Note (September 2026): Several gateways in the original 2017 list have since closed, merged or changed: PayZippy shut in 2014, Citrus Pay was absorbed by PayU after 2016, PayPal ended domestic payments in India on 1 April 2021, and Google Wallet is not a merchant gateway. The entries below now say so, and fees reflect official pricing pages.
The best payment gateways in India for online business, as of September 2026, are the RBI-authorised payment aggregators such as Razorpay, PayU and CCAvenue. Razorpay and PayU both list a standard fee of 2% per successful domestic transaction plus 18% GST on the fee, with no setup or annual charge. PayPal now serves only international (cross-border) sales for Indian merchants.
Key Takeaways
- In India, online payment aggregators that handle merchant funds must be authorised by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007.
- Razorpay, PayU and CCAvenue state that they hold RBI payment aggregator authorisation; Instamojo’s application was returned by the RBI in September 2023.
- Standard published fees as of September 2026: Razorpay 2%, PayU 2% (3% for Amex, Diners, EMI and international), Instamojo 2% + Rs 3 per transaction, each plus 18% GST on the fee.
- PayZippy (closed 2014), Citrus Pay (merged into PayU) and Google Wallet (a consumer wallet) are no longer options for merchants.
- PayPal stopped domestic payments in India on 1 April 2021 and is useful only for receiving payments from abroad.
Payment Gateways plays a vital role when it comes for making any transactions through credit card or for the electronic payments like Internet Banking, Debit Card etc. These facilities are very important for the home based Internet payments.
Payment Gateways in India for eCommerce Ventures: Status and Fees
Generally the role of the payment gateway is like between bank and the mobile application. Like when a person makes a payment, the merchant’s website sends the details of the credit card to the preferred payment gateway. And then the gateway look for the validation of the details with the bank and the money transfers from the preferred account to the account of merchants.
But as you will do your transaction through the payment gateway you should know about the best Payment Gateway in India for Online Business.
Best Payment Gateways in India – That you can try for your Payment methods.
PayKun
PayKun Payment Gateway is becoming famous among merchants due to its fast onboarding and free integration service. The set-up fee and annual maintenance charge is zero.
In 2017 the transaction charge was a flat 2% for all payment modes. When checked in September 2026, paykun.com returned a server error, so current PayKun pricing and service status could not be confirmed; check both directly with the company before signing up. Their customer support service is very responsive in solving the issues. PayKun advertised fast settlement of transactions; no independent figure for its transaction success rate was found.
PayU India
PayU is one of the leading payment gateways in India and is owned by the Naspers group through Prosus. According to a May 2025 report, PayU Payments Pvt. Ltd. received final RBI authorisation to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. When this article was first published in 2017, e-commerce sites such as Jabong and Snapdeal were named among its clients. PayU’s pricing page, as of September 2026, lists 2% per transaction for Visa, Mastercard, net banking, BNPL and wallets, and 3% for Diners, American Express, EMI and international payments, plus 18% GST, with no setup fee or annual maintenance charge. Custom pricing is offered to high-volume merchants.
Razorpay
Razorpay was founded in 2014 in Bengaluru by IIT Roorkee alumni Harshil Mathur and Shashank Kumar and went through the Y Combinator Winter 2015 batch. Razorpay says it holds RBI authorisations for online, offline and cross-border payment aggregation. It has a given a complete revolution to the online payment procedures by their good privacy and secure methods of payments. Its APIs and plugins are designed to be easy to integrate. As of September 2026, Razorpay’s pricing page lists a standard fee of 2% per successful transaction across domestic cards, UPI, net banking and wallets, plus 18% GST on the fee, with no setup fee or annual maintenance charge.
PayPal
PayPal is one of the best-known payment services in the world, with 426 million active registered accounts in 202 markets as of 2022, according to Wikipedia. For Indian businesses, however, PayPal wound down its domestic payments business from 1 April 2021 and now focuses only on cross-border payments, so it can be used to receive money from overseas customers but not to accept payments from customers inside India. The process for making payment through it is very easy. PayPal lets customers send, receive and hold funds in 25 currencies. By PayPal you can upload cheques through the camera of your mobile. The older figure of 130 million accounts is out of date; see the 2022 figure above.
Google Wallet
Google Wallet is not a merchant payment gateway. The original Google Wallet launched in the US on 19 September 2011, was merged into Android Pay and rebranded Google Pay on 8 January 2018, and a new Google Wallet app (a digital wallet for cards, passes and tickets) was announced in May 2022. Google Wallet was introduced in India on 8 May 2024 and works alongside the Google Pay app. Indian merchants who want to accept Google Pay (UPI) payments online do so through an RBI-authorised payment gateway rather than through Google Wallet itself. Sending money as a Gmail attachment was a Google Wallet feature announced in the US in May 2013; it was never a merchant service in India. For an Indian e-commerce business, Google Wallet is therefore not a substitute for a payment gateway.
Direcpay
It is one of the secure ways of gateway used for payment. The security like Norton makes it easy for the integration in e-commerce business. The registration process is very simple by which you can make flexible payment. It also has an EMI option too. In 2017 activation took about 5 days. When checked in September 2026, the direcpay.com domain did not resolve, so DirecPay’s current availability could not be confirmed; merchants should look for an RBI-authorised alternative.
