Razorpay vs PayU vs Cashfree: Which Payment Gateway Should You Pick in 2026?

If you are setting up online payments in India, you will almost certainly end up choosing between these three. They charge almost the same rate and all promise fast onboarding, and their websites all say they are the best.

So instead of another feature list, this comparison runs them through six rounds that actually change your monthly bill or your workload. It ends with a verdict for each type of business.

Short answer: Cashfree has the lowest standard rate and the biggest new-merchant offer. Razorpay has the most complete toolkit for startups and SaaS. PayU suits sellers who depend on EMI and Pay Later. Read on to see which trade-off fits you.

At a Glance

All rates are before 18% GST. Offers have conditions and end dates, so confirm them on each gateway's site.

Round 1: Standard Fees

Razorpay charges a 2% platform fee on most domestic methods (cards, UPI, net banking, wallets), plus GST. That's 2.36% in total. International cards, Amex and Diners cost 3%. (Razorpay)

PayU publishes the same structure: 2% domestic and 3% for international cards, Amex and Diners, with no setup or annual fee. (Skydo)

Cashfree lists a standard rate of 1.95%. (Cashfree)

What 0.05% is worth: on ₹10 lakh of monthly sales, Cashfree's lower rate saves ₹500 a month before GST, or ₹7,080 a year including GST. For a small seller doing ₹1 lakh a month, it's about ₹708 a year.

Round winner: Cashfree, by a small margin that grows with volume.

Round 2: Launch Offers

Both Razorpay and Cashfree are paying to win new merchants right now.

1. Razorpay: a 0% platform fee for the first 90 days after activation, or until ₹5 lakh of domestic sales, whichever comes first. It applies to accounts activated on or after 1 July 2026. Amex, corporate cards and prepaid cards are excluded. (Razorpay)
2. Cashfree: a 0% platform fee on domestic transactions up to ₹20 lakh of cumulative sales, for merchants who signed up on or after 21 July 2026. (Cashfree docs)
3. PayU: no comparable public offer at the time of writing.

On paper, Cashfree's cap is four times bigger. But a fast-growing seller may cross ₹5 lakh on Razorpay well before 90 days, while a slow starter may not reach either cap. Don't pick a gateway for its offer alone. It ends, and the standard rate is what you live with.

Round winner: Cashfree for the size of the cap.

Round 3: Features You Will Actually Use

Razorpay has the widest set of business tools in one dashboard. It's a good fit if you want subscriptions, invoices and payment pages without stitching products together.

PayU is strongest on affordability options. If your average order is above ₹10,000 and customers want to pay in instalments, that matters more than a small rate difference. Note that some EMI products need a separate agreement.

Cashfree stands out on payouts. Marketplaces, gig platforms and lending businesses that send money out as well as collect it get both from one provider.

Round winner: depends on your model. Razorpay for SaaS and startups, PayU for EMI-led sales, Cashfree for collect-and-pay businesses.

Round 4: International Payments

All three can accept international cards, but the setup differs.

1. Razorpay: international cards at 3%. International payments typically settle in about seven business days, against about two for domestic. (Razorpay)
2. PayU: international cards at 3% plus GST, with no setup or annual fee.
3. Cashfree: international collection in 140+ currencies with settlement in INR, switched on through its team. Cashfree also holds RBI authorisation as a cross-border payment aggregator (PA-CB). (Cashfree)

Under RBI's 2025 payment aggregator rules, cross-border aggregation is its own regulated category. If exports are a large part of your business, ask any gateway to confirm its cross-border authorisation and how it issues export payment documents.

Round winner: Cashfree for exporters, with Razorpay and PayU fine for occasional foreign orders.

Round 5: Getting Your Money

Standard settlement speed is close across all three. The difference is in instant settlement pricing, which varies by account. If daily cash flow matters, get the instant settlement rate in writing before you sign up.

Round winner: tie.

Round 6: Ease of Getting Started

All three offer online sign-up and digital KYC. Typical documents are the same:

1. PAN of the business or owner
2. Business proof (GST, Udyam or incorporation certificate)
3. Bank account proof
4. A live website or app with refund, privacy and contact pages

Razorpay is widely seen as the easiest for developers, thanks to its documentation and test mode. Cashfree says new businesses can start accepting payments in about two hours. PayU onboarding is straightforward for standard plans, but can take longer for EMI and custom products.

Round winner: Razorpay, narrowly, for developer experience.

The Verdict: Which One Should You Choose?

A practical tip: many growing businesses keep two of these live, one as the main gateway and one as a backup. It protects you during outages and gives you leverage when negotiating rates.

Questions People Ask When Comparing

Is Razorpay better than PayU?

For startups and SaaS, Razorpay usually wins on tools and ease of setup. For businesses that rely on EMI and Pay Later, PayU is often the better fit. Their standard rates are the same.

Is Cashfree cheaper than Razorpay?

Yes, at standard pricing. Cashfree lists 1.95% against Razorpay's 2%. Both charge no setup or annual fee.

Which has the lowest charges for UPI?

Check each gateway's current rate card. Razorpay charges its standard 2% platform fee on UPI. Rates and offers for UPI change often.

Can I switch gateways later?

Yes. If you use a plug-in on Shopify or WooCommerce, switching is mostly a matter of new KYC and changing a setting. Custom integrations need some developer work.

Can I use two payment gateways at once?

Yes. Many businesses run two gateways for backup and to route payments to whichever gives better success rates or pricing.

Bottom Line

Razorpay, PayU and Cashfree are all reliable, RBI-regulated choices with no setup or yearly fees. The real difference is fit: Razorpay for an all-in-one startup toolkit, PayU for EMI-heavy sales, and Cashfree for the lowest standard rate, payouts and cross-border payments.

To see how these three compare with seven other gateways, read our full guide to the best payment gateway in India. If you need your business registration, GST or website policies sorted before gateway KYC, the StartupFlora team can help.

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.