What is a Payment Gateway?
A Payment Gateway is a virtual service provided by companies that allow monetary transactions to be made online. It includes physical debit or credit card-reading devices as well as online portals. There are even phone-based payments that work with QR codes. The processes followed by payment gateways are constantly evolving to keep up with trends and to make the entire procedure simpler.
There are several payment gateways available in India that businesses and individuals can avail of. With the pandemic, the need for these services has increased exponentially, and choosing the right one can be difficult. Below is an in-depth guide to finding the top payment gateways in India.
Top Ten Payment Gateways in India

Razorpay
Razorpay is a Bangalore-based company founded in 2014. Razorpay allows businesses to accept, process, and disburse payments with its product suite. From automating bank transfers to collecting recurring payments and sharing invoices, it offers several solutions on one platform. It gives one access to several payment modes, including credit cards, debit cards, UPI, net banking, and payment wallets like JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp. Websites like WooCommerce, Magento, CS-Cart, Shopify, WordPress, Prestashop, etc., also use Razorpay as a payment gateway. Razorpay is used by a number of businesses and comes highly recommended as it is not only simple to use but also very secure.
Pros
- Easy and fast integration
- Zero setup cost
- Over 100 payment methods are available
- All major international cards are accepted
- Dashboard Reporting System
Cons
- High failure rate reported for international transactions
- Servers are sometimes slow
- Poor customer support

CCAvenue
CCAvenue is a payment gateway used widely across the country. It allows payments in over 27 major foreign currencies and even has a multilingual check-out page to cater to its diverse customer base. The CCAvenue check-out page can be customized easily to suit a particular website. Card details can be saved in an encrypted format so that customers only need to enter their CVV and password for repeat transactions. It even has shopping cart plugins for sites like WordPress, Magento, Magento Go, and BuildaBazaar. Brands like Lakme, Airtel, and Myntra use CCAvenue’s services.
Pros
- Allows multiple currency processing
- Faster activation of accounts
- Has over 200 payment methods
- Responsive check-out page
- Offers easy-to-use marketing tools
- Creates itemized invoices
Cons
- Security can sometimes be an issue
- Customer support is slow

Instamojo
Founded in 2012 with its headquarters in Bangalore, Instamojo is both a payment gateway as well as an online store. Its easy-to-use interface has made it very popular, especially with small businesses and start-ups. Used by over 20 lakh businesses, they also offer SEO and marketing tools, analytics, as well as reseller networks. They also have a free Ledger Tool to keep track of payments and receipts. Companies like Urban Clap, Dunzo, and Springboard all use Instamojo. It can be integrated with several platforms like Magento, Prestashop, CS-Cart, WordPress, Meteros JS, Ionic SDK, and Opencart.
Pros
- No setup fees
- Smooth interface
- More than 100 modes of payment
- Access to free marketing tools
- Free Ledger Tool available
- Access to reseller network for better sales
- Versatile landing pages
- Beginner-friendly dashboard
- Can set up custom calls and messages for incoming payments and more
Cons
- High per-transaction fees
- Complaints about Customer Service
- The live chat option needs to be improved
- Does not support payments in multiple currencies

Mobikwik
Mobikwik, based in Gurugram, was founded in 2009 and provides a mobile-based phone payment system and wallet. Consumers can add money to their wallets and use it to pay for goods and services purchased. Phone recharges, bill payments, local store payments, e-commerce shopping, peer-to-peer payments, and bank transfers can all be done on Mobikwik. It has over 101 million registered users and more than 3.45 million e-commerce, physical retail, and biller partners. Zomato, PVR, Big Bazaar, Meru, and OYO all use Mobikwik. It supports credit cards, debit cards, wallets, UPI, and EMIs. It can also be integrated with WordPress, XCart, Zencart, Prestashop, CS-Cart, Cubecart, and OsCommerce.
Pros
- Mobile-friendly interface
- Supports international transactions
- Multiple payment options
- Offers and discounts
- Quick payments and seamless money transfer
- Investment options available
- Can be used for multiple payment needs
Cons
- No multicurrency processing facility
- No invoice provided
- No option for recurring billing

SBI
SBI is an Indian public sector bank that offers a payment gateway service known as SBIePay. It is an online payment aggregation service provided by the bank with clients ranging from Central and State Government bodies to Educational Institutes, Co-operative Societies, and Private Firms. SBIePay uses its own payment gateway to process debit and credit card transactions. It supports Visa, Mastercard, RuPay, Amex, and Maestro and can handle international transactions as well. Magento 2 store owners can easily integrate the SBI payment gateway using the Magento 2 SBI Payment Gateway extension. As a trusted public sector bank in India, SBI is the top choice for many Indian customers.
Pros
- Trusted by all
- Connected to a reputed public sector bank
- Has obtained regulatory and security approvals i.e. PCI-DSS V3.2 and SSL certification
- One-stop shop for all payment requirements
- Provides an offline mode of payment
- Can handle international transactions
Cons
- Lengthy account activation procedure
- Several failed UPI transactions

