10 Best Payment Gateways for eCommerce in India (2025)
Discover the top 10 payment gateways for eCommerce in India in 2025. Explore secure, reliable, and user-friendly options to streamline your online transactions. If you’re considering Shopify website development or ecommerce website design, understanding payment gateway options is crucial.
Running an e-commerce business comes with unique challenges, especially in managing payment gateways. A study by Baymard reveals that 25% of shoppers abandon their carts due to concerns about sharing credit card information, while 13% leave because their preferred payment method isn’t available. These issues highlight the importance of selecting a secure and versatile payment gateway for your ecommerce website development to build trust and ensure customer satisfaction.
In this article, you will explore the 15 top payment gateways for your ecommerce website, outlining their transaction fees, benefits, and drawbacks. With this information, you can make an informed decision that enhances the shopping experience and boosts conversion rates.
Table of Contents
- What is an eCommerce Payment Gateway?
- How Does a Payment Gateway Work?
- Key Considerations for Choosing an eCommerce Payment Gateway
- Best Payment Gateway Options for E-Commerce in India
- What Is the Best Payment Gateway for Shopify?
- Conclusion
What is an eCommerce Payment Gateway?
An eCommerce payment gateway is a digital service that enables businesses to accept online payments securely. It facilitates transactions by encrypting and verifying payment details, ensuring funds are transferred safely from the customer’s account to the merchant’s account. If you’re considering building an ecommerce website development or a Shopify website development, choosing the right payment gateway is crucial.
How Does a Payment Gateway Work?
- Order Placement: Customers complete their checkout process on the website, selecting their preferred payment method.
- Data Transfer: The merchant sends the transaction details to the payment gateway for processing.Authentication: The payment gateway forwards the transaction to the issuing bank for verification.
- Authorization: Once authenticated, the bank approves or declines the transaction.
- Settlement: The bank processes the payment, transferring funds to the gateway, which then deposits them into the merchant’s account.
Key Considerations for Choosing an eCommerce Payment Gateway
1. Security Standards
Prioritize gateways that adhere to stringent security protocols like PCI DSS compliance, ensuring customer data remains protected.
2. Cost Structure
Understand the fees involved, such as setup, monthly, and transaction charges. Some gateways offer free setup or competitive pricing, which can help manage expenses.
3. Recurring Billing
If your business operates on subscriptions, choose a gateway that supports automated recurring payments to streamline billing and improve user experience.
4. Multi-Currency Support
Opt for a gateway capable of handling multiple currencies to cater to international customers, expanding your business reach.
5. Hosted vs. Non-Hosted Platforms
Decide between hosted gateways, which redirect users to a third-party payment page, or non-hosted options, which keep transactions on your site for a seamless experience.
6. System Integration
Ensure the payment gateway integrates smoothly with your existing website, apps, or third-party tools to prevent disruptions during checkout.
7. Payment Settlement Time
Evaluate the gateway’s payout timelines, as faster settlements can improve cash flow management. Some gateways settle funds within a day, while others may take longer.
8. Mobile Compatibility
Select a gateway optimized for mobile transactions to enhance customer convenience and increase conversions, as mobile shopping continues to grow.
| Payment Gateway | Why It’s Ideal for E-Commerce |
|---|---|
| PayPal | Extensive global presence, customer trust, easy integration, secure transactions. |
| Stripe | Ideal for developers, flexible API, supports subscription-based payments. |
| Amazon Pay | Leverages Amazon’s vast customer base, quick and secure checkout, recognized brand. |
| RazorPay | User-friendly integration, supports diverse payment methods, tailored for the Indian market. |
| Apple Pay | Smooth mobile payments, high level of trust and security, efficient processing. |
| InstaMojo | Quick setup, low transaction fees, perfect for small and medium businesses. |
| Cashfree Payments | Fast settlement, supports numerous payment options, optimized for Indian businesses. |
| PayU | Handles international transactions, strong fraud detection measures. |
| Paytm Business | High market penetration in India, easy integration with mobile apps, reputable and trusted. |
| CCAvenue | Supports multiple currencies, offers extensive payment solutions, reliable customer service. |
Best Payment Gateway Options for E-Commerce in India
1. PayPal
Transaction Pricing: PayPal charges ₹3 per transaction for domestic payments and 4.40% for international payments.
Ideal For: Businesses of all sizes seeking a global payment solution with advanced security features, seamless integration, and flexible payment options. PayPal is especially useful for reducing cart abandonment due to its trusted reputation and diverse payment capabilities.
Key Features:
- Transparent pricing structure: No setup or monthly fees, only transaction-based charges.
