Exploring Payment Gateway Options for Ecommerce in India

Payment Gateways help eCommerce businesses in India handle and manage online payments swiftly and conveniently.

It is the final step in every online shopping process, without which eCommerce companies could not charge customers who purchase products from their eCommerce website.

What's the point of building a full-fledged website and displaying products and logistical solutions if you don't have a dedicated payment gateway?

If you are developing an eCommerce website in India, having the appropriate payment gateway is as important as selecting the right platform to host your store. Most of the time, we spend funds on website development and developer fees for coding our eCommerce website.

We have a complete guide on building and launching your online store from scratch; read here (1).

However, to do so, we occasionally cut down on payment gateway solutions, go for the cheaper ones without checking appropriate features, and later face multiple issues related to payment on both ends.

Always keep in mind that your payment gateway, together with your website interface, determines the majority of your business's credibility performance.

Why not leverage eCommerce web hosting tools at such times for those looking to code a website and paying a fortune to developers? This will help you to save significantly and invest wisely.

We have a complete guide on the top five eCommerce web hosting platforms; read here (2).

These tools are simple to use, convenient and accessible, hassle-free, and, more importantly, 10 times less expensive than hiring a developer, leaving room for you to invest wisely and accurately in a suitable payment gateway for your eCommerce website.

Numerous eCommerce website hosting tools are available in India, but none are tailored specifically to the Indian eCommerce market.

This will no longer be the case once an India-specific eCommerce website hosting platform is on the scene, with its platform assisting Indians to start selling online.

Becho.io, an India-specific eCommerce marketplace, will soon be launching to provide an online home for every Indian entrepreneurial mind by providing a platform to host their eCommerce website and start selling online in India.

The Hustle Company has already leveraged Becho.io's services, saving a considerable amount of money on website development, and is spared to invest wisely in payment gateway solutions and other operations (3).

Now that you've discovered Becho.io and are ready to start selling online in India, understanding more about various payment gateway for eCommerce in India will assist you in selecting the perfect source for processing your payments as a cherry on top of your new eCommerce website in India.

Let’s explore!

What is a Payment Gateway?

A payment gateway is a third-party avenue that effectively transmits funds from the customer's bank account to the merchant's payment portal by authenticating and confirming the customer's bank account legibility and completing the transaction.

In simpler terms, once a consumer places an order, the payment gateway analyzes the customer's account or card information, determines whether they have sufficient funds to conduct the transaction, and then completes the transaction.

Payment Gateway & Payment Processor

Before completing a transaction, the Payment Gateway analyzes and confirms a customer's bank information. After confirmation, it transmits it to the payment processor, which routes the information between the customer and the merchant's payment gateway and completes the transaction.

Types of Payment Gateways for eCommerce in India

Owing to technological advancements, many businesses have shifted away from traditional bank transfers and toward a more convenient, secure, and reliable method of receiving payments via a payment gateway online.

A payment gateway for eCommerce in India is a key component of the payment processing system. It is referred to as a front-end mechanism since it collects, transports, and authorizes customers' information in real-time to a merchant's bank and conducts the transaction.

Types of Payment Gateway for eCommerce in India

API-Hosted Payment Gateways for eCommerce in India

A customer enters their bank or transaction credentials on the merchant's website. Still, instead of being directed to the URL page, payments are made using HTTPS queries for APIs in an API-hosted payment gateway for eCommerce in India.

With this paradigm, merchants have complete authority over the whole transaction process, but to do so, one must have SSL certification and DSS compliance.

Hosted Payment Gateway for eCommerce in India

In hosted payment gateway for eCommerce in India, once the customer clicks the "checkout" button on the merchant's website, the system leads them to the payment service provider's website, where they must enter the transaction data.

Once the data the customer inputs transaction data and the process is complete, the customer is returned to the merchant's website and receives an order confirmation notification.

Most businesses place their logo on the payment page to ensure the customer feels secure and is not confused if the transaction occurs on the incorrect page. This also helps the merchant preserve their credibility.

