Payment Gateways in India: A 2025 Guide for Businesses
The Indian digital economy is booming, and at the heart of this growth are payment gateways in India. With more people shopping online and businesses adopting digital payment solutions, choosing the right gateway is crucial for success in a competitive market.
Whether you’re a startup, SME, or large enterprise, understanding the leading payment gateways in India and how they differ can help you make an informed decision.
What is a Payment Gateway?
A payment gateway is a service that processes online payments by securely transferring payment information between the customer, merchant, and acquiring bank. In India, gateways typically support:
- UPI (Unified Payments Interface)
- Credit/Debit Cards
- Net Banking
- Mobile Wallets (Paytm, PhonePe, etc.)
- EMI and Buy Now Pay Later options
A good gateway ensures fast, secure, and compliant transactions — essential for today’s competitive digital marketplace.
Why Payment Gateways Matter in India
India’s payment landscape is diverse, multilingual, and mobile-driven. A strong payment gateway helps you:
- Offer multiple payment options
- Prevent fraud with advanced security protocols
- Improve transaction success rates
- Integrate with ERP, CRM, and e-commerce platforms
- Comply with RBI and PCI-DSS standards
Top Payment Gateways in India
1. Razorpay
Best for: Startups, SaaS, and marketplaces
Highlights: UPI, cards, subscriptions, instant settlements
Pricing: 2% per domestic transaction; 3% for international
2. Paytm Payment Gateway
Best for: High-volume consumer businesses
Highlights: Paytm Wallet, UPI, refund automation, API-friendly
Pricing: 1.8%–2.5%, depending on method
3. Cashfree Payments
Best for: Businesses needing payouts and international processing
Highlights: Cashgram, auto-collect, global payments
Pricing: 1.75%–2.5%, volume-based discounts
4. CCAvenue
Best for: Enterprises with multilingual and multi-currency needs
Highlights: 200+ payment options, supports 18 Indian languages
Pricing: 2%–3% per transaction
5. Instamojo
Best for: Freelancers, creators, digital educators
Highlights: Payment links, store setup, UPI, EMI
Pricing: 2% + ₹3 per transaction
6. A-Pay
Best for: Businesses looking for a customizable and modern payment solution
A-Pay is an emerging payment gateway in India offering full-stack infrastructure and easy integration across industries. It focuses on small and medium enterprises with high security and API flexibility.
Key Features:
- Real-time transaction tracking
- Multi-platform SDKs (Android, iOS, Web)
- Custom checkout page builder
- Fraud detection and compliance support
- Multi-currency and UPI-ready
Pricing: Custom plans available; generally competitive with major players
A-Pay is gaining popularity for its transparent pricing, developer-friendly tools, and white-label options for resellers.
7. Paykassma
Best for: International merchants accepting payments from India
Paykassma is a global payment gateway that recently expanded to support Indian markets. It is particularly appealing to cross-border sellers and digital service providers due to its focus on high-risk and international transactions.
Key Features:
- Multi-currency support including INR
- Acceptance of cards, crypto, and alternative payments
- Fraud prevention suite
- Fast onboarding for startups
- 24/7 support in multiple languages
Pricing: Starts at ~3.5% per transaction; varies by risk profile
While newer in India, Paykassma is establishing a niche with fintech startups and international platforms that need broader payment flexibility.
How to Choose the Best Payment Gateway in India
When evaluating payment gateways in India, consider:
- Supported Methods: UPI is essential; look for wallet, card, and EMI options too.
- Integration Ease: API documentation and plugin support (Shopify, WooCommerce) matter.
- Settlement Speed: Look for T+1 or instant payout options.
- Transaction Fees: Compare per-method charges and look for volume discounts.
- Security and Compliance: Must meet PCI-DSS and RBI mandates.
- Customer Support: Access to live support and technical help is crucial.
FAQs About Payment Gateways in India
Q1: What is the best payment gateway for startups in India?
A: Razorpay, A-Pay, and Instamojo are popular among startups for their ease of integration and wide payment support.
Q2: Can I accept international payments through Indian gateways?
A: Yes. Providers like Razorpay, Cashfree, and Paykassma support multi-currency and cross-border transactions.
Q3: Which gateway is best for mobile-first users?
A: PhonePe and Paytm provide mobile-optimized experiences with strong UPI support.
Q4: Are A-Pay and Paykassma safe for online payments?
A: Yes, both comply with global security standards and offer fraud detection tools suitable for Indian and international businesses.
Q5: Is UPI the cheapest payment method for businesses?
A: Typically, yes. UPI transactions often have the lowest fees and highest success rates in India.
Final Thoughts
As India moves deeper into the digital economy, the role of payment gateways in India will continue to grow. Whether you’re choosing a well-established provider like Razorpay or exploring new entrants like A-Pay and Paykassma, the right gateway can streamline operations, improve customer trust, and boost revenue.
Choose one that matches your business needs, volume, and growth plans—and you’ll be well-positioned in India’s vibrant digital marketplace.