- Streamlined checkout experience with a single integration to accept various payment methods.
- Easy invoice generation: Send professional invoices that align with customers’ preferred payment methods.
- Enhanced security: Protects businesses with real-time transaction monitoring to prevent fraud.
Advantages:
- Integration-friendly: Compatible with major eCommerce platforms and adapts to dynamic business needs.
- Improved customer trust: Its buyer protection features safeguard shopper information.
- Cost-effective shopping: No additional fees for purchases unless a currency conversion is involved.
- Custom branding: Businesses can personalize invoices by adding their brand logo.
Disadvantages:
- Account limitations: Accounts may be frozen without prior notice if suspicious activity is detected.
- Expensive currency conversions: Higher fees for transactions involving foreign exchange.
Why Choose PayPal?
PayPal stands out with its global reach, simple integration, and customer-centric features, making it an excellent choice for businesses looking to boost conversions while maintaining secure transactions.
2. Stripe
Transaction Fees: 2% for cards issued in India
Ideal For: E-commerce owners seeking a reliable payment solution with strong fraud protection, customizable checkout options, and powerful API integrations.
Stripe is a versatile payment platform designed to help businesses process both online and in-person payments worldwide. Utilizing machine learning technology, it enhances fraud prevention and boosts conversion rates. Its pre-built payment forms simplify the checkout experience for customers, improving satisfaction and efficiency.
For businesses offering subscription services, Stripe Billing makes managing recurring payments, invoicing, and subscription plans easy.
It integrates smoothly with leading e-commerce platforms, ensuring a seamless setup.
Stripe Radar, powered by machine learning, helps reduce fraud by 32% by analyzing each transaction for potential risks.
Advantages:
- Includes a comprehensive set of features such as optimized checkout, fraud prevention, and one-click payments.
- Offers various integration methods for a fully personalized experience, helping businesses increase sales.
- Trusted by major brands like Wayfair and ASOS to scale their revenue.
- Prevents payment failures by ensuring successful transactions across global issuers, sending retry messages, and using effective routing strategies.
Disadvantages:
- Some users report slow customer support response times.
- More suited to developers, as non-technical users might struggle to manage setups and configurations without technical support.
- Can be pricier compared to other payment gateways.
3. Amazon Pay
Transaction Fees: Domestic transactions are subject to a processing fee of 2.9% plus a fixed charge of $0.29 per transaction.
Ideal For: Amazon Pay is an excellent choice for businesses seeking a reliable, secure payment platform. It allows customers to easily use their existing Amazon accounts for fast and safe transactions, improving both conversion rates and overall satisfaction. Incorporating Amazon Pay into your checkout process can help reduce cart abandonment by streamlining the purchasing experience.
Customers benefit from the convenience of checking out using the shipping and payment details already saved in their Amazon account. This feature reduces friction in the buying process, making it more likely that customers will complete their purchases.
Key Features:
- Fast Payment Clearance: Transactions typically clear within 1 to 2 business days, providing swift access to funds.
- Flexible Financing Options: Amazon Pay offers financing features like “buy now, pay later” and payment installment plans, giving customers more flexibility when making purchases.
- Security and Trust: The system is built with strong security measures and offers Amazon’s A-to-Z Guarantee, which helps reduce cart abandonment and builds trust with shoppers.
- Simple Integration: Amazon Pay’s integration with your website ensures a seamless checkout experience, leveraging the information in Amazon accounts.
Advantages:
- A-to-Z Guarantee: This feature enhances customer confidence by ensuring timely delivery and the possibility of refunds from third-party vendors.
- Security Focused: Only essential information, such as customer name, email, and shipping address, is shared with merchants, maintaining customer privacy.
- Speedy Transaction Processing: Fast payment clearance within 1-2 business days is a major plus for businesses looking for quick access to funds.
Disadvantages:
- Amazon Account Requirement: Customers must have an Amazon account to complete transactions, which could limit some users.
- Strict Account Policies: Violating Amazon’s terms can result in account cancellations and penalties, which may affect your business operations.
- Limited Payment Options: Amazon Pay does not support PayPal transactions, and feedback from store owners regarding its functionality is sometimes mixed.
Why Choose Amazon Pay?
Amazon Pay stands out for its ability to provide a fast, secure, and user-friendly checkout experience. With the added benefits of financing options and robust security features, it’s a great option for businesses aiming to reduce cart abandonment and increase customer trust.
4. Razorpay
Transaction Fees: 2% per transaction & 3% for international card payments.