Self-Hosted Payment Gateway for eCommerce in India

In a self-hosted payment gateway for eCommerce in India, the user enters the transaction details directly on the merchant's website, which are subsequently encoded and transmitted to a third-party payment gateway for approval.

Once approved, the transaction gets processed on the same page, creating a personalized customer experience.

Now that we've covered the fundamental types of Payment Gateway for eCommerce in India let's get down to business and look at the different payment gateway options in India.

23 Best Payment Gateway Options for Ecommerce in India 2023

CashFree

CashFree is a leading payment gateway for eCommerce in India, having started in 2015 and now serving over 15k enterprises. It accepts net banking, UPI, and credit/debit cards. It offers many eCommerce CMS systems, integrations, and affordable usage costs, adding to its popularity and growing reputation.

Features of CashFree

• There are no setup fees for integrating CashFree.
• It comes with inbuilt invoice generation, recurring billing, and payment collection.
• It is simple to set up and has a high level of security.
• It approves the transaction only after conducting a thorough fraud check.
• It has a minimal transaction cost and provides an immediate return.

Razor Pay

Razor Pay, a unicorn startup in India with a valuation of more than a billion dollars, is a leading payment gateway for eCommerce in India. The company has provided digital payment solutions to over 80,000 businesses, allowing them to perform automated payments easily.

It offers a low-code integration that allows for swift adoption by SMEs and requires little technical help, making it simple to adopt for Indians. You also get detailed business-driven analytical assistance via reports and insights in its dedicated platform.

Features of Razor Pay

• It contains API-driven automation that requires no manual intervention and is simple to integrate.
• It features over 100+ payment options and a dashboard for viewing real-time data.
• It also facilitates payment integration with the website.
• It accepts invoice payments and provides 24/7 customer service.

CCAvenue

CCAvenue is a leading payment gateway for eCommerce in India. It is a merchant-centric portal that helps native Indian SME companies with financial assistance. It provides users free access to premium digital transaction services making it a suitable option for most businesses.

It also gives them access to enterprise-grade PCI DSS-certified protection and smart, dynamic routing, improving and enhancing payment solutions for clients and customers.

Features of CCAvenue

• It accepts over 200 payment methods, including credit cards, net banking, debit cards, ATM cards, bank EMI, and prepaid instruments.
• It supports about 18 primary Indian and international languages, offering a tailored experience for users nationwide.
• It accepts 27 major international currencies in addition to INR.
• It includes free setup and has no upfront costs.
• It also allows mobile integration on Android, iOS, and Windows.

PayU

PayU is a leading payment gateway for eCommerce in India, which is a high-flexibility platform that helps solidify digital payments with its native OTP and one-click payment for recurring transactions, as well as a handy roll-up of all customer interactions on the eCommerce website.

Features of PayU

• It supports debit/credit cards from all card associations and enables online banking, UPI payment mechanism, and digital wallets as payment choices.
• It is protected by 128-bit SSL encryption, allowing for two-factor authentication and simple account activation.
• There is no initial setup price and no need to pay for annual maintenance.
• It is app-ready and works with mobile SDKs for Android and iOS.

EaseBuzz

EaseBuzz is a leading payment gateway for eCommerce in India, with an extensive cloud-based dashboard and in-built analytic and software applications for API customization. It is rapidly expanding, with over 10,000 merchants using its KYC-free services.

Features of EaseBuzz

• It has no setup fees and requires no documentation.
• It has several bank connections and provides payment statistics, invoices, and multiple payment processing choices.
• It offers flat transaction fees as well as safe transaction data management.
• It performs fraud detection before advancing a transaction and includes sophisticated security solutions.
• It also provides transaction alerts and allows for invoice payments.

PayGlocal

PayGlocal is a leading payment gateway for eCommerce in India, with a global reputation and top-tier security over online transactions. The platform provides quick, safe, and global payment processing, making it an excellent solution for your eCommerce website in India.

