Best Payment Gateways for Small Business in India(Compared)

The sudden growth in online payments in India has shown how important it is for an online business to integrate payment gateway to sustain. 

But with so many options to choose from, it can get confusing.

Because, choosing the best payment gateway for your business in India is equally vital as it directly affects your business’s growth.  

Today, in this post I will compare the top payment gateways in India and help you choose the right one that fits your business needs.

Best Payment Gateways in India for small business

Best payment gateways for Small Business in India are

  • Razorpay
  • Cashfree
  • Instamojo
  • PayU
  • Paytm

It was once said by Bill Gates: 

“If your business is not on the Internet, it will be out of business very soon”. 

It fits perfectly in the current scenario.

That is why: 

Taking your business online in this era has become more of a necessity rather than a status symbol.

As most people prefer to buy things online because they find it more convenient. 

And also it is good from a business point of view because they can showcase all the products and their features to customers without a problem 24*7.

If you haven’t created a website for your business yet, then check this step by step guide – How to start a blog/website in India


Accepting payments on your website is also very crucial because not many people will be willing to request a quote.  

And then carry forward the deal after exchanging a lot of emails or phone calls. 

It just kills the purpose of taking your business online. 

This is where the Payment Gateways comes into play. 

Affiliate Disclosure: Some of the links in this post might be affiliate link, which may earn us commission at no extra cost to you.

What is a Payment Gateway?  

what is payment gateway

Payment Gateway is a technology that allows merchants to receive payments from their customers online. 

When you pay for your order online on any app or website (Amazon, Zomato, Swiggy) you are knowingly and unknowingly doing it through a payment gateway.  

Best Payment Gateways For Small Business in India Comparison Table

Payment Gateway ProviderSetup ChargesPayment Gateway Charges in IndiaLink for Signup
RazorpayFree2% (Domestic Debit &Credit Cards, UPI, Net banking)
3% (Diner & Amex Cards, International Cards, EMI and Corporate Credit cards.)
Sign Up for RazorPay
CashfreeFree1.90% (Domestic Visa, Maestro, Mastercard, Google Pay, Net banking, PhonePe, Amazon pay)

0% for UPI and Rupay

2.95% (Diners and American Express)
Sign Up From Here
InstamojoFree2% + Rs 3 For UPI, Domestic Cards, Netbanking and Wallets.

3% + Rs 3 for International Cards & American Express.

5% + Rs 3 for Smart Pages.
Sign Up From Here
PayTm Free0.4% for below Rs 2000 and 0.9% for above Rs 2000 Domestic debit cards ( Visa & Mastercard)

1.9% for Net banking, paytm wallet & credit card. 
Sign Up From Here
PayUFree2% (Domestic Debit &Credit Cards, Net banking, wallets)

3% (Diners Card & American Express)
Sign Up From Here
PayPal Free4.4% + currency conversion fee (up to $3000)

3.9% + fee based on currency ($3000 – $10,000)
Visit Here
CC Avenue Free (Paid for Enterprises)
Annual Maintenance Charges (Rs 1200)
2% (Domestic Debit &Credit Cards, Net banking, wallets)

0% Rupay and UPI

4.99% International Cards (Mastercard, Visa Credit & Debit)

4% American Express & Diners Club
Visit here

1. Razorpay (Best Payment Gateway for Small Business in India) 

Razorpay - Best payment gateway in India for small business

Razorpay is definitely one of the top payment gateways in India that is used by over 50 lakh businesses already. 

Be it a startup, small scale or medium scale business, Razorpay can handle it all. 

They have a very easy to use dashboard from where you can manage everything.  

Key Features 

  • Instant Activation

    You can literally set up everything within 2 minutes. It has a completely online & paperless documentation process.  
  • No Setup & Annual Maintenance Fee 

    Yes, you heard it right. You don’t have to pay a single dime to get started with Razorpay and also they don’t even charge any annual maintenance fee.
  •  Easy Integration

    One of the best features of Razorpay is that it can be easily integrated with popular CMS platforms that are used to make websites.

    Like – Shopify, WordPress, Wix, Woocommerce. 
  • Flash Checkout

    Customers don’t have to put in the bank details every time, it stores the card details and makes the process even faster and hassle free. 
  • Robust Security

    Security is the top concern for merchants while accepting digital payments, as one bad move can harm their brand image big time.

    Razorpay is PCI DSS level 1 compliant that ensures your data is safe.  


  • Accepts over 100+ payment methods. Including the widely accepted payment option of UPI as well.
  • An easy to use Dashboard with in depth reporting and analytics. 
  • Three options to accept payments: Payment links, page and buttons. 
  • Option to accept recurring payments that have proved to increase revenue for many businesses.
  • API driven which makes the whole process automated. 