Ideal For: Razorpay is an all-in-one financial platform that is highly beneficial for businesses looking for seamless payment processing. It supports multiple payment methods, such as credit/debit cards, UPI, wallets, and more, and offers a user-friendly interface. This makes it an excellent choice for both small businesses and large enterprises.
Razorpay provides simple and quick integration, a smooth onboarding process, and a feature-packed checkout experience. It supports a wide range of payment options, including domestic and international credit/debit cards, EMIs (both card-based and cardless), PayLater, net banking from 58 banks, UPI, and 8 different mobile wallets.
Razorpay is PCI DSS Level 1 compliant, meaning it meets the highest security standards. It also undergoes regular third-party audits and has a dedicated internal security team to protect user data.
Users have easy access to real-time data and detailed insights, making it simple to generate customizable settlement reports. Additionally, the platform allows you to run bank-specific promotional campaigns directly from its dashboard.
Advantages:
- Wide range of payment methods, including domestic and international debit/credit cards, net banking from 50+ banks, and various mobile wallets.
- User-friendly dashboard with detailed statistics on payments, refunds, and pending settlements, empowering better decision-making.
Disadvantages:
- No free trial available.
- Lacks customer-friendly features such as gift cards or coupons.
- Does not fully rely on SSL encryption, potentially compromising security.
5. Apple Pay
Transaction Fees:
Apple Pay charges a transaction fee of 1.5% + $0.25 to $15, depending on the transaction amount.
Best For:
Apple Pay offers customers a fast, secure, and seamless checkout experience, particularly for those using Apple devices. It simplifies payments by eliminating the need for cards or cash, offering enhanced security features such as biometric authentication (Face ID, Touch ID) and tokenization, which protect personal data and minimize fraud risks.
It integrates easily with apps and websites on iOS, supporting a variety of payment methods and boosting conversion rates.
Apple Pay is ideal for businesses targeting mobile and Apple users, providing a reliable and convenient payment solution that fosters customer satisfaction and loyalty.
Advantages:
- Top-notch Security: Transactions are protected with advanced security features.
- Transaction Tracking: Apple Pay allows customers to track their purchase history via the Wallet app.
- Easy Identification: Instead of entering debit card PINs, Apple Pay uses quick and secure biometric identification methods, such as face and fingerprint recognition.
- Convenient: No need to carry a physical card – payments can be made from the device.
- Rewards: Enjoy cashback on purchases made with an Apple Card.
Disadvantages:
- Occasional Security Issues: There may be security concerns under certain conditions.
- Device Dependency: The payment process is dependent on the iPhone being charged and functioning properly.
- Limited Acceptance: Not all merchants accept Apple Pay.
- Device Restrictions: It is only available for iPhone 6 or newer models.
6. InstaMojo Payment Gateway
Transaction Fees: InstaMojo charges 2% + ₹3 + GST for physical products and 5% + ₹3 + GST for digital goods.
Best Suited For: Ideal for startups and small businesses, primarily in India, InstaMojo offers a budget-friendly and reliable payment solution that simplifies online transactions, making it perfect for businesses focused on growth and efficiency.
Key Features:
Diverse Payment Options: InstaMojo supports over 100 payment methods, including Google Pay, Netbanking, debit and credit cards, EMI options, and even pay-later schemes.
- Fast Payouts: Payments are processed and paid out within 3 business days.
- No Monthly Fees: InstaMojo offers easy setup with no monthly charges, making it a perfect choice for new businesses and startups.
- Business-Friendly Tools: Includes features like automated invoicing, subscription billing, payment links, and detailed sales analytics for tracking business performance.
- Easy Integration: Enables new merchants to quickly set up a merchant account for accepting payments online, regardless of whether they have a website.
Advantages:
Wide CMS Compatibility: Supports all major eCommerce platforms such as Magento, Prestashop, Opencart, and more.
- No Annual Maintenance Fees: There are no hidden annual fees, reducing business costs.
- Flexible Integrations: Works seamlessly with platforms like WooCommerce, WordPress, iOS, Android, and Magento, among others.
Disadvantages:
- Limited Mobile App Integration: The payment gateway isn’t available for mobile app integrations.
- Weekend Support Unavailability: Customer service is not available over the weekends.
- No Multi-Currency Support: Does not support transactions in multiple currencies.
- Lack of International Payment Support: Credit card payments from international customers are not supported.
Why Choose InstaMojo?
InstaMojo provides a hassle-free, secure, and flexible payment gateway, making it an ideal choice for small and growing businesses in India. It combines cost-effective solutions with user-friendly tools that can streamline your business operations and drive growth.
7. Cashfree Payments
Transaction Fees:
For payments made via credit and debit cards (Visa, Mastercard, Maestro, RuPay) and over 65+ net banking options, Cashfree charges a flat rate of 1.95% + GST.
