Best Payment Gateway in India (2026): Top 10 Compared by Fees, Features and Business Type

Quick Answer: Which Is the Best Payment Gateway in India?

There is no single best payment gateway for every business. Here is the short version:

Most Indian gateways now charge about 2% + 18% GST per successful domestic transaction, with no setup fee. So the real difference lies in success rates, settlement speed, hidden yearly charges and support, not just the headline rate.

How We Compared These Payment Gateways

To avoid a list built on brand recall, each gateway was checked against the same six points:

1. Published domestic fee: the rate on the official pricing page, before GST.
2. Fixed costs: setup fee and annual maintenance charge (AMC).
3. Payment methods: UPI, cards, net banking, wallets, EMI, Pay Later.
4. International support: whether it accepts foreign cards, and its RBI cross-border status.
5. Settlement speed: standard cycle and instant settlement cost.
6. Fit: which kind of business gets the most from it.

Pricing was taken from official websites or recent published rate cards as of 13 November 2026. Promotional offers are listed separately because they expire.

Top 10 Payment Gateways in India: Comparison Table

Editor's note: Paytm PG, PayPal, Easebuzz and Instamojo rates were not confirmed on an official page for this draft. Fill these from each live pricing page before publishing, or keep "varies by plan".

Best Payment Gateways in India: Detailed Reviews

1. Razorpay

Razorpay's standard domestic pricing is a 2% platform fee plus 18% GST, which works out to 2.36% per successful payment. It charges no setup fee and no annual maintenance charge. (Razorpay)

What stands out: strong developer documentation, subscriptions, payment links, payment pages and plug-ins for Shopify and WooCommerce. International cards and Amex/Diners cost 3%.

Current offer: new merchants activated on or after 1 July 2026 get a 0% platform fee for 90 days or up to ₹5 lakh of domestic transactions, whichever comes first. Some card types are excluded.

Watch out for: UPI is also charged at the 2% platform fee under the standard plan. Subscriptions carry an extra fee.

Best for: startups, SaaS products and D2C brands that want a fast, self-serve setup.

2. PayU

PayU publishes 2% on domestic cards, net banking and wallets, and 3% on international cards, Amex and Diners, with 18% GST on top and no setup or annual fee. (Skydo pricing summary)

What stands out: a long track record in Indian e-commerce, broad EMI and Pay Later options (including LazyPay), and room to negotiate rates at higher volumes.

Watch out for: EMI products may need a separate commercial agreement.

Best for: e-commerce businesses with a high share of EMI and card payments.

3. Cashfree Payments

Cashfree lists a standard rate of 1.95%. At the time of writing it was running a limited-period rate of 1.6%. (Cashfree)

What stands out: payouts (bulk vendor and refund payments), fast onboarding, and international collection in 140+ currencies with INR settlement. Cashfree also holds RBI authorisation as a cross-border payment aggregator (PA-CB).

Watch out for: promotional rates end. Plan your costs on the standard 1.95% rate.

Best for: price-sensitive businesses, marketplaces that need payouts, and exporters.

4. CCAvenue

CCAvenue's Startup Pro plan has no setup fee and a 2% rate on most domestic cards. It does charge an annual software charge of ₹1,200, and its Privilege plan for high-volume merchants carries a ₹30,000 setup fee. (SaaSworthy)

What stands out: one of the widest ranges of payment options, multi-currency processing and smart routing.

Watch out for: the yearly software charge, plus extra fees on some add-ons.

Best for: established businesses that need the broadest payment coverage.

5. PhonePe Payment Gateway

PhonePe's pricing page shows a standard plan at 1.99%, with custom pricing for high-volume businesses and no setup fees. (PhonePe)

What stands out: a checkout brand that most Indian UPI users already trust, and high UPI success rates.

Watch out for: its strength is domestic UPI. Check card and international support for your use case.

Best for: apps and websites where most customers pay through UPI.

6. Paytm Payment Gateway

Paytm's gateway connects to the Paytm wallet and its large offline merchant network. Its pricing varies by payment method.

Best for: businesses whose customers already use Paytm, or that sell both online and in-store.

7. Stripe India

Stripe India charges 2% for cards issued in India and 3% for cards issued outside India, with no setup or monthly fees. (Stripe)

Watch out for: new sign-ups in India have been invite-only since May 2024, and the India product does not support UPI, RuPay or Indian wallets.

Best for: SaaS businesses that already have an invite and mainly sell to card-paying customers abroad.

8. PayPal

PayPal is less a checkout gateway for Indian customers and more a way to get paid by clients overseas. Fees include a transaction fee plus a currency conversion charge.

Best for: freelancers and agencies with foreign clients who already use PayPal.

9. Easebuzz

Easebuzz serves SMEs and education institutions. It offers fee collection, payment links and payouts.

Best for: schools, coaching centres and SMEs that collect recurring fees.

10. Instamojo

Instamojo lets you collect payments through links and a simple online store, without building a website.

Best for: home businesses, creators and micro-sellers just starting out.