Paytm
Paytm, based in Noida, is an Indian multinational company that focuses on digital payment systems, e-commerce, and financial services. Founded in 2010, the Paytm app can be used for a variety of services that range from paying bills to mobile recharges, booking movie and flight tickets, investing in stocks, and even opening a savings account. Due to its versatility, Paytm is used by different types of businesses and individuals for their payment needs. It is the only payment gateway in India that accepts UPI payments at a 0% transaction cost. One can even integrate Paytm with Magento by following these steps: https://business.paytm.com/docs/magento. It can even be integrated with Opencart, Zencart, WordPress, WooCommerce, Joomla, Virtue Mart, Prestashop, OsCommerce, WordPress E-commerce, Ubercart, Easy Digital, WHMCS, ViArt, CS-Cart, Drupal Commerce, Moodle, Nopcommerce, and Gravity forms. Brands like Uber, Zomato, and Swiggy make use of the Paytm payment gateway.
Pros
- All domestic debit and credit cards are accepted
- Faster transactions
- Invoice feature available
- Payments can be made through a link as well
- Simple integration and immediate activation
- More than 100 payment sources
- Discounts and offers are available
Cons
- Higher transaction fee for credit cards
- KYC is required to make use of all the features of Paytm
- Has been known to be prone to fraud calls and messages
- Customer Service can be slow sometimes

HDFC
HDFC Bank was founded in 1994, is headquartered in Mumbai, and is India’s largest private sector bank. HDFC is a trusted name in the payment and banking sector.
The HDFC payment gateway offers a secure platform for online payments and transactions. In the case of Magento 2 store owners, one can integrate the Magento 2 HDFC Payment Gateway extension into the store. HDFC also offers a payment gateway model for brokers to enable the receipt of partial funds or release or transfer funds as per a customer’s request. It offers business-to-business payment gateway services as well and is used by several renowned brands like VSNL.
Pros
- High security offered (128-bit encryption and SET certification for digital signature)
- EMI payments available
- Supports 16 global currencies
- 24-hour help desk
- Fast transactions and instant settlement
Cons
- Not always suitable for smaller businesses

PayPal
PayPal is an American multinational company that handles online payments and transactions. It is known for its world-class security standards and its smooth check-outs. It is one of the world’s largest internet payment companies and acts as an acquirer by processing payments for vendors and commercial users at a fee. It can be used by small to medium sizes businesses, enterprises as well as bigger organizations. Businesses like MakeMyTrip and ALTBalaji utilize PayPal’s services. It is known for its seamless services and quicker check-outs. It also offers credit which can be beneficial to many clients. It can also be integrated with Shopify, Magento, WooCommerce, GoDaddy, Prestashop, Etsy, Zoho, and Get Me A Shop.
Pros
- 24/7 customer support
- Can be used for international payments
- Generates invoices
- Multiple payment methods are available
- Secure payment system
- Fast transactions
- Services available for preventing fraud
- Can pay via a QR Code
Cons
- Not advisable for smaller businesses as the charges are high
- Limited uses for small companies
- Account suspension for a violation of terms and conditions that can freeze your funds for months

PayU
PayU is a payment gateway that was launched in 2006 in the Netherlands. It is one of the largest tech investors in the world and provides online payment solutions to several businesses, developers, and e-commerce merchants. Within India itself, PayU serves more than 4,50,000 merchants with over 100 payment methods. Brands like Netflix, BookMyShow, Airbnb, and Myntra, too, use PayU’s services. It also allows customers to customize their check-out page, which is a feature required by many. Companies can also accept foreign payments as it supports more than 100 currencies. PayU also assigns a dedicated account manager to each customer, which can be very beneficial when any issue arises. It also supports most CMS systems like Charitable, Drupal Commerce, E-commerce, Ecwid, Interspire, Joomla, Jumpseller, Kartmagic, Kartrocket, Magento, NopCommerce, Opencart, OsCommerce, Prestashop, Shop2Grab, Shopify, Shopio, ShopMania, Shopmatic, Tally, Ubercart, WHMCS, WooCommerce, ZenCart, Zepo, and Zoho. One can get more details about the plugins here – https://devguide.payu.in/plugins/e-commerce-plugins.
Pros
- Invoice feature available
- Multiple currency processing
- Dedicated account manager
- Facility for recurring billing
- More than 100 payment options are available
- Faster payments with a higher success rate
- Check-out page can be customized
Cons
- Some customers have complained of delayed payments
- Payments are released once a week
- It may be difficult to use the first time
- Commissions are high

Cashfree
Cashfree was launched in 2015 and has become one of the most popular payment gateways used in India. It is also one of the cheapest payment gateways in the country. It accepts credit and debit cards, net banking, and UPI payments. One can collect payments, send payouts, and even manage international transactions with Cashfree. Businesses like Delhivery, Cred, Nykaa, L&T, Dunzo, and Dream 11 leverage Cashfree for their transactions. It has plugins for various sites like Shopify, WooCommerce, Magento, PrestaShop, WHMCS, CS-Cart, OpenCart, WordPress, StoreHippo, Zencommerce, Ecwid, Wix, and Arastta. For more details on how to install these plugins, visit https://docs.cashfree.com/docs/integrations.
Pros
- No setup cost
- Can generate invoices
- High security
- Low transaction fee
- Instant refund facility
- Accepts multicurrency payments
- Easy configuration
- Allows auto collection of payments
- Recurring billing facility
Cons
- Prefers to work with government institutions
- Customer service may be slow at times
- Onboarding may take time
Comparison Table
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