Best For:
Cashfree is ideal for e-commerce businesses, particularly those based in India, offering smooth integration with a variety of payment methods. It supports payments in Indian Rupees (INR) and more than 100 other foreign currencies, with minimal effort required for setup. This payment gateway ensures an efficient, conversion-optimized checkout experience.
Key Features:
Cashfree provides over 180 payment methods, including UPI, credit/debit cards, EMIs, Pay Later options, wallets, net banking, and more.
It ensures a seamless customer experience with the simplest integrations for both websites and mobile apps.
The gateway facilitates both domestic and international payment processing, allowing for quick settlements within minutes, 24/7, with guaranteed funds availability.
Advantages:
- Ready-made plugins for popular eCommerce platforms like Shopify, WooCommerce, Wix, Magento, OpenCart, and others.
Go live within 24 hours after signing up. - Access real-time analytics, including live transaction tracking, monthly reports, payment method breakdowns, and details of settled/unsettled transactions.
- A dedicated account manager is provided for personalized support.
Offers the lowest transaction discount rate (TDR) in India.
Disadvantages:
- Customer support may be inconsistent.
- Fraud detection systems can mistakenly flag legitimate transactions as suspicious.
- Payment confirmation delays may occur.
- The user interface (UI) and user experience (UX) are not as modern or streamlined as some competitors.
Why Choose Cashfree?
Cashfree Payments excels in providing a fast, efficient payment gateway that supports both domestic and global transactions. It offers a wide array of payment methods, ideal for businesses looking to expand their reach while ensuring smooth integration and quick settlements.
8. PayU
Transaction Fees: PayU charges 2% for domestic transactions and 3% for international transactions, along with an additional 18% GST on all payments.
Best For: PayU is ideal for businesses operating across diverse industries, particularly in emerging markets like India, Latin America, and Eastern Europe.
Key Features:
- Integration Ease: PayU offers seamless API and SDK integrations, with 100% online onboarding, enabling businesses to get started quickly.
- Comprehensive Payment Options: Supports an extensive range of payment methods such as Credit Cards, Debit Cards, Net Banking, UPI, Wallets, BNPL, and EMIs, providing flexibility for customers.
- Global Reach: Suitable for businesses targeting international markets with its multi-currency support.
- Security: PayU provides advanced fraud protection to safeguard transactions.
- Flexible Solutions: Offers features such as subscription billing, making it a great option for recurring payments.
Advantages:
- Multi-Currency Support: Ideal for businesses handling transactions in various currencies.
- Supports Domestic and International Cards: Compatible with major cards like Visa, Mastercard, Diners, and Amex.
- No Withdrawal Fees: PayU doesn’t charge fees for withdrawals, making it a cost-effective option.
Disadvantages:
- Customer Support Availability: Customer service can sometimes be hard to reach, with high wait times.
- Transaction Setup Time: It typically takes 5-7 days to initiate a transaction after account setup.
- Pricing: PayU’s fees tend to be higher compared to some other payment processors, making it a bit more expensive for some businesses.
Why Choose PayU?
PayU is an excellent choice for businesses looking to expand into emerging markets and those requiring a wide range of payment options. Its seamless integration, security features, and ability to handle multiple currencies make it a reliable option for businesses with a global or diverse customer base.
9. Paytm Business
Transaction Pricing: Paytm Business charges 1.99% for credit card transactions (Visa, Mastercard, RuPay) and 3.50% for international card payments.
Ideal For:
Paytm Business is well-suited for companies focused on the Indian market, offering advantages like quick refunds, multi-currency processing, robust security measures, and fraud prevention. This payment gateway is especially effective for Indian e-commerce businesses due to its widespread use, easy setup, and support for a variety of payment methods, including credit and debit cards, UPI, wallets, and net banking.
Paytm also offers additional features like invoicing, subscription billing, and SMS notifications, making it a versatile choice for both small and large e-commerce businesses seeking a reliable, cost-effective payment solution.
Key Features:
- Instant or same-day settlement options with a 1-2 day settlement timeframe.
- Full support for all major credit card types.
- Integration with a wide range of e-commerce CMS platforms.
- Available on both Android and iOS for mobile app integration.
- Supports 72 currencies for international transactions.
- Real-time transaction monitoring for enhanced fraud protection.
Advantages:
- Comprehensive support for all major credit cards.
- Rapid settlement times, with the option for immediate processing.
- Excellent customer support for troubleshooting and inquiries.
- Broad compatibility with major e-commerce CMS systems.