Razorpay Payment Gateway Charges in India

  • 2% for Indian debit and credit cards, UPI, Net banking.
  • 3% for Diner & Amex Cards, International Cards, EMI and Corporate Credit cards.

Top Brands Using Razorpay: 

Swiggy, Bookmyshow, Airtel and Hotstar. 

2. Cashfree (Payment Gateway with lowest transaction fee)

Cashfree - Best payment gateway for small business in India

Cashfree is the best payment gateways for small businesses in India because of its lowest transaction charges. 

Which is one of the reasons for its sudden increase in customer base.  

Over 1,00,000 businesses use Cashfree.

Key Features

  • Recurring Payments 

    Suppose you sell a service on an annual/monthly basis. You can take recurring payments from your customers.
  • Instant Refunds 

    Instant refunds is one of the highlights of Cashfree, because generally refunds take 2-3 business days to reflect in customers bank accounts but with cashfree it’s instant.
  • Split Payout

    With cashfree you can even split payouts between two or more sellers.  


  • Accepts 120+ payment options. So, your customer will never find an excuse to not pay.  
  • It is built for high scale, as it can perform up to 3000 transactions per second. That is some high performance.
  • Best Payment Gateway in India with lowest transaction fee
  • Works even on bank holidays. 

Cashfree Payment Gateway Charges in India

1.90% for Domestic Visa, Maestro, Mastercard, Google Pay, Net banking, PhonePe, Amazon pay. 

0% for UPI and Rupay. 

3.5%+ Rs 7 for International Cards (Visa and Mastercard) 

2.95% for Diners and American Express.

3. Instamojo 

Instamojo is more than just a payment gateway. 

It also allows you to create your own online store in which the payment gateways are already integrated.  

Which starts at just Rs 10/ day. Isn’t that amazing?

Key Features

  • Online Store

    You can create your own online store. If you don’t want to strangle yourself into the work of creating a website for your online business.  
Instamojo payment gateway in india
  • Use Instamojo For Free

    One of the highlights of Instamojo is it allows you to ask your customers to pay the GST and transaction fee charges. 
    So, you exactly get the amount you asked for. That’s basically using a payment gateway for free. You can turn this option on in Instamojo dashboard.


  • Accepts 100+ payment methods, even popular wallets like Ola money, Mobikwik, Freecharge. 
  • You can create smart pages to accept payments. This allows you to create a beautiful landing page with different themes which comes with an in-built payment button.
  • Easily embed payment buttons on your blog/website with a single line of code (generated by Instamojo).  
  • Easy Integration with popular CMS platforms.

Transaction Charges 

2% + Rs 3 For UPI, Domestic Cards, Netbanking and Wallets.  

3% + Rs 3 for International Cards & American Express.

5% + Rs 3 for Smart Pages (Includes a free page builder)

4. Paytm 

Paytm has revolutionized digital payments in India to a whole new level. 

Every other street vendor these days accepts payment through Paytm. 

And you will be glad to know they have payment gateways as well. 

Key Features 

  • Widely Popular

    Already a well accepted payment channel, due to which the success rates are high.
  • Instant Activation

    Onboarding process of Paytm is very easy and paperless. Existing Paytm users can do it simply by creating a business account. 
  • Paytm Postpaid 

    Use the power of Paytm Postpaid which allows user to pay for the product later. 


  • Lifetime free for UPI and Rupay transactions.
  • Next day, money settlement.
  • Free payouts. Pay your vendors through paytm for free.  

Paytm Transaction Charges

0% for UPI  and Rupay Debit Card

0.4% for below Rs 2000 and 0.9% for above Rs 2000 Domestic debit cards ( Visa & Mastercard)

1.9% for Net banking, paytm wallet & credit card. 

2.9% International Payments

5. PayU 

PayU (formerly known as PayU Money) has been in the market since 2011. 

But have been notoriously known for their bad customer support.

Key Features

  • Hassle Free Setup   

    Onboarding process of PayU is quite hassle free and takes only about 5 minutes before you can start accepting payments.
  • Quite Secure

    PayU puts a lot of emphasis on security of their payment gateway. So, you can be rest assured of any security breach.
  • Mobile Friendly Checkout Page  

    Their checkout page is mobile friendly so it won’t matter from which platform your customers are paying you, it will always look good.


  • Accepts every major payment method 
  • UI enabled Checkout Page that makes sure the checkout page speaks to your brand image.
  • Accepts recurring payments. 
  • Supports popular CMS platforms ( WordPress, Opencart, Shopify, Magento etc)
  • Accepts international payments.


These are the best payment gateways in India for small business.

Although, it might seem intimidating to integrate them with your website but trust me these days the process has become quite simple.

It can be done with a few clicks here and there and booom.

You can start receiving payments.

If you feel confused about any process or want to know more about anything related to payment gateways.

Shoot your queries in the comment section and I will try to solve it ASAP.

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