๐ฆ Introduction: The Rise of Digital Payments in India
Over the past decade, India has experienced a digital payment revolution. With the government’s push for a cashless economy, the rise of e-commerce, and UPIโs explosive adoption, the need for robust and reliable payment gateways has become critical. Whether youโre a startup, an e-commerce seller, a freelancer, or a large enterprise, choosing the best payment gateway in India can drastically affect your revenue and customer satisfaction.
In this article, we will explore the top payment gateways in India in 2025, their features, pricing, pros and cons, and which one is right for your business.
๐ What Is a Payment Gateway?
A payment gateway is a technology that enables merchants to accept payments online via debit/credit cards, net banking, UPI, wallets, or EMI options. It acts as a bridge between your business website/app and the customerโs bank, securely processing transactions.
๐ฎ๐ณ Top 10 Best Payment Gateways in India (2025 Edition)
1. Razorpay โ Most Popular Among Startups and SMBs
- Website: razorpay.com
- Supported Modes: UPI, Cards, Netbanking, Wallets, EMI
- Setup Fee: โน0
- Transaction Fee: 2%โ3%
- Settlement Time: T+2 days
Pros:
- Powerful dashboard and API
- Easy to integrate with Shopify, WooCommerce, etc.
- Offers subscriptions, invoices, and even payroll
Cons:
- Higher charges for international cards
- Occasional delays in settlement for new accounts
โ Best For: Startups, SaaS, and subscription businesses
2. Paytm Payment Gateway โ Backed by a Trusted Brand
- Website: paytm.com/business
- Modes: UPI, Paytm Wallet, Cards, Netbanking
- Setup Fee: โน0
- Transaction Fee: ~1.99% + GST
- Settlement: Instant options available
Pros:
- Instant settlement available
- Wide customer base already using Paytm Wallet/UPI
- Developer-friendly API
Cons:
- Requires Paytm Business KYC
- Limited features in basic plan
โ Best For: Mobile-first businesses and local merchants
3. Cashfree Payments โ Best for Bulk Payouts & Fast Settlement
- Website: cashfree.com
- Setup Fee: โน0
- Transaction Fee: 1.75% โ 2.5%
- Settlement: T+1 day, or instant with premium
Pros:
- Powerful payout APIs
- Instant settlement and same-day refunds
- Plug-and-play payment links and subscription model
Cons:
- Limited wallet support
- Not ideal for international payments
โ Best For: Marketplaces, NBFCs, and platforms with mass payouts
4. Instamojo โ Ideal for Solopreneurs & Digital Creators
- Website: instamojo.com
- Modes: UPI, Cards, Netbanking, Wallets
- Setup Fee: โน0
- Transaction Fee: 2% + โน3 per transaction
Pros:
- Extremely easy to use
- No website required โ use payment links
- Offers online store builder and email marketing
Cons:
- Slightly high per-transaction cost
- Limited API capabilities
โ Best For: Freelancers, content creators, and Instagram sellers
5. CCAvenue โ Powerful Gateway for Enterprises
- Website: ccavenue.com
- Modes: Cards, UPI, Wallets, Netbanking, EMI
- Setup Fee: Free or paid premium plans
- Transaction Fee: Varies (starting at 2%)
Pros:
- Multi-currency support
- 200+ payment options
- Strong brand trust and compliance features
Cons:
- Complicated onboarding
- Interface is outdated for small businesses
โ Best For: Large enterprises and international businesses
6. PhonePe Payment Gateway โ Indiaโs UPI Leader Joins the Race
- Website: phonepe.com/business
- Setup Fee: Free
- Transaction Fee: Competitive UPI-based rates
- Settlement: Instant
Pros:
- Indiaโs #1 UPI app
- Trusted by millions
- Real-time settlement
Cons:
- Still expanding developer documentation
- New player in payment gateway API market
โ Best For: UPI-heavy transactions and mobile-first users
7. BillDesk โ Old but Gold
- Website: billdesk.com
- Setup Fee: Custom pricing
- Modes: Cards, Netbanking, Wallets
- Transaction Fee: Varies
Pros:
- Trusted by banks and government portals
- High reliability
Cons:
- Outdated interface
- Not suitable for small businesses or startups
โ Best For: Government, utilities, and banks
8. PayPal India โ Best for International Payments
- Website: paypal.com
- Setup Fee: Free
- Transaction Fee: 4.4% + currency fees
- Settlement: ~T+1โ2 days to Indian bank account
Pros:
- Globally trusted
- Easy currency conversion
- Great buyer protection
Cons:
- Expensive
- Not preferred for domestic transactions
โ Best For: Freelancers, exporters, and service providers with global clients
9. Easebuzz โ Tailor-Made for Educational Institutions
- Website: easebuzz.in
- Setup Fee: Nil
- Modes: All common ones, plus EMI, NEFT, RTGS
- Transaction Fee: ~1.75%
Pros:
- Excellent for institutes collecting fees
- Customizable solutions
- Great customer support
Cons:
- Niche use-case focused
โ Best For: Colleges, online course platforms, coaching centers
10. Stripe India โ Developer-Friendly Global Giant
- Website: stripe.com/in
- Setup Fee: โน0
- Transaction Fee: 2.9% + โน5
- Settlement: 3โ7 days
Pros:
- Cleanest API documentation
- Global reliability
- Advanced features like fraud detection, smart retries
Cons:
- Late settlements in India
- Support is primarily email-based
โ Best For: SaaS, subscriptions, high-tech companies
๐ Comparison Table
Gateway | UPI | Cards | EMI | Settlement | Best For |
---|---|---|---|---|---|
Razorpay | โ | โ | โ | T+2 | Startups, SaaS |
Paytm | โ | โ | โ | Instant | Local businesses |
Cashfree | โ | โ | โ | T+1 | Marketplaces, payouts |
Instamojo | โ | โ | โ | T+3 | Freelancers, small sellers |
CCAvenue | โ | โ | โ | T+2 | Enterprises |
PhonePe | โ | โ | โ | Instant | UPI-centric businesses |
BillDesk | โ | โ | โ | T+2 | Government and large orgs |
PayPal | โ | โ | โ | T+2 | International freelancers |
Easebuzz | โ | โ | โ | T+1 | Educational institutions |
Stripe | โ | โ | โ | T+5 | High-tech, global SaaS |
๐ง How to Choose the Best Payment Gateway for Your Business?
Hereโs what you should consider before selecting a payment gateway:
- Transaction Fees: Compare UPI, card, wallet, and EMI charges.
- Ease of Integration: Look for plugins and developer-friendly APIs.
- Settlement Period: Faster is better, especially for startups.
- International Payments: Choose PayPal or Stripe for global business.
- Support & Reliability: 24/7 support can save you from revenue loss.
- Security: PCI-DSS compliance and fraud protection are a must.
โ Final Verdict: Which Payment Gateway Is Best?
- ๐ผ Startups & Tech: Razorpay or Stripe
- ๐ฑ Mobile-first & UPI: PhonePe or Paytm
- ๐จ Freelancers & Creators: Instamojo or PayPal
- ๐ซ Education & Fees: Easebuzz
- ๐ข Enterprise Scale: CCAvenue or BillDesk
๐ Conclusion
With India leading in digital transaction volumes globally, the right payment gateway can be your biggest business asset. Whether you are just starting or scaling, the ecosystem now offers tailored solutions for every business type. Compare wisely, check for transparency in fees, and go for a platform that fits your customer base and future goals.