- Mobile app support for seamless transactions on both Android and iOS.
- Multi-currency support, catering to a global audience.
Disadvantages:
- Transaction initiation can take up to 2 days.
- No online access to the Paytm Payments Bank account.
- Security and privacy concerns may arise, as with all digital payment systems.
Why Choose Paytm Business?
Paytm Business is a solid choice for businesses looking for a well-rounded payment gateway that is easy to integrate, widely trusted in India, and capable of handling both domestic and international transactions. It provides a cost-effective solution with strong security and a range of additional features that enhance the e-commerce experience.
10. CCAvenue
Transaction Fees: 2% flat fee for Domestic transactions, 4.99% flat fee for International card payments.
Best For: CCAvenue is a great choice for businesses with a global customer base.
CCAvenue is a fully PCI-DSS-compliant payment solution provider, supporting nearly 3 million merchants in diverse industries. With its cutting-edge technology, CCAvenue focuses on transforming the user experience, increasing transaction success, and maximizing the earning potential for online merchants.
The platform supports a broad range of payment methods, including credit/debit cards, net banking, UPI, wallets, and EMI options, offering flexibility for customers with different preferences. CCAvenue is particularly known for its global reach, multi-currency capabilities, and robust fraud protection, making it an ideal choice for international businesses.
Advantages:
- Wallet support: Freecharge, Mobikwik, OlaMoney, Jiomoney, Paytm, PayZapp, Jana Cash, SBI Buddy, and others.
International payment support, including credit cards. - Over 200 payment options, including major credit cards like Amex, JCB, Diners Club, Mastercard, Visa, and eZeClick.
- Multi-currency support: Handles 27 major currencies, enabling businesses to cater to global markets.
Multilingual interface with 18 languages to serve both Indian and international customers.
Mobile app integration for payment gateway solutions on Android, iOS, and Windows.
Disadvantages:
- Annual maintenance fee for startup accounts: ₹1200.
- Payments are settled weekly for amounts over ₹1000, which is the minimum balance requirement.
- Customer support could be improved.
- Activation can take anywhere between 3 to 6 days.
What Is the Best Payment Gateway for Shopify?
Choosing the right payment gateway for your Shopify store is crucial for smooth transactions and a positive customer experience. The ideal option depends on your business needs, target audience, and preferred features. Here are some excellent payment gateways to consider:
- PayPal
- Stripe
- Easebuzz
- Cashfree
- Razorpay
Another option worth exploring is Shopify Payments, Shopify’s in-house payment solution. It offers:
- Elimination of third-party transaction fees
- Seamless on-site payment processing
- Real-time access to payout details within your Shopify dashboard
- Compatibility with major payment methods
Shopify Payments enhances the customer checkout journey and integrates effortlessly with features like Facebook and Instagram Checkout, making it an excellent choice for many merchants.
Conclusion
Selecting the right payment gateway is crucial for the success of any e-commerce website. The right choice can significantly impact your conversion rates, customer trust, and overall business efficiency. By understanding the unique features, transaction fees, security standards, and integrations of the top gateways available in India—such as PayPal, Stripe, Razorpay, and others—you can make an informed decision that best suits your business needs.
If you’re looking for Shopify website development or ecommerce website design, it’s essential to ensure the gateway integrates smoothly with your platform. Consider your business model, target audience, and growth prospects to choose a gateway that offers the best blend of security, flexibility, and cost-effectiveness. Ultimately, the right payment gateway will enhance the customer shopping experience, streamline transactions, and help you grow your business.
Top Payment Gateways for eCommerce in India (2025) – Choosing the Right One for Your Business
Selecting the right payment gateway is crucial for eCommerce success, ensuring seamless transactions, security, and customer trust. The best payment gateways offer multiple payment options, fraud protection, and smooth integrations with popular platforms like Shopify website development and eCommerce website design.
These gateways enhance your online store by reducing cart abandonment, supporting recurring payments, and enabling faster checkouts. Whether you’re catering to domestic customers or expanding globally, the right gateway ensures a secure, scalable, and efficient payment experience.
From UPI and credit cards to international payment solutions, these gateways provide flexibility and reliability. With advanced features like automated invoicing, multi-currency support, and real-time transaction monitoring, they help businesses maximize conversions and improve customer satisfaction.
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About the Author
Priya, Co-Founder of Emerge Digital, is a UI/UX enthusiast with 15 years of experience. She’s passionate about crafting user-centered designs that exceed expectations, delivering meaningful and engaging digital experiences. At Emerge Digital, Priya blends her deep expertise with a commitment to client and user needs, driving innovative design solutions.