It simplifies the process of accepting payments from customers worldwide and nationwide. It aids in the exponential growth of the business by providing a platform for merchants to view transaction information and get reports to analyze business operations.

It also allows international currency settlement and provides a chargeback guarantee, allowing eCommerce store owners to focus on their business while effortlessly protecting their clients from fraudulent activity.

Features of PayGlocal

• It accepts different currencies and provides a smooth checkout experience.
• It is secure and performs fraud detection on every transaction.

Bill Desk

Bill Desk, a leading payment gateway for eCommerce in India, was founded in 2000, delivering financial services and specializing in managing recurring payments. It is an Indian unicorn with a billion-dollar value specializing in FinTech.

Features of Bill Desk

• It is a protected payment gateway that ensures transaction security.
• There are no setup fees.
• It enables users to pay bills such as energy, credit cards, and Internet service providers (ISPs) using their existing bank accounts.
• It accepts recurring payments.

OPEN

OPEN, a leading payment gateway for eCommerce in India, was founded in 2017 and already had over 3 million clients managing their funds through this platform. It is India's 100th unicorn, joining the club in 2022 after reaching a billion-dollar valuation.

It specializes in business bank transactions that are simple to activate and integrate. It features cutting-edge company financing capabilities and a unified dashboard for viewing real-time transactions.

It is optimized and liked by many small and large enterprises, and even freelancers prefer it for its user-friendliness and security. It enables you to take payments via over 200 different methods, including credit/debit cards, net banking, UPI, digital wallets, FreeCharge, etc.

It allows you to effortlessly manage your marketplace, automate bank transfers, collect recurring payments, share invoices, current accounts, accounting, virtual accounts, UPI autopay, bulk payouts, cash management, etc.

Features of OPEN

• It includes 200+ payment methods, simple integration, and 24/7 customer support.
• Its API-driven automation requires no manual intervention.
• It offers a dedicated dashboard for viewing real-time data.
• It allows for payment integration with the website as well as invoicing payments.

MobiKwik

MobiKwik, a leading payment gateway for eCommerce in India, is famous for its encrypted mobile wallet and "Buy Now Pay Later" mechanism. It combines the convenience of regular mobile payments with the benefit of BNPL to meet the unmet credit demands of the fast-growing digital payment user base.

Features of MobiKwik

• It offers specialized accounting software integration with reporting via the dashboard.
• It accepts numerous credit and debit cards.
• It also incorporates ACH payments and eCheck processing, making it versatile.

Instamojo

Setting up this platform only takes about two minutes; Instamojo is a leading payment gateway for eCommerce in India. It powers over 2,20,000 small enterprises in India and is also known as a multi-payment gateway in India.

Features of Instamojo

• It only accepts Indian rupees (INR) and does not accept multi-currency, international payments, or credit cards.
• It has no withdrawal fees and takes three days to settle in the linked bank account.
• Its operations are closed on weekends and only available during the week.
• After you sign up with them, it displays a lengthy documentation list, and you can later begin getting cash by signing in with your email.
• It accepts payments via social media, SMS, and other venues.
• It supports all major eCommerce platforms, and specific payment software for Android phones collects and tracks payments on demand.

IppoPay

IppoPay is a leading payment gateway for eCommerce in India. It only requires a few steps to incorporate and get your business onboard to start receiving payments and smoothening the operation of your online store in India.

Features of IppoPay

• It charges 1.9% for credit, debit, e-wallets, and net banking transactions and 3.5% for international cards.
• It supports over 150 currencies, including INR, USD, GBP, etc.
• It has approval and onboarding within 24 hours.

EBS

EBS is a leading payment gateway for eCommerce in India, the service is similar to that of CCAvenue, but it is the most secure online service provider internationally. Being the first Indian payment provider to achieve PCI DSS 3.9 compliance.

It is equally trustworthy and offers lower-cost plans than other payment gateway services, and those who cannot afford EBS's standard plan can choose one of its custom plans.

