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Top 12 Best Payment Gateways in India for 2022

    Are you searching for the right payment gateway service provider for your business? If yes, find here a list of top payment gateways in India for online transactions for small businesses.

    Payment gateway service providers in India are increasing fast. The demand for online transactions is increasing day by day.

    Due to the advent of payment gateways, selling products online in India at present is much easier. You just need an online store and a payment gateway to start selling your product online on your own.

    12 Top Payment Gateways in India 

    Here is the list of best payment gateways in India for small and midsized businesses:

    1. Razorpay

    Razorpay is an online payment gateway that allows Indian businesses to collect payments online through credit cards, debit cards, net banking, and popular wallets including JioMoney, Mobikwik, PayUmoney, Airtel Money, FreeCharge, Ola Money, and PayZapp.

    The company was founded by an IIT Roorkee alumni. They have both a free plan and an enterprise plan.

    Set up fees: No fees are charged for set up for Standard Plan.

    Popular Clients: Quikr, NIIT, Yatra, Goibibo.

    Vist Razorpay for Free Trial

    2. Instamojo

    Instamojo started its operation in India in the year 2012. Within a very short time, the company has become one of the largest payment gateway service providers in India.

    They presently power more than 300000 businesses in India.

    The security is as good as banking institutions.  Instamojo provides a PCI-DSS compliant online payment gateway environment. It is the easiest to operate and is strongly recommended for small businesses.

    You can create Free Instamojo Account Here 

    3. PayUmoney

    PayUmoney is another very popular payment gateway company for small businesses in India. They enable small businesses to integrate online payment gateway services seamlessly.

    In addition to this, the transactions with PayUmoney are secured with 128 bit SSL encryption.

    You can create Your Free PayuMoney Account Here 

    4. CC Avenue

    In India, nearly 85% of Indian e-commerce merchants avail payment gateway services of CC Avenue. MakeMyTrip, Naukri, Myntra, Snapdeal among many others use CC avenue services.

    Set up fees: The Startup pro plan is free. However, there is a paid privilege plan.

    Popular Clients: MakeMyTrip, ClearTrip, Naukri, AirAsia, Yatra, redBus, Myntra, Snapdeal, etc.

    5. Citrus

    Founded by Satyen Kothari and Jitendra Gupta, Citrus at present is one of the top payment gateway service providers in India. Airtel, Etihad, Healthkart, Localbanya among many companies use Citrus services in India.

    Set up fees: Not Required, Free

    Popular Clients: ProfitBooks, Emirates, Etihad, Airtel

    6. EBS

    E-Billing Solutions (EBS) established in the year 2005 is headquartered in Mumbai. EBS now is a fully owned subsidiary of Ingenico Group.

    Set up fees: Ranges from 4799 Rupees to 23999 Rupees depending on the plan you choose.

    Popular Clients: BabyOye, Snapdeal, FirstCry

    7. Direcpay

    Basically, Direcpay is an arm of the Times of Money (Times Group). It is one of the first Indian payment solution companies providing credit card payment gateways in India.

    This payment gateway is integrated with Debit Cards, Net Banking & Mobile payments along with a fast, reliable, and secure passage for processing eCommerce payments.

    With some of the lowest fees in the market, DirecPay has some distinct advantages to drive your online business in India.

    Set up fees: 3 Plans ranging from zero to 20000 Rupees

    Popular Clients: Google India, PolicyBazaar,, Indiatimes, PayTM, etc.

    8. PayuBiz

    PayU is a global company owned by Naspers. With an impressive conversion rate of over 12%, Payubiz is a very popular payment gateway in India. Snapdeal, Ola, Foodpanda, Groupon are some of the companies among many who are using Payu payment gateway services.

    Set up fees: The price ranges from Rs. 4900 to Rs. 29000.

    Popular Clients: Jabong, BookMyShow, Freecharge, Zomato, Goibibo, Olx, Ola, ShopClues, Pepperfry

    9. Mobikwik

    Mobikwik payment gateway formerly Zaakpay is a simple and powerful payment solution. It starts accepting payments for your online business instantly. They have two plans. One is for Small Businesses and another for enterprises.

    Set up fees: No fees are charged for set up

    Popular Clients: Uber, Zomato, Trip Factory, Business World.

    10. Atom

    Atom started in the year 2006 is now a very serious player in the payment gateway service sector in India. At present they are powering more than 1,00,000 small businesses pan India.

