🏦 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 UPI’s explosive adoption, the need for robust and reliable payment gateways has become critical. Whether you’re 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.

🔍 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 customer’s bank, securely processing transactions.

🇮🇳 Top 10 Best Payment Gateways in India (2025 Edition)

1. Razorpay – Most Popular Among Startups and SMBs

• Website: razorpay.com
• Supported Modes: UPI, Cards, Netbanking, Wallets, EMI
• Setup Fee: ₹0
• Transaction Fee: 2%–3%
• 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

✅ Best For: Startups, SaaS, and subscription businesses

2. Paytm Payment Gateway – Backed by a Trusted Brand

• Website: paytm.com/business
• Modes: UPI, Paytm Wallet, Cards, Netbanking
• Setup Fee: ₹0
• 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

✅ Best For: Mobile-first businesses and local merchants

3. Cashfree Payments – Best for Bulk Payouts & Fast Settlement

• Website: cashfree.com
• Setup Fee: ₹0
• Transaction Fee: 1.75% – 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

✅ Best For: Marketplaces, NBFCs, and platforms with mass payouts

4. Instamojo – Ideal for Solopreneurs & Digital Creators

• Website: instamojo.com
• Modes: UPI, Cards, Netbanking, Wallets
• Setup Fee: ₹0
• Transaction Fee: 2% + ₹3 per transaction

Pros:

• Extremely easy to use
• No website required – use payment links
• Offers online store builder and email marketing

Cons:

• Slightly high per-transaction cost
• Limited API capabilities

✅ Best For: Freelancers, content creators, and Instagram sellers

5. CCAvenue – 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

✅ Best For: Large enterprises and international businesses

6. PhonePe Payment Gateway – India’s UPI Leader Joins the Race

• Website: phonepe.com/business
• Setup Fee: Free
• Transaction Fee: Competitive UPI-based rates
• Settlement: Instant

Pros:

• India’s #1 UPI app
• Trusted by millions
• Real-time settlement

Cons:

• Still expanding developer documentation
• New player in payment gateway API market

✅ Best For: UPI-heavy transactions and mobile-first users

7. BillDesk – 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

✅ Best For: Government, utilities, and banks

8. PayPal India – Best for International Payments

• Website: paypal.com
• Setup Fee: Free
• Transaction Fee: 4.4% + currency fees
• Settlement: ~T+1–2 days to Indian bank account

Pros:

• Globally trusted
• Easy currency conversion
• Great buyer protection

Cons:

• Expensive
• Not preferred for domestic transactions

✅ Best For: Freelancers, exporters, and service providers with global clients

9. Easebuzz – 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

✅ Best For: Colleges, online course platforms, coaching centers

10. Stripe India – Developer-Friendly Global Giant

• Website: stripe.com/in
• Setup Fee: ₹0
• Transaction Fee: 2.9% + ₹5
• Settlement: 3–7 days

Pros:

• Cleanest API documentation
• Global reliability
• Advanced features like fraud detection, smart retries

Cons:

• Late settlements in India
• Support is primarily email-based

✅ Best For: SaaS, subscriptions, high-tech companies

📊 Comparison Table

🧠 How to Choose the Best Payment Gateway for Your Business?

Here’s what you should consider before selecting a payment gateway:

1. Transaction Fees: Compare UPI, card, wallet, and EMI charges.
2. Ease of Integration: Look for plugins and developer-friendly APIs.
3. Settlement Period: Faster is better, especially for startups.
4. International Payments: Choose PayPal or Stripe for global business.
5. Support & Reliability: 24/7 support can save you from revenue loss.
6. Security: PCI-DSS compliance and fraud protection are a must.

✅ Final Verdict: Which Payment Gateway Is Best?

• 💼 Startups & Tech: Razorpay or Stripe
• 📱 Mobile-first & UPI: PhonePe or Paytm
• 🎨 Freelancers & Creators: Instamojo or PayPal
• 🏫 Education & Fees: Easebuzz
• 🏢 Enterprise Scale: CCAvenue or BillDesk

📌 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.