Features of EBS

• It is certified for security and process adherence and audited following the ISO 27001-2013 standard.
• It provides over 100 payment alternatives, including credit cards, net banking, debit cards, prepaid instruments, bank EMI, and ATM cards.
• It is a highly secure portal that requires no upfront setup fees.
• It accepts eleven major international currencies and is available in seven distinct Indian languages in addition to English for a more personalized experience.
• It is simple to integrate, and those who need a mobile app integration can contact the organization.
• It takes 24 hours to activate accounts and provides a good user interface with multiple payment processing choices.

JusPay

JUSPAY is a leading payment gateway for eCommerce in India, with 10 billion INR transactions conducted daily and 120 million mobile phone SDK installations, as well as 4 million volume of transactions every day.

It has payment gateway solutions that are versatile and modular, with domain-specific linguistics and function-reactive programming for configuration and robust abstraction. It is completely customizable, convenient, secure, and reasonably priced.

Features of JUSPAY

• It provides a secure environment for mobile and desktop checkout tiers with automated two-factor authentication.
• It allows for real-time payment operations to provide a more tailored user experience.

Paytm

Now a household name in digital payments Paytm is India's leading payment gateway for eCommerce. It is a mainstream consumer app with a strong payment gateway for businesses regardless of size.

It is based on the same technology that powers some of India's most well-known companies, including the Paytm App. It accepts major payment methods like domestic and foreign credit cards, UPI, Paytm Wallet, Net banking, and Paytm PostPaid.

It is developed so that consumers of all types can easily grasp how to make payments in India. It is also the only payment gateway in India that accepts UPI payments for a 0% transaction cost and has a T+1 settlement schedule.

Features of Paytm

• It supports 100+ payment sources and has immediate activation and easy integration.
• It has the highest success rate in the sector, mostly among local merchants.
• It is currently India's most popular gateway mechanism.

DirecPay

DirecPay, a Times Group venture, is India's leading payment gateway for eCommerce. It is well-known for its quick and dependable services, and it offers a variety of plans based on the amount of money one is ready to pay for the setup and the type of online store one wants to establish.

Features of DirecPay

• It accepts international payments and credit cards, with a refundable security deposit of INR 30000.
• It does not levy any fees for withdrawal.
• It supports multi-currency and USD payments for merchants with international payment gateway needs.
• It takes days and days for transactions to settle and 5 to 7 days to initiate the transaction.
• It does not provide customer assistance on weekends and only allows easy communication with the team during the week.
• It is necessary to have business registration paperwork to operate and open a new merchant account.
• It supports Android and iOS mobile app integration and eCommerce CSM systems.

PayPal

PayPal is a well-known platform for merchants who deal with foreign customers; it is a leading payment gateway for eCommerce in India. It is unsuitable for domestic merchants or local Indian clients because it does not deal in INR.

Therefore utilizing PayPal in India requires additional currency conversion fees and taxes per transaction.

Features of PayPal

• It supports various payment options, including MasterCard, American Express, JCB, Diners Club, and VISA.
• It also supports multiple currencies. But it does not accept Indian rupees; it only accepts overseas payments in US dollars or any other supported currency.
• There is no initial setup price, and no annual maintenance fee is necessary.
• It provides PCI-DSS-compliant payment systems that are secured and secure.
• It provides simple web and mobile app connectivity, and users can use PayPal in India to receive payments from foreign consumers.

IndiaPay

IndiaPay is a leading payment gateway for eCommerce in India, offering a comprehensive end-to-end modular solution with crucial features such as instant paper check truncation and straight-through execution from the merchant account's countertop.

Features of IndiaPay

• It incorporates various payment solutions for international clients.
• It provides a full API and fraud and risk management services.
• Most credit/debit and cash cards, including American Express, Diners Club, VISA, MasterCard, and JCB, are accepted.
• It has an SSL setup, which protects consumers' complete online purchase security.
• It provides personal attention to its customers while maintaining the immediacy essential for online success.
• Its check truncation program aids in creating a full payment collection by check process that is rapid, efficient, and free of fraud.
• It provides first-rate client service.

