India’s digital payments market has witnessed explosive growth, valued at approximately USD 6.83 billion in 2025 and projected to reach USD 33.5 billion by 2034. With the country recording over 48.6 billion digital transactions annually and UPI handling more than 75% of all digital payments, selecting the right payment gateway has become crucial for businesses of all sizes. This comprehensive guide explores the top payment gateways in India for 2026, helping you make an informed decision for your business.
What Makes a Payment Gateway Essential for Indian Businesses?
A payment gateway serves as a secure digital intermediary between customers and banks, enabling seamless online transactions. In 2026, modern payment gateways offer far more than simple transaction processing. They provide fraud detection, instant refunds, subscription management, multi-currency support, and detailed analytics. With UPI processing over 18.3 billion transactions and QR code-based payments dominating with a 37.18% revenue share, businesses need gateways that can handle diverse payment methods efficiently.
1. Razorpay
Razorpay has established itself as the preferred choice for startups and tech companies, serving over 5 million businesses across India. Founded in 2014, this Bengaluru-based fintech giant offers exceptional developer experience with robust APIs and seamless integration capabilities.
Key Features:
- Supports over 100 payment methods including UPI, credit/debit cards, net banking, and digital wallets (PhonePe, PayPal, Amazon Pay, MobiKwik, and more)
- Developer-friendly with comprehensive APIs, plugins, and SDKs
- Flash Checkout feature for simplified payment experience
- RazorpayX business banking solution for financial management
- PCI DSS Level 1 compliant with advanced encryption and fraud detection
- Daily, weekly, and monthly settlement options
Pricing:
- UPI transactions: Tiered pricing that reduces for high-volume merchants (below ₹25 lakh cumulative sales)
- Credit cards: Approximately 2% plus GST
- Debit cards and net banking: Around 2% plus GST
- No setup fees or annual maintenance charges
Best For: Tech startups, SaaS businesses, and companies requiring advanced subscription billing and payment automation.
2. Paytm Payment Gateway
With over 300 million users and 20 million merchants, Paytm has become synonymous with digital payments in India. The Paytm Payment Gateway leverages the massive trust and recognition of the Paytm brand, offering businesses instant credibility at checkout.
Key Features:
- Instant activation and onboarding
- Supports 100+ payment methods
- Native OTP entry for seamless checkout
- Instant refund capabilities
- Extensive plugin library for platforms like Shopify, Magento, and WooCommerce
- Integration with Paytm’s extensive wallet ecosystem
- Zero setup fees and no annual maintenance charges
Pricing:
- UPI, debit cards, net banking, wallets: 1.75% plus GST
- Credit cards and Paytm Wallet: 2.00% plus GST
- Debit card (Visa/Mastercard): 0.4% for transactions below ₹2,000, 0.9% for amounts above
Best For: Established e-commerce businesses, retail stores, and companies targeting mobile-first customers who want rapid deployment with high brand recognition.
3. Cashfree Payments
Cashfree has built a strong reputation for maximizing transaction success rates and fast settlements. Trusted by over 800,000 businesses, the platform processes more than USD 80 billion annually and is recognized for its AI/ML-powered intelligent routing.
Key Features:
- Claims 15% higher payment success rates with 3-time auto-retry feature
- Flash UPI for faster checkouts
- Instant settlements within 15 minutes
- Supports 180+ payment modes including India’s widest BNPL suite
- Four UPI options: mobile apps, desktop QR, WhatsApp links, and collect requests
- Advanced fraud prevention with PCI DSS compliance
- 24/7 customer support
Pricing:
- Platform fee: 1.95% for most transactions
- UPI on credit cards: 2.15% per transaction
- Credit card EMI: Standard TDR plus 0.25%
- Debit card EMI: 1.50%
- Cardless EMI: 1.90%
- Pay Later options: 2.20%
- No setup costs or maintenance charges
Best For: Growth-stage startups, D2C brands, and businesses focused on optimizing conversion rates and reducing checkout abandonment.