Payment Gateway Charges in India: What You Actually Pay

The headline rate is only one part of the cost. Every payment gateway bill in India has up to five parts:

1. Transaction fee (TDR/MDR): a percentage of each successful payment.
2. GST at 18%: charged on the fee, not on the order value.
3. Setup fee: a one-time charge, which most gateways have now dropped.
4. Annual maintenance or software charge: a fixed yearly fee, charged even in months with no sales.
5. Optional add-ons: instant settlement, subscriptions, EMI and international payments.

Worked Example: ₹2 Lakh Monthly Sales

Here is the yearly cost of collecting ₹2,00,000 a month (₹24 lakh a year) through four gateways at their standard rates, assuming all payments are standard domestic payments:

The gap between the cheapest and costliest option here is about ₹2,800 a year. That is real money, but a gateway with a 3% higher payment success rate would earn you far more than that difference. Compare success rates and settlement speed before you chase the lowest rate.

How to Choose the Best Payment Gateway for Your Business

Check Your Payment Mix

Look at how your customers pay. If 80% use UPI, UPI pricing and success rates matter more than card rates.

Calculate Total Cost

Add GST, yearly charges and add-ons to the headline rate. A low rate with a yearly fee can cost more for small sellers.

Test Success Rates

Ask each gateway for its success rate in your category. Failed payments cost more in lost sales than any fee difference.

Confirm Settlement Speed

Standard settlement is usually two business days. If cash flow is tight, check the price of instant settlement.

Verify RBI Authorisation

Make sure the gateway is an RBI-authorised payment aggregator. This protects your money, which sits in an escrow account until settlement.

Review Integration Options

Check for ready plug-ins for your platform (Shopify, WooCommerce, Wix) and for payment links if you don't have a website.

Documents Required to Open a Payment Gateway Account

Most gateways need these documents during KYC:

You will also need a live website or app with clear terms and conditions, a privacy policy, a refund policy and contact details. Gateways check these before activating your account.

Common Mistakes When Choosing a Payment Gateway

Chasing Offers

A 0% or 1.6% offer is temporary. Base your decision on the standard rate you will pay after the offer ends.

Ignoring GST

18% GST on the fee turns 2% into 2.36%. Budget with the full amount. If you are GST-registered, you can usually claim it as input tax credit.

Skipping Policies

Missing refund or privacy pages are among the most common reasons accounts get delayed or rejected during KYC.

One Gateway Only

Larger businesses often keep a backup gateway. If one has an outage, payments can switch to the other.

Latest RBI Rules for Payment Gateways (2025–2026)

On 15 September 2025, the RBI issued the Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025. These directions bring online, physical (point-of-sale) and cross-border payment aggregators under one framework. (RBI)

What this means for merchants:

1. Stricter KYC: gateways must do full due diligence on merchants, so expect more document checks during onboarding.
2. Escrow protection: customer money must sit in an escrow account and can only be used for authorised payment business.
3. Separate cross-border category (PA-CB): gateways handling export or import payments need specific RBI authorisation. Check this before choosing a gateway for international sales.
4. Dispute resolution: gateways must have a process for disputes, with timelines for refunds.

Frequently Asked Questions

Which is the best payment gateway in India for startups?

Razorpay, Cashfree and PayU are the most common choices for startups. All three have no setup fee or yearly charge and offer quick online onboarding. Cashfree has the lowest standard rate of the three.

What are the payment gateway charges in India?

Most gateways charge about 2% per successful domestic transaction, plus 18% GST on that fee. International cards, Amex and Diners usually cost around 3%.

Which payment gateway has the lowest charges in India?

Among the major gateways, Cashfree's standard rate of 1.95% and PhonePe's 1.99% are slightly below the common 2%. Always compare the total yearly cost, including fixed charges.

Can I get a payment gateway without a GST number?

Many gateways allow individuals and small sellers without GST to sign up using PAN, Aadhaar and bank details. Limits and payment methods may be restricted until you add GST.

Can I accept payments without a website?

Yes. Payment links, payment pages and UPI QR codes from Razorpay, Cashfree, Instamojo and others let you collect payments over WhatsApp, email or social media.

Is Stripe available in India?

Stripe works in India, but new merchant sign-ups have been invite-only since May 2024. It also does not support UPI or Indian wallets.

How long does payment gateway settlement take?

Standard settlement is usually two business days after the payment (T+2). Most gateways offer instant or same-day settlement for an extra fee.

Is UPI free on payment gateways?

Not always. UPI has zero MDR when customers pay a merchant directly, but gateways may still charge a platform fee for the checkout, reconciliation and support they provide. Check each gateway's UPI rate.

Conclusion

The best payment gateway in India is the one that fits your payment mix, sales volume and customers. For most startups, Razorpay, Cashfree and PayU offer the simplest start at around 2% with no fixed cost. UPI-heavy businesses should look closely at PhonePe PG. Exporters should pick a gateway with RBI cross-border authorisation.

Before you sign up, work out your total yearly cost and ask about success rates. And make sure your business registration, GST and website policies are in order so KYC goes through smoothly.

If you need help with business registration, GST or setting up your business for online payments, talk to the StartupFlora team.

Disclaimer: StartupFlora is a consultancy service provider specializing in startup consultation. We are not associated or in collaboration with any Government/Non-Government Agency / Institutions / Organisation / Department. For service payments, please ensure all transactions are made directly to our official company account.