List of the Best Payment Gateway in India: Top Providers, Features & Pricing

History & Growth of Payment Gateways in India

The journey of payment gateways in India started in the early 2000s when online shopping was still a novelty. Companies like BillDesk and CCAvenue were among the pioneers.

The real boom came after 2010, when smartphones and cheap internet made online shopping more mainstream. The government’s push for Digital India and the rise of UPI (Unified Payments Interface) transformed the payment ecosystem. Suddenly, even small businesses could accept digital payments without expensive infrastructure.

Today, India is among the fastest-growing digital payment markets globally. According to the RBI, over 9,000 crore digital transactions were recorded in FY 2023–24, and payment gateways played a significant role in enabling this surge. With e-commerce, subscription-based models, and freelance work booming, payment gateways have become indispensable.

Key Features of Payment Gateways 

Not all payment gateways are the same. Before choosing one, it’s essential to know the features that matter most.

1. Security & Compliance

Protecting customer data is the top priority for any payment solution. Indian gateways must follow PCI DSS compliance and RBI guidelines to ensure safe transactions. Many also use encryption and fraud-detection tools.

2. Multiple Payment Modes

A good payment gateway supports all popular methods:

• Debit & Credit cards
  
  

• UPI
  
  

• Net banking
  
  

• Digital wallets (Paytm, PhonePe, Amazon Pay)
  
  

• EMI options
  

3. Ease of Integration

For businesses, integration with websites, mobile apps, or POS systems should be simple. Gateways like Razorpay and PayU offer developer-friendly APIs and plugins for WordPress, Shopify, and WooCommerce.

4. Real-Time Analytics

Merchants benefit from dashboards that track sales, failed payments, chargebacks, and refunds instantly.

5. Customer-Friendly Experience

A smooth, quick checkout process improves conversion rates. Some gateways offer customized checkout pages that match your brand.

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Specialized Features

Apart from the basics, businesses may need advanced features like:

• Recurring Payments: Essential for subscription-based services like OTT apps or SaaS tools.
  
  

• Multi-Currency Support: Helps businesses that deal with international clients.
  
  

• Split Settlements: Useful for marketplaces like food delivery apps or ride-sharing platforms.
  
  

• Custom Invoicing: Freelancers and small businesses can send payment links or digital invoices directly.
  
  

• Developer-Friendly APIs: Allow businesses to build custom workflows.
  

If you’re an e-commerce seller, you may need multiple features, while freelancers may only require invoicing and UPI collections.

How to Choose the Right Payment Gateway? 

Selecting the right payment gateway depends on your business size, audience, and budget. Consider these factors:

1. Transaction Fees – Compare per-transaction charges, setup fees, and hidden costs.
   
   

2. Payment Options – Ensure it supports the UPI, cards, and wallets your customers use.
   
   

3. Security – Look for PCI DSS compliance and anti-fraud systems.
   
   

4. Integration – If you run a Shopify, WooCommerce, or WordPress store, choose a gateway with ready plugins.
   
   

5. Customer Support – Delayed settlements can hurt businesses. Choose a provider with reliable support.
   

Payment Gateway Pricing Models 

Most Indian gateways charge 2–3% per transaction on average. Some may also include:

• Setup fees (one-time cost)
  
  

• Monthly charges for premium features
  
  

• Additional fees for EMI, international cards, or wallets
  
  

Example: Razorpay charges 2% for domestic transactions, while PayU has flexible packages for high-volume businesses. Freelancers or small sellers may prefer Instamojo, which has no setup cost.

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How to Start a Payment Gateway Business in India?

Running your own payment gateway business can be profitable, but it requires heavy compliance.

Basic Requirements:

• RBI approval as a payment aggregator
  
  

• PCI DSS certification for security
  
  

• Strong server and encryption infrastructure
  

Costs Involved:

• Initial investment in technology and servers
  
  

• Hiring a tech and compliance team
  
  

• Ongoing operational and customer service expenses
  

Challenges:

• Regulatory hurdles
  
  

• Competition from established players
  
  

• Building customer trust
  

Despite challenges, India’s growing digital economy makes this sector promising, especially for fintech startups exploring niche solutions.

Essential Payment Gateway Software & Tools

To run or integrate a payment gateway, businesses use:

• Billing & Invoicing Software – Automates collections
  
  

• Fraud Detection Tools – Prevents fake transactions.
  
  

• APIs & SDKs – For custom app/website integration
  
  

• Cloud-Based Dashboards – For real-time monitoring
  

Popular solutions include RazorpayX, Stripe APIs, and PayU tools.

What is The Future of Payment Gateways in India? 

India’s payment industry is evolving rapidly. Key trends include:

• UPI Dominance: UPI is already the backbone of digital payments, and gateways are integrating it deeply.
  
  

• BNPL (Buy Now, Pay Later): Rising as an alternative to credit cards.
  
  

• Cryptocurrency Payments: These payments are still under regulation but may become mainstream in the future.
  
  

• Rural Penetration: Payment gateways are expanding into Tier 2 and Tier 3 cities.
  

With government backing of digital initiatives, the future looks bright for businesses using payment gateways.

Final Words

Payment gateways have become the backbone of India’s growing digital economy. Whether you are a small seller, freelancer, or large e-commerce brand, selecting the right payment gateway will directly impact customer trust and business growth.

From Razorpay’s startup-friendly tools to Paytm’s wallet advantage and CCAvenue’s global reach, India has no shortage of options in 2025. The key is to match your business goals with the right provider.

Frequently Asked Questions About Payment Gateways in India 

1. Can I integrate multiple payment gateways on my website?
Answer.  Yes, many businesses use multiple gateways to reduce downtime and offer more choices.

2. Are payment gateways safe?
Answer. Yes, payment gateways are safe as long as they follow RBI and PCI DSS guidelines. Always choose reputable providers.

3. Do gateways support international payments?
Answer.  Yes, gateways like PayU, Razorpay, and CCAvenue allow multi-currency transactions.

4. Are gaming or subscription-based businesses supported?
Answer. Yes, most modern gateways offer recurring billing for subscriptions and entertainment apps.