4. PhonePe Payment Gateway
Building on the trust of one of India’s most popular UPI apps with over 610 million users and 40 million merchants, PhonePe Payment Gateway offers businesses a fast and reliable payment acceptance solution.
Key Features:
- Real-time tracking of payment methods to prevent failed transactions
- AutoPay subscription solution with varying billing amounts
- Quick Checkout for seamless on-site payments
- Pay on Delivery feature for digital COD payments
- Integration with extensive PhonePe merchant ecosystem
- 99% success rate with PhonePe PG Bolt (1-second transaction experience)
Pricing:
- Free UPI transactions for individual users
- Merchants may incur interchange fees ranging from 0.5% to 1.1% depending on service category
- Daily transaction limit up to ₹1 lakh with maximum 20 transactions
Best For: Businesses wanting to leverage PhonePe’s massive user base and those requiring high-success-rate UPI processing.
5. CCAvenue
As India’s first payment gateway founded in 2000 and one of the most established players, CCAvenue offers advanced omnichannel payment solutions. The platform claims a 96.50% payment success rate and was the first in India to offer Central Bank Digital Currency for e-retailing.
Key Features:
- Supports 27 different currencies for international transactions
- Accepts 200+ payment options
- Free storefront for businesses without websites
- Contactless POS terminal on smartphones
- Multi-currency and multi-lingual checkout
- Smart dynamic routing between bank gateways
- Instant account activation
Pricing:
- Domestic credit cards (Visa/Mastercard): 1.99% plus ₹3
- Debit cards (Rupay, Visa, Mastercard): 0.9%
- Net banking: 1.99% plus ₹3
- American Express and Diners: 4%
- Wallets: 2%
- International credit cards: 3.5% plus ₹7
- Annual maintenance charges: ₹5,000
- One-time integration fee: ₹10,000
Best For: Large enterprises, international businesses, and merchants requiring advanced features like multilingual checkout and comprehensive currency support.
6. PayU
PayU serves over 500,000 businesses in India and is known for industry-best payment success rates. The platform offers two checkout options: a payment gateway for websites and app-based checkout.
Key Features:
- Supports 150+ payment modes including UPI, net banking, cards, BNPL, and wallets
- Native OTP feature for smoother authentication
- API playground for real-time testing environment
- Pay with Rewards for loyalty program integration
- Multi-currency payment acceptance
- User-friendly merchant dashboard for payment management
Pricing:
- Domestic transactions (Visa, Mastercard, net banking, BNPL, wallets): 2%
- International transactions: 3%
- American Express and Diners: Higher rates apply
- No setup or hidden fees
Best For: Medium to large businesses requiring high success rates and diverse payment options with comprehensive analytics.
7. Instamojo
Trusted by over 2 million Indian businesses, Instamojo provides a high-speed and optimized checkout experience with a clean, user-friendly interface that minimizes cart abandonment.
Key Features:
- Two checkout options: custom page or pay button
- Convenience fee option to pass transaction costs to customers
- Payment collection via SMS, Email, WhatsApp, and social media
- Easy integration with various platforms
- Simple setup for digital goods, tickets, and services
- No technical knowledge required for implementation
Pricing:
- Transparent pricing with no hidden charges
- Competitive transaction fees based on payment method
- Free gateway option when convenience fee is enabled
Best For: Small businesses, freelancers, content creators, and digital product sellers who need quick setup without technical complexity.
8. PayKun
PayKun serves over 15,000 active merchants and positions itself as offering the lowest transaction rates in the industry. The platform focuses on amplifying customer checkout experience with simple integration options.
Key Features:
- Test mode to experience features before commitment
- Multiple integration methods: plugin, payment link, or embedded button
- Fast and regular settlements
- Transparent pricing structure
- Simple onboarding process
Pricing:
- Claims to offer industry’s lowest transaction rates
- 1.75% for UPI, debit cards, and net banking
- GST applicable on all transactions
- Weekly settlements for amounts above ₹1,000
Best For: Budget-conscious small and medium businesses looking for cost-effective payment solutions with straightforward implementation.
