Best 3 Payment Gateways in India for Secure Transactions

Best 3 Payment Gateways in India for Secure Transactions

Whether you run an online marketplace, a brick-and-mortar store, or both, your top priority is pleasing customers and making sales. Without a seamless checkout experience, you’ll likely push customers away or, at the very least, slow business down.

We’ll go through what a payment gateway is, how it serves your business, what to look for when choosing a solution, and five of the best payment gateways for secure transactions.

Overview: What is a payment gateway?

Payment gateways allow businesses to collect online payments. They securely transfer money from your customers’ accounts to your payment portal. Your payment gateway ensures secure transactions by encrypting data, such as card and bank details, that your customers have provided.

Payment gateways are also used in physical stores in conjunction with point-of-sale (POS) systems, POS terminals, and other POS hardware.

Payment gateway vs. payment processor: What’s the difference?

Payment gateways and payment processors are both necessary for online transactions. While payment processors execute payment transactions, payment gateways approve or decline transactions made between your online business and your customers.

In short, payment gateways are virtual POS software solutions for your e-commerce store, while payment processors act as an intermediary between your payment gateway and the merchant bank.

What to consider before choosing a payment gateway

Before you decide on your secure payment gateway of choice, you need to consider some key components. While it’s all too easy to choose the cheapest option available, this can lead to selecting a tool that’s not the right fit for your business.

Associated costs

There are multiple costs to bear in mind when selecting a payment gateway:

  1. Payment gateway setup fees
  2. Monthly gateway fees
  3. Gateway processing charges
  4. PCI compliance fees
    Not all payment gateway providers charge for all of the above fees. For example, some merchant account providers include the setup fees if you get your gateway through them. Take into account the size of your business and customer base before choosing your payment gateway.

User experience

There’s nothing more off-putting to customers than a frustrating checkout experience. The right payment gateway will provide a good experience as well as secure payment options, meaning your customers are more likely to make repeat purchases.

Always ask vendors for a demo or walkthrough of how their payment gateway works before you make a definitive choice.

Customer support

Look closely at each payment gateway’s customer support options. Are there multiple customer service routes available (phone, email, support ticket, knowledge base)? Is customer phone support offered on a 24/7 basis? Consider your business model and customers and work out exactly what kind of customer service options you require.

Payment gateway setups

The payment gateway you choose will largely depend on whether you’ve already selected a merchant account and, if so, the options that are compatible with it.

Generally, there are three payment gateway setup options:

  1. Selecting a merchant account provider that offers its own proprietary payment gateway
  2. Using a payment service provider that comes with a built-in payment gateway
  3. Choosing a merchant account provider that doesn’t come with a payment gateway and choosing a standalone gateway

Best 3 payment gateways in India for secure transactions

While most payment gateways offer similar core features, they offer different pricing structures, contracts, and customer support options.

Let’s take a look at five of the best payment gateways we’ve identified.

1. Razorpay:

Razorpay is the only converged payments solution company in India that allows your business to accept, process, and disburse payments via its product suite. With Razorpay, you have access to all payment modes, including credit and debit cards, UPI, and popular mobile wallets.

Razorpay is the only payments solution in India that allows businesses to accept, process, and disburse payments with its product suite. It gives you access to all payment modes including credit card, debit card, net banking, UPI, and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp.

Click here to visit Razorpay and Join for Free!

Razorpay’s business banking arm, RazorpayX, brings effectiveness, efficiency, and excellence to all financial processes. With RazorpayX, businesses can get access to fully-functional current accounts, supercharge their payouts, and automate payroll compliance.
Manage your marketplace, automate bank transfers, collect recurring payments, share invoices with customers, and avail working capital loans - all from a single platform. Fast forward your business with Razorpay.

2. PayU:

PayU is a fintech company that provides payment technology to online merchants. It allows online businesses to accept and process payments through payment methods that can be integrated with web and mobile applications.

With PayU, you can accept online payments from across all channels and devices, through a single processing platform. You can collect payments on any website, mobile app, tablet or using any social app. While there are many channels of payment acceptance, all your transactions reconcile in one easy-to-use location — the PayU payment gateway.

Also, you can share PayU payment link (earlier known as PayUmoney payment links) with your customers and collect payments via WhatsApp, Facebook, Email, or SMS.

Click here to visit PayU and Join for Free!


1. Payouts- Disburse immediate bulk payments to anyone, anytime using NEFT, IMPS or UPI.

2. Subscriptions- Create, collect, and manage recurring payments from your customers, effortlessly.

3. International Payments Acceptance Accept payments in 100+ foreign currencies.

4. Payment Links Accept payments by sharing PayU Payment Links (earlier known as PayUmoney Payment Links) via msg, email, Whatsapp

5. Payment Buttons You can add a Payments Button (earlier known as PayUmoney Button) on your Website or Blog and start collecting payments in no time!

6. Excel Plugins Collect payments easily by sending payment links via PayU Excel Plugin (earlier known as PayUmoney Excel Plugin). You can send multiple links in one go. Integrate Excel Plugin your own business excel sheet or create a new one.

3. Instamojo:

Instamojo is India’s largest on-demand payments and eCommerce platform that empowers over 1,200,000 micro-entrepreneurs, startups, MSMEs, to start, manage, and grow their business online across mobile and web, with just a bank account and phone number, in a few minutes.

Instamojo is built for SMEs. With extensive payment mode coverage, easy API integrations, and operability over multiple channels, it can’t get better than this. All of this, while outperforming security and performance benchmarks.

Click here to visit Instamojo and Join for Free!

There are a lot of payment gateway options available to businesses these days, which makes it all the more important to do your research before diving into the deep end. Consider your business model, whether you only sell online or also in a physical store, and whether the gateway can support all of the operations you need it to.

Product demos are a business’s best friend, and it’s even better if you can access a sandbox account to experience the product for yourself before putting your money on the table.