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Top 5 Payment Gateways for merchants in India 2021

Whether it is an eCommerce website, an online business, or an offline store, facilitating the online payment options to the customers has become inevitable for the merchants in the present time. And for so many reasons, the best option to digitize the payments is a payment gateway. This article discusses the same and also the 5 best payment gateways in India.

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What is a Payment Gateway and How does it work?

A payment gateway is a technology that helps merchants to accept online payments. Its APIs make the payment transfer possible. It is a secure medium between various entities involved in payment processing.

A payment gateway can be integrated with a website or mobile application or there are other ways to accept online payments with it.

On an eCommerce website, the customer selects the products and proceeds further in the ‘cart’ where the items lie. The customer proceeds with the payment by clicking on ‘Pay now’ or ‘Pay for the items’. The next screen that comes up is the payment gateway checkout.

The customer proceeds further with his preferred payment mode from all the multiple available payment options and completes the payment.

When the customer proceeds with the checkout the order details are created and the payment details are sent to the payment gateway. The authentication process takes place with the OTP and password or on the basis of the payment mode selected.

The bank authorizes the transaction and the same response is received by the payment gateway, which in turn forwards it to the website. And thus, the payment is completed, deducted from the customer’s account, and routed to the acquiring bank. It is then settled to the merchant as per his settlement cycle.

Importance of a Payment Gateway

The payment gateway has become quite a necessity in today’s time when businesses are getting digitized. It has become essential for businesses to facilitate online payment options for customers.

The best way is to get a payment gateway. it is secure and provides multiple payment mode options. The merchants can accept the payments on their website itself and enable the best customer experience and timely delivery of the products or services.

How to choose a Payment Gateway

Consider at least the below points while choosing the payment gateway for merchants.

  • Affordability and quality of services
  • Customer Support
  • Security and reliability
  • Payment mode options
  • Reputation and trustworthiness
  • Integration service and its ease
  • Pricing plans
  • Other required features

Top 5 payment gateways for merchants in India (in random order)

There are various payment gateways in India, here is the list of the 5 best payment gateways:


Instamojo is a popular payment gateway. It has 100+ payment mode options but does not provide multi-currency support. It has available plugins for all major supported platforms. The settlements are done in 3 working days.

  • It provides support through the knowledgebase on the website, chats, and email support
  • Transaction Fee: Flat 2% + Rs 3 per transaction
  • It has no setup fees and maintenance charges.
  • The onboarding is simple.
  • You can send its payment links apart from using it on the website.



PayKun is the affordable trusted and popular payment gateway for all types of Indian businesses. The merchants use it by easily integrating with the website or mobile application, sending the payments links, and even adding the payment button to the website or blog. This payment gateway in India provides a high transaction success rate and smooth payments processing.

  • It has excellent live customer support through email, chat, and calls during business hours.
  • It has zero maintenance and setup fees.
  • PayKun payment gateway provides free integration services.
  • The transaction rates are flat 1.75% for Indian Credit/Debit cards, Net banking, UPI, and Mobile wallets
  • Flat 3% for international transactions
  • It provides multi-currency support.
  • It has 120+ payment mode options including debit cards, credit cards, mobile wallets, UPI, net banking, QR code, and EMI
  • It facilitates JS checkout, and plugins and SDKs supporting all major platforms.
  • The settlement time period is t+1/2/3 working days (t is the transaction date). It provides timely settlements.
  • The merchant dashboard tool helps with analytics, records, reports, and transaction management. Tracking, monitoring, and service/product delivery become easy with the tool.
  • Simple assisted onboarding




Razorpay is an easy way to process payments with its payment products suite. You can receive easy payments on your website or mobile apps. It is trusted by various types of merchants for their businesses.


  • It facilitates 100+ payment mode options including credit card, debit card, wallets, UPI, and net banking.
  • You can integrate it or send its payment links to accept online payments. Also, you can add the payment buttons to your website.
  • The eCommerce plugins and SDKs make the integration easy
  • Settlements are done in 3 business days
  • Dashboard tool is available for analysis and transaction monitoring
  • There is no setup fee or annual maintenance fee.
  • Transaction fee: Flat 2% for Indian Credit/Debit cards, Net banking, UPI, and Mobile wallets
  • Transaction fee: 3% for International Credit and Debit cards
  • Email, chatbot, and IVR customer support are available along with the Knowledgebase on the official website



This payment gateway provides various payment mode options and is one of the popular payment gateways in India. The features of CCAvenue includes the following:

  • The payment modes available are – 6 Credit Cards, 58+ Net Banking, 97+ Debit Cards, 13 Prepaid Instruments, and 15 Bank EMI
  • It supports all major foreign currencies and provides multi-lingual checkout
  • It has Plugins and SDKs for various platforms

There are 2 pricing plans:

  • Privilege Plan –

Setup fee: 30000 (transaction rates discussed by the CCAvenue)

  • Startup Pro Plan –

Setup fee: Zero

3.00% on MasterCard & Visa Credit / Debit Cards (International)

3.00% on Corporate / Commercial Credit Cards (Domestic)

4.00% on American Express / Amex EMI & Diners Club

4.99% Multi-currency

Others: Flat 2%

Annual Software Up-gradation Charges (A.S.U.C): 1200


Email and Chat Support


Cashfree is among the top payment gateways in India. It has 100+ payment modes and an international payment gateway. Of course, it provides integration kits for various platforms. It has chargeable instant settlement options. By default, the settlements are done within 3 working days.

  • The Transaction discount rates are as below:

UPI, Digital wallets, Net banking, and selected Credit/Debit cards -1.95%

Paylater and Cardless EMIs – 2.5%

international Credit/Debit cards. – 3.5% + INR 7

Dinner Club and American Express flat 2.95%

  • You can integrate it or send its payment links to accept online payments. Also, you can add the payment buttons to your website.
  • The eCommerce plugins and SDKs make the integration easy
  • Dashboard tool is available for analysis and transaction monitoring
  • Support: Online knowledgebase available

How to get a Payment Gateway in India?

You may first contact the payment gateway that suits your business requirements and discuss the same with them. Further, get registered and follow the onboarding process as guided by them. You would need to submit the KYC documents including the photo ID, address proof, business ID, bank document, bank details, website/app, and other documents based on your business model and respective payment gateway requirements. After the account gets activated you may start processing the payments for your online business.

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