    They have two plans as a Standard Plan aimed at startups and another Enterprise Plan.

    Set up fees: Free for Standard Plan and 2400 Rupees for Enterprise Plan.

    Popular Clients:  BigBazaar, Religare, Spicejet, IRCTC, Reliance Securities.

    11. fonePaisa

    fonePaisa is a payment gateway solution startup headquartered in Bangalore. It provides secure and real-time payment and accounts reconciliation solutions for organizations of all sizes and industries.

    In addition, it also offers smooth, integrated on-demand payments for online, in-app, and brick & mortar merchants, with consumer-side authentication on their smartphones.

    Set up fees: Negotiable

    Popular Clients: TTK Prestige

    12. Cashfree Payment Gateway

    Cashfree is presently becoming a very popular payment gateway in India. It is based in the city of Bangalore in India.  It accepts both domestic and international payments.

    This payment gateway offers 100+ payment options. Additionally, through Cashfree, you can offer customers the convenience of buy Now, pay later facility.

    Setup Fees: No setup and maintenance fees

    Popular Clients: Zomato, Cred, Delhivery, Xiaomi, and many more.

    As you see there are plenty of payment gateways catering to the Indian market, it is getting difficult to choose the top 10. Below we have listed the top 10 payment gateways in India in random order.

    How Payment Gateway Works:

    When a payment is done through a payment gateway, the seller’s website sends the debit/credit card details to the payment gateway. The payment gateway verifies the details provided by the customer with the relevant bank.

    If the details match with the bank records, the payment gateway then transfers the amount from the customer’s bank account to the seller’s bank account for confirmation. The payment gateway then verifies the details from the bank and the amount gets transferred from your bank account to the merchant’s bank account.

    The process of online payment gateway transactions involves three players. They are distributors, collectors, and aggregators.

    They all help you to easily accept payments online, however, they differ when it comes to payout, fees, and contracts.

    Find below how they work while processing your online payment:


    A Distributor delivers one single interface to one or more online payment methods.

    You need to contact the bank or financial institution and negotiate commission rates, fees, and payout terms.


    A Collector delivers one single interface to one or more payment methods does collect payouts on your behalf but does not set commission rates or fees.

    They enable you to streamline payout for different payment methods (cards, bank transfers, wallets).


    An Aggregator delivers one single interface to one or more payment methods, collects the payouts and contracts with banks or financial institutions.

    You only would need to contract with the Aggregator. They set your transaction fees.

    Steps to Follow to Select the Best Payment Gateway in India

    Before we proceed let us first understand which important factors to consider in choosing the right payment gateway.

    In the E-commerce site, one has to consider the following factors for their payment gateway.

    1) Easy transaction for your customer.
    2) Less commission.
    3) Availability of many payment options.
    4) Easy integration.
    5) Refund and cashback policies.

    There are mainly three elements in processing transactions you must know before selecting a payment gateway for your online business. The setup fees, annual maintenance fees, and transaction fees.

    For small businesses, many companies are not charging any fees for set up and annual maintenance fees. However, for enterprises fees are charged and you should negotiate as much as you can.

    Finally, it is advisable to have at least two payment gateway providers for your online business transactions. If for any reason, one does not work you must have a backup.

    Indian Payment Gateway – FAQs

    What is a Payment Gateway?

    A payment gateway is a tool that allows businesses to accept online payments. One can receive money from their website or app or landing page. In other words, customers get an option of paying online for buying products and services

    It is essentially a third-party software created to transfer buyer’s payments securely from their accounts to the seller’s business account.

    What are the main types of Payment Gateways Available in India?

    Broadly, it is seen four types of payment gateways operate in India.

    • Hosted payment gateway
    • Self-hosted payment gateway
    • Local bank integration payment gateway
    • API hosted payment gateway

    Which Payment Gateway is the best in India?

    It is extremely difficult to sing out one. However, as per industry experts and popularity, the three best payment gateways in India are Razorpay, PayU, and Instamojo.

    Is there any free payment gateway in India?

    Unfortunately, the answer is no. There is always a transaction charge for online money processing.

    What is the cheapest payment gateway in India?

    A present, Cashfree offers the lowest transaction charges in India. The present rate is as low as 1.75% per transaction.

    Did we miss out on anything? We would like you to share your personal experiences with Indian Payment Gateway Service providers. Let us know which one is the best according to you.

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