दस्तावेज़ संभाल कर रखें; dispute dashboard से timely respond करें।
A: Many gateways (Razorpay, Stripe, PayU) support recurring payments & saved card tokens. Ideal for SaaS. / हाँ, Razorpay, Stripe जैसे gateways recurring billing देते हैं।
A: Instamojo & Paytm are easiest for micro sellers; Razorpay & Cashfree are straightforward for paid SMEs. / Instamojo और Paytm छोटे विक्रेता के लिए आसान हैं।
A: Gateways are PCI-compliant; if you handle card data directly, ensure your integration meets PCI standards. Hosted checkout reduces compliance burden. / अगर आप कार्ड डेटा खुद संभालते हैं तो PCI मानकों का पालन करें; hosted checkout से compliance आसान होता है।
A: Yes — for higher volumes, negotiate lower transaction rates and custom SLAs. / हाँ, transaction volume बढ़ने पर negotiation संभव है।
A: Compare features: fees, settlement speed, accepted payment methods, plugin support (WooCommerce/Shopify), dev docs & customer support. / फीस, settlement, UPI support, plugin availability और support देखकर चुनें।
12. Conclusion
English: Choose a payment gateway that balances cost, settlement speed and developer convenience. For most Indian small businesses, Razorpay, Cashfree or PayU provide a strong combination of features, UPI support and reliable onboarding. Test in sandbox, monitor user drop-off at checkout and optimize flows.
हिंदी: छोटे व्यापारों के लिए भुगतान गेटवे चुनते समय लागत, settlement और integration की सुविधा देखें। Razorpay, Cashfree और PayU कई मामलों में बेहतरीन विकल्प हैं। पहले sandbox पर टेस्ट करें और checkout conversion पर ध्यान दें।