Payment Gateway Options and Pricing in India (2025) | Sky Career Guidance

Payment Gateway Options and Pricing in India (2025) | Sky Career Guidance

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Introduction

In India’s rapidly growing digital economy, payment gateways are critical for businesses to facilitate seamless, secure, and efficient online transactions. With the surge in e-commerce, UPI adoption, and diverse payment preferences, choosing the right payment gateway is pivotal for businesses of all sizes. A payment gateway acts as a secure intermediary between customers, merchants, and banks, processing payments via various methods like UPI, credit/debit cards, net banking, and digital wallets. This article explores popular payment gateways in India, their pricing, features, and key considerations for selection, ensuring businesses can optimize transaction costs and customer experience.

Key Payment Gateways in India

Below is a detailed overview of leading payment gateways in India, including their supported payment modes, transaction charges, fees, and standout features, based on the latest available data as of 2025.

1. Razorpay

  • Supported Payment Modes: Credit/Debit Cards (Visa, Mastercard, RuPay, AMEX), UPI, Net Banking (50+ banks), Wallets (Paytm, PhonePe, etc.), EMI, Pay Later
  • Transaction Charges:
    • Domestic: 2% per transaction + 18% GST
    • International: 3% per transaction + 18% GST (includes AMEX and EMI options)
  • Setup/Annual Fees: None
  • Features:
    • Developer-friendly APIs and plugins for Shopify, WooCommerce, and other platforms
    • Flash Checkout for faster transactions
    • Supports 100+ currencies for international payments
    • Automated recurring payments and subscription billing
    • Robust fraud detection and real-time analytics
  • Best For: Startups, SMEs, and enterprises needing versatile payment solutions and easy integration.

2. Paytm for Business

  • Supported Payment Modes: Credit/Debit Cards (Visa, Mastercard, AMEX, etc.), UPI, Net Banking, Paytm Wallet, Paytm Post-paid
  • Transaction Charges (Small & Medium Business Plan, +18% GST):
    • UPI: 0%
    • Paytm Wallet/Post-paid: 1.99%
    • Debit Cards: 0.4% (below ₹2,000), 0.9% (above ₹2,000)
    • Credit Cards: 1.99%
    • EMI: 2.99%
    • Enterprise: Custom pricing (contact Paytm)
  • Setup/Annual Fees: None
  • Features:
    • Seamless integration with e-commerce platforms like Shopify and WooCommerce
    • High payment success rate (claimed 100%) and extensive user base
    • Supports advertising, gift vouchers, and subscription payments
    • Detailed reporting and customizable dashboard
  • Best For: Businesses targeting a large Indian customer base, especially UPI users.

3. CCAvenue

  • Supported Payment Modes: Credit/Debit Cards (Visa, Mastercard, RuPay, AMEX, Diners), UPI, Net Banking (65+ banks), Wallets, Central Bank Digital Currency
  • Transaction Charges (Start-up PRO Plan, +18% GST):
    • Domestic (Cards, UPI, Net Banking, Wallets): 2%
    • AMEX, Diners Club, EMI: 4%
    • International: 4.99%
    • Setup/Annual Fees: ₹1,200 annual maintenance (waived for the first year); Privilege Plan has a ₹30,000 setup fee
  • Features:
    • Supports 200+ payment modes and 18+ languages
    • Multi-currency support for global transactions
    • Advanced fraud detection (F.R.I.S.K. system) and smart analytics
    • Omni-channel payment tracking via mobile app
  • Best For: Large enterprises and businesses with international customers.

4. PayU

  • Supported Payment Modes: Credit/Debit Cards (Visa, Mastercard, AMEX, Diners), UPI, Net Banking, Wallets (Paytm, JioMoney, etc.), EMI, BNPL
  • Transaction Charges (+18% GST):
    • Domestic (Cards, UPI, Net Banking, Wallets): 2%
    • International, AMEX, EMI: 3%
  • Setup/Annual Fees: None
  • Features:
    • Supports 150+ payment modes and 100+ currencies
    • One-click checkout and custom checkout flows
    • API playground for real-time testing
    • Strong fraud detection and local customer support
  • Best For: E-commerce platforms and businesses with global reach.

5. Cashfree Payments

  • Supported Payment Modes: Credit/Debit Cards (Visa, Mastercard, RuPay, AMEX), UPI (PhonePe, Google Pay, etc.), Net Banking (90+ banks), Wallets, BNPL, Pay Later
  • Transaction Charges (+18% GST):
    • Standard (Cards, UPI, Net Banking, Wallets): 1.95%
    • EMI/Cardless EMI: 1.50%
    • International Cards: 2.99%
  • Setup/Annual Fees: None (custom pricing for high-volume businesses)
  • Features:
    • 180+ payment modes with instant refunds (24-48 hours)
    • Payment links for SMS, WhatsApp, and social media
    • Auto-collect for franchisee businesses and robust reporting
    • Supports international payments in 140+ currencies
  • Best For: Businesses needing fast settlements and multi-channel payment solutions.

