5 Best Payment Gateways in India
The Indian e-commerce market is expected to reach a valuation of $163 billion by 2026. In this age of digital commerce, having a robust and reliable payment gateway is essential for businesses in India. Payment gateways in India are serving as the bridge between online merchants and customers, ensuring seamless and secure transactions.
Source | Five best payment gateways in India
With a plethora of options available, it can be challenging to choose the right one for your business. In this post, we will explore the five best payment gateways in India, each offering unique features to cater to different business needs.
Choosing the right payment gateway for your business
Source | Choosing the best payment gateways in India
There are various factors to consider when choosing the best online payment gateway, and here are some of them:
Payment methods supported: Firstly, make sure the payment gateway supports a broad number of payment methods. This includes major credit and debit cards, net banking, UPI (Unified Payments Interface), digital wallets, and any other local or international payment options that are relevant to your customer base.
Transaction fees: Different payment gateways in India charge different transaction fees. It's essential to understand their fee structure, including setup fees, annual maintenance charges, and per-transaction fees. Make sure to compare these costs to determine which option aligns with your budget.
Security measures: Security is paramount for choosing the best online payment gateway. Look for payment gateways that are compliant with Payment Card Industry Data Security Standard (PCI DSS) to maximise the protection of sensitive customer data. Features like two-factor authentication (2FA) and fraud detection tools are also important to look out for.
Ease of integration: The payment gateway you choose should be easy and quick to integrate into your platform. Check if it provides plugins, APIs, or SDKs that are compatible with the existing technology stack.
User experience: A seamless and user-friendly checkout experience is critical to reduce cart abandonment rates. Make sure the gateway you choose offers a smooth and intuitive interface for best online payment for customers.
Currency and international transaction: When you choose the payment gateway in India, make sure it supports multiple currencies and international transactions. This is particularly important for businesses or e-commerce companies with customers from various parts of the world.
Settlement period: Different payment gateways of India vary in settlement periods. Some disburse funds daily, while others may take a few days or more. Consider your cash flow requirements and select a payment gateway that aligns with your financial needs.
Customer support: Reliable customer support is invaluable. You may encounter technical issues or require assistance with account management, so ensure that the payment gateway offers responsive and helpful customer support.
Customisation and branding: Look for payment gateways in India that allow you to customise the payment page to match your brand's look and feel. This can enhance customer trust and loyalty.
Recurring payments and subscriptions: If your business model involves subscription billing or recurring payments, ensure to invest in the best online payment gateway that supports this feature. It simplifies the management of regular payments from customers.
Compliance with regulatory requirements: Verify that the payment gateways in India complies with the regulations set by the Reserve Bank of India (RBI) and other relevant authorities. Adhering to these guidelines is essential to avoid legal issues.
By carefully evaluating payment gateways of India against these criteria, you can make an informed choice that aligns with your business needs.
Now that we know the essential aspects to consider before choosing the best payment gateway in India, let’s look at the 5 best payment gateways in India.
Best payment gateways in India for your business
Razorpay
Source | Payment gateway in India: Razorpay payment gateway
Razorpay is one of the most popular payment gateways of India, known for its user-friendly interface and excellent customer support. Let’s look at the Razorpay payment gateway features:
It supports a large number of payment methods, such as credit and debit cards, net banking, UPI, and also digital wallets.
The Razorpay payment gateway dashboard provides real-time analytics, allowing businesses to track transactions and make data-driven decisions.
Features like international payments and subscription billing are also offered by Razorpay, making it a versatile choice for businesses of all sizes.
It charges a transaction fee of 2% plus taxes. However, the pricing may vary depending on the business monthly revenue.
Paytm
Source | Payment gateway in India: Paytm payment gateway
The Paytm payment gateway is one of India's most recognizable digital payment platforms. Here are some features of Paytm:
It offers a secure and convenient payment gateway for both small and large businesses. Paytm payment gateway can help businesses tap into a vast market.
Users can pay or ask for payment using Paytm payment gateway’s wallet, debit/credit cards, UPI, and net banking.
Paytm also offers various tools for businesses, including QR code-based payments and an easy-to-integrate API.
For startups, small and medium businesses, the Paytm payment gateway charges a Merchant Discount Rate (MDR) of 1.99% for Paytm Bank Wallet, UPI, Debit Cards such as Visa, Mastercard, Maestro and other methods. For Net Banking and EMI they charge 2.99%. For large businesses, Paytm payment gateway offers custom pricing plans.
CCAvenue
Source | Payment gateway in India: CCAvenue payment gateway
The CCAvenue payment gateway is another popular payment option in India with a wide range of features and payment options. Here are some features of CCAvenue payment gateway:
CCAvenue supports more than 200 payment methods, making it an excellent choice for businesses looking to cater to a diverse customer base.
The CCAvenue payment gateway also supports multiple currencies, making it suitable for international transactions.
It also comes equipped with robust anti-fraud features and comprehensive reporting tools to help businesses manage payments with efficiency.
As of May 2020, all transactions are charged at a standard pricing of 2% plus taxes. However, the pricing may vary based on your monthly revenue.
Instamojo
Source | Payment gateway in India: Instamojo payment gateway
If you are a small or medium-sized business, the Instamojo payment gateway is perfect for you. Some of Instamojo payment gateway features include:
Instamojo payment gateway has an easy to use interface.
It allows businesses to create payment links and share them with customers through various channels.
It supports debit/credit cards, UPI, and digital wallets, making it a versatile choice for startups and freelancers.
It also offers other services like online stores and email marketing which are helpful for businesses.
The Instamojo payment gateway offers different plans with varying transaction fees. They have the Lite Plan, which is free and charges a transaction fee of 5% plus Rs. 3. They also offer an annual plan for Rs. 3,999.
PayPal
Source | Payment gateway in India: PayPal payment gateway
The PayPal payment gateway is a globally recognized payment gateway. Here are some features of PayPal payment gateway:
The PayPal payment gateway enables businesses to accept international payments, making it ideal for e-commerce companies looking to expand their reach.
PayPal offers a seamless checkout experience and supports various currencies.
While it may have slightly higher transaction fees than some local alternatives, its global reach and trustworthiness make it a valuable option for businesses with an international customer base.
PayPal payment gateway fees can vary based on the types of transaction. For digital payments, they charge 3.49% plus 49 cents per transaction. For in-person payments with a PayPal QR code, they charge 1.90% plus 10 cents per transaction above $10; and 2.4% plus 5 cents per transaction $10 and below. Online credit and debit card payments are charged at 2.59% plus 49 cents per transaction.
Selecting the right payment gateway
Selecting the right payment gateway is integral for the success of your online business. The best payment gateways of India offer unique features and cater to different business needs.
Before choosing the best online payment gateway in India, consider factors like transaction fees, the range of payment methods supported, ease of integration, and customer support. Ultimately, the best payment gateway for your business will depend on your specific requirements and goals.
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