9. BillDesk
Founded in 2000 as India’s first payment gateway, BillDesk provides financial services to businesses and government entities. The platform allows customers to pay and receive all their bills in one place.
Key Features:
- Connected with numerous Indian banks for simplified payments
- Payment reminders and alerts system
- Flexible payment scheduling
- Trusted by government entities
- Robust security infrastructure
- Comprehensive bill payment ecosystem
Pricing:
- Custom pricing available through sales team
- Pricing varies based on business requirements and transaction volume
Best For: Utility companies, government services, bill payment aggregators, and businesses requiring recurring payment solutions.
10. Zaakpay (by MobiKwik)
Zaakpay, now under the MobiKwik umbrella, offers an all-in-one payment gateway solution designed to streamline payment processing. The platform is particularly known for its automatic OTP detection feature.
Key Features:
- High payment success rate
- Instant checkout experience with auto-OTP detection
- Three checkout options: Express, Custom UI, and Seamless
- Instant installation and onboarding
- Fast settlements
- Integration with MobiKwik wallet ecosystem
- Suitable for businesses without websites or apps
Pricing:
- Competitive transaction fees
- No elaborate setup requirements
- Custom pricing for enterprise clients
Best For: Small to medium businesses seeking quick deployment and companies already using MobiKwik services.
How to Choose the Right Payment Gateway for Your Business
Selecting the optimal payment gateway requires careful evaluation of several critical factors. Consider your business size and transaction volume, as this directly impacts pricing negotiations and feature requirements. Startups might prioritize ease of integration and low initial costs, while established enterprises may need advanced analytics and multi-currency support.
Evaluate the payment methods your target customers prefer. In 2026, UPI dominance is undeniable, but certain demographics still prefer credit cards, net banking, or BNPL options. Your gateway should support the payment mix that matches your customer base.
Transaction fees significantly impact profit margins. While the difference between 1.75% and 2.5% might seem minimal, it compounds substantially with volume. Look beyond the base rate and consider GST, settlement fees, and any hidden charges. High-volume merchants should negotiate custom pricing.
Settlement speed affects cash flow. If your business model requires quick access to funds, prioritize gateways offering same-day or instant settlements, even if they charge a small premium. Integration complexity matters too, especially if you lack technical resources. Look for gateways with extensive plugin libraries and clear documentation.
Security cannot be compromised. Ensure your chosen gateway is PCI DSS compliant and offers robust fraud detection. Customer support quality becomes crucial when transaction issues arise. Test support responsiveness before committing, as payment problems directly impact revenue.
The Future of Digital Payments in India
India’s digital payments ecosystem continues evolving rapidly. The government’s financial inclusion initiatives, rising smartphone penetration, and innovations in contactless payment technologies are strengthening user confidence. The market is expected to grow at a CAGR of 16.1% through 2034, with QR code-based payments and UPI maintaining dominance.
Emerging technologies like AI-powered fraud detection, blockchain-based settlements, and voice-activated payments are becoming mainstream. Payment gateways are no longer just transaction processors but comprehensive financial platforms offering working capital, business analytics, and automated reconciliation.
Conclusion
Choosing the right payment gateway in 2026 requires balancing multiple factors: transaction costs, payment success rates, supported methods, integration ease, and customer support. Razorpay excels for tech-savvy businesses, Paytm leverages brand recognition, Cashfree optimizes for success rates, while PhonePe capitalizes on UPI dominance. CCAvenue suits international operations, and PayU offers comprehensive analytics.
For small businesses and startups, Instamojo and PayKun provide cost-effective solutions with simple integration. Established players like BillDesk serve specialized sectors, while Zaakpay offers the MobiKwik ecosystem advantage.
The key is matching the gateway’s strengths to your specific business needs, customer demographics, and growth trajectory. As India’s digital payments market continues its upward trajectory, partnering with the right payment gateway becomes not just an operational decision but a strategic advantage in capturing the massive opportunity ahead.