6. PhonePe Business

  • Supported Payment Modes: Credit/Debit Cards (Visa, Mastercard, RuPay), UPI, Net Banking, Wallets
  • Transaction Charges:
    • Standard: 1.95% per transaction + 18% GST
    • Limited-time free plan for MSMEs (verify with PhonePe)
  • Setup/Annual Fees: None
  • Features:
    • Easy integration with Shopify, WooCommerce, and OpenCart
    • Dynamic QR code creation and autopay features
    • Multi-language support and user-friendly dashboard
    • High success rates and personalized support
  • Best For: Small businesses and enterprises with high UPI transaction volumes.

7. Instamojo

  • Supported Payment Modes: Credit/Debit Cards, UPI, Net Banking, Wallets
  • Transaction Charges (+18% GST):
    • Domestic: 2% + ₹3 per transaction
    • International: 3% + ₹3 per transaction
    • Setup/Annual Fees: None
  • Features:
    • Instant onboarding with minimal documentation
    • Payment links for social media and messaging platforms
    • Online store builder and smart analytics
    • Ideal for digital products and small businesses
  • Best For: Startups, freelancers, and SMEs seeking simplicity.

Note: Pricing and fees are subject to change. Always verify the latest details on the official websites of the respective payment gateway providers.

Key Considerations for Choosing a Payment Gateway

Selecting the right payment gateway involves evaluating several factors to align with your business needs:

  • Transaction Fees: Compare per-transaction costs, especially for high-volume businesses. For example, Cash free’s 1.95% fee is lower than Razorpay’s 2% for domestic transactions.
  • Payment Modes: Ensure support for popular methods like UPI, digital wallets, and cards, as UPI accounts for over 8 billion monthly transactions in India.
  • Integration Ease: Look for gateways with no-code plugins (e.g., Shopify, WooCommerce) or robust APIs for custom integrations.
  • Security: Prioritize RBI-approved gateways with tokenization, 3D Secure, and AI-powered fraud detection to ensure trust and compliance.
  • Settlement Speed: Cash free offers 24-48 hour settlements, while others like Razor pay and PayU follow a T+2 cycle for domestic transactions.
  • International Support: For global businesses, choose gateways like CCAvenue or PayU with multi-currency support.
  • Customer Support: Reliable support is crucial for resolving integration or transaction issues, with PhonePe and Cashfree noted for strong support.
  • Scalability: Enterprises may prefer PayU or Razorpay for advanced features like bulk disbursements and custom pricing.
Payment Gateway Options and Pricing in India (2025) | Sky Career Guidance
Payment Gateway Options and Pricing in India (2025) | Sky Career Guidance

Recent Trends in Payment Gateways

  • UPI Dominance: UPI’s popularity continues to grow, with gateways like Paytm and PhonePe offering 0% fees for UPI transactions to attract merchants.
  • Instant Settlements: Cashfree’s instant refund and payout features are setting new standards for transaction speed.
  • BNPL and EMI Options: Buy Now, Pay Later and EMI options are increasingly supported by gateways like Cashfree and PayU to boost conversions.
  • Payment Links: Gateways like Instamojo and Cashfree enable merchants to collect payments via WhatsApp, SMS, or social media, reducing cart abandonment.
  • AI and Analytics: Razorpay and CCAvenue offer advanced analytics for real-time insights, helping businesses optimize payment flows.

Sample Code for Payment Gateway Integration

Below is a sample HTML and JavaScript code snippet demonstrating a basic Razorpay integration for a checkout button. This can be adapted for other gateways with their respective APIs.

<!DOCTYPE html>
<html lang="en">
<head>
    <meta charset="UTF-8">
    <meta name="viewport" content="width=device-width, initial-scale=1.0">
    <title>Razorpay Payment Integration</title>
    <script src="https://checkout.razorpay.com/v1/checkout.js"></script>
</head>
<body>
    <button id="payButton">Pay Now</button>
    <script>
        document.getElementById('payButton').onclick = function(e) {
            var options = {
                "key": "YOUR_RAZORPAY_KEY_ID", // Replace with your Razorpay Key ID
                "amount": 50000, // Amount in paise (e.g., 50000 = ₹500)
                "currency": "INR",
                "name": "Your Business Name",
                "description": "Test Transaction",
                "image": "https://your-logo-url.com/logo.png",
                "handler": function (response) {
                    alert("Payment Successful! Payment ID: " + response.razorpay_payment_id);
                },
                "prefill": {
                    "name": "Customer Name",
                    "email": "customer@example.com",
                    "contact": "9999999999"
                },
                "theme": {
                    "color": "#3399cc"
                }
            };
            var rzp = new Razorpay(options);
            rzp.open();
            e.preventDefault();
        };
    </script>
</body>
</html>

Instructions:

  1. Replace YOUR_RAZORPAY_KEY_ID with your actual Razorpay Key ID from the Razorpay Dashboard.
  2. Adjust the amount, currency, and other fields as needed.
  3. Test in a development environment before going live.
  4. Refer to the official Razorpay documentation for advanced features like recurring payments or custom UI.

Conclusion

Choosing the right payment gateway in India requires balancing cost, features, and business needs. Razorpay and PayU offer robust solutions for start-ups and enterprises, while Instamojo and PhonePe cater to small businesses with simple setups. Cash free stands out for affordability and speed, and CCAvenue excels in multi-currency support. Paytm’s widespread UPI adoption makes it ideal for mass-market businesses. Evaluate your transaction volume, target audience, and integration requirements, and always check the latest pricing on official provider websites to ensure accuracy.

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Tags: HTML, Coding, Coding Topics, Important Topics

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