PayKun

PayKun is a leading payment gateway for eCommerce in India, catering to companies, SMEs, eCommerce brands in India, and many other sectors. It is a mobile-friendly website that accepts QR codes and other standard payment methods.

It provides merchants with single-click refunds, payment failure downtime alternatives, and subscription payment ways. It is a dependable source for running payment solutions for most eCommerce websites in India.

Features of PayKun

• It accepts subscription payments, Debit/Credit Cards, Diners Club, UPI/BHM, UPI wallet payments, online banking, and e-wallets.
• It solely accepts domestic currency and transactions and has one hour's approval and onboarding time.

Transecute

This platform has grown in popularity due to its features and services appropriate for small and large businesses; Transecute is a leading payment gateway for eCommerce in India.

Features of Transecute

• It does not charge any fees for registration or withdrawal.
• It charges 5% for each transaction and accepts MasterCard and VISA cards.
• It takes about seven days for the application to be processed, following which one can withdraw weekly, and, in the event of a reversed transaction, the commission charged is refunded.
• It has a fraud detection and risk mitigation tool that reduces losses caused by online fraud.
• It provides physical and data center protection, firewall, and intrusion sensing devices at the application and operating system layer, OS and application, database, and transaction security.
• Its merchant interface lets you easily modify the security, marketing, and fraud detection parameters and configurations.

PayG

PayG is a leading payment gateway for eCommerce in India. It is a completely customizable omnichannel payment solution provider that assists businesses in developing by conveniently and securely collecting payments from clients via any device in any mode.

Features of PayG

• It offers a personalized merchant dashboard to improve your data collection and usage experience.
• It accepts invoice payments and supports UPI autopay and QR-based payments.

ePaisa

ePaisa is a leading payment gateway for eCommerce in India. Its dedicated omnichannel point of sale environment, OmniPayment acceptance for businesses of all sizes, and capabilities such as Inventory, Loyalty, Marketing, Analytics, VAS, etc.

Features of ePaisa

• It enables cloud computing, accurate customer management, and email and SMS marketing.
• It provides specialized inventory management as well as payment processing and warehouse management.
• It has capabilities for tracking sales as well as table and stock management.
• It supports barcode scanning, invoices, and a variety of payment methods.
• It includes Credit Card Payment Processing as well as specialized user management in a variety of languages.
• It includes loyalty management, precise transaction processing with cash management, simple returns and refunds, and store credits.
• It supports eCommerce, provides gift vouchers with tax management, and has a dedicated dashboard for billing, promotions, and gift card management.
• It includes eCommerce management with 24/7 assistance, loyalty program support, and reporting.
• It has dedicated order automation, pricing management, and restaurant POS.
• It also helps with returns tracking and core retail management.

AirPay

AirPay is a leading payment gateway for eCommerce in India, offering specialized online payment management solutions, eCommerce payment solutions, and credit card payment options with no hidden charges or setup fees.

Features of AirPay

• It supports invoices and includes dedicated payment analytics.
• It includes merchant account support and simplifies integration.
• It has a variety of payment alternatives.

Stripe

Stripe is India's leading payment gateway for eCommerce, offering the most powerful and versatile solutions for running your online business.

Its APIs are designed to assist you in building the best product for your users while creating a subscription model and an on-demand marketplace for your eCommerce store.

Features of Stripe

• It supports invoices and provides specialized payment handling.
• It also provides regular bills, taxation administration, and online payments.
• It accepts many currencies and offers a variety of payment methods.
• Together with recurring billing services, it also supports invoice payments and third-party connectivity.
• It has a dedicated ACH check transaction service that accepts Debit Cards.
• POS transactions and receipt printing are also supported.
• It provides specialized discount management.

Now that you know everything about payment gateway for eCommerce in India. It's time to start your eCommerce website in India, start your online journey, and start selling online.