Direcpay
Citrus Pay
Citrus Pay no longer operates as a separate gateway. PayU acquired Citrus Pay in September 2016 for $130 million, Citrus Pay’s wallet licence was cancelled on 19 April 2017, and its customers were migrated to PayU, so merchants should use PayU instead. The Citrus need a scanned copy of the documents and hard copy too for getting signing in to it. These kinds of gateways are ideal for the small entrepreneur also.
CC Avenue
CCAvenue is one of India’s longest-running payment gateways. The claim that it handles more than 80% of Indian e-commerce could not be verified. As of September 2026, CCAvenue’s website states that it is an RBI Authorised Payment Aggregator (Certificate of Authorisation No. 251/2025) and is operated by AvenuesAI. CCAvenue advertises more than 200 payment modes, including credit and debit cards, bank EMIs, net banking, UPI and prepaid instruments, plus multi-currency processing with settlement in INR. It does not publish a standard fee on its homepage.
EBS Payment Gateway
EBS Payment Gateway offers secure payment methods. EBS (E-Billing Solutions) was acquired in September 2011 by Belgium-based Ogone, which French payments company Ingenico bought in 2013; Worldline announced its acquisition of Ingenico in February 2020, so EBS has changed hands several times. In 2017 EBS listed commission rates of 2.75% to 3.75% for internet banking and credit cards, a setup fee of Rs 11,999 and an annual fee of Rs 2,400. These are historical figures; confirm current terms directly before choosing it.
Pay Zippy
PayZippy has closed. Flipkart launched it in July 2013 and announced its shutdown in September 2014 because it failed to win as many customers as expected. The description below is kept for the record only. They have several renowned platforms which include WordPress, Magneto etc. You can also integrate PayZippy through its app. The PayZippy API will protect you to do seamless combination of payment gateways in the app.
Instamojo
Instamojo was founded in 2012 and lets small businesses collect payments for goods. It can also collect payments for eBooks, reports, tickets etc. The setup part of this gateway is very easy.
They also have features like instant on boarding facilities. As of September 2026, Instamojo’s pricing page lists 2% + Rs 3 per transaction for the payment gateway and payment links, plus 18% GST on the fee (the 1.9% rate quoted in 2017 no longer applies). Its online store plans range from a free Lite plan to paid annual plans. The RBI returned Instamojo’s payment aggregator application in September 2023; Instamojo suspended its own aggregator and payouts function, works with licensed payment aggregators for those functions, and says its payment gateway continues to operate. You can list the services by creating a payment link by yourself.
Now you have already understood that what the main facts of Payment Gateways are. As these methods play a vital role for merchants and eCommerce businesses, choose an actively operating, RBI-authorised gateway from the list above rather than one that has closed or merged. Just make your choice in a perfection manner so that you don’t face any problem during the transactions.
Which Payment Gateways in India Still Operate?
The status of each gateway in the original list, as of September 2026, is summarised below. Fees are the standard published rates from each company’s own pricing page and exclude 18% GST on the fee; prices change, and high-volume merchants can usually negotiate.
| Gateway | Status (September 2026) | Standard published fee |
|---|---|---|
| Razorpay | Operating; RBI-authorised payment aggregator | 2% per domestic transaction, no setup or annual fee |
| PayU India | Operating; final RBI authorisation reported May 2025 | 2% (Visa, Mastercard, net banking, wallets); 3% (Amex, Diners, EMI, international) |
| CCAvenue | Operating; RBI Certificate of Authorisation No. 251/2025 | Not published on homepage |
| Instamojo | Gateway operating; RBI returned its aggregator application in September 2023 | 2% + Rs 3 per transaction |
| PayPal | Cross-border only since 1 April 2021 | Check PayPal India’s fee page |
| PayKun | Website returned a server error when checked | Could not be confirmed |
| EBS | Acquired by Ogone (2011), later part of Ingenico and Worldline | Confirm directly |
| DirecPay | Domain did not resolve when checked | Could not be confirmed |
| Citrus Pay | Merged into PayU after its 2016 acquisition | Use PayU |
| PayZippy | Shut down by Flipkart in 2014 | Not available |
| Google Wallet | Consumer digital wallet, not a merchant gateway | Not applicable |
What Is a Payment Gateway?
A payment gateway is the service that securely captures a customer’s card, UPI, net banking or wallet details on a website or app, sends them for authorisation to the bank or network, and returns an approved or declined result to the merchant. In India, most online businesses use a payment aggregator, a company that provides the gateway technology and also collects customer payments before settling them to the merchant’s bank account.
For a step-by-step look at the card side of this process, see how credit and debit card payment processing works.
Why RBI Authorisation Matters
The Reserve Bank of India regulates online payment aggregators under the Payment and Settlement Systems Act, 2007, and payment aggregators need its authorisation to handle merchant funds. An authorised aggregator has passed the RBI’s eligibility checks, which gives merchants more confidence that settlements will continue.
The Instamojo case shows why this matters: after the RBI returned its application in September 2023, Instamojo suspended its own aggregator function and routed those payments through licensed partners. Before signing up, check that the provider names its RBI authorisation on its website, and confirm it against the RBI’s current list of authorised payment aggregators.
How to Choose a Payment Gateway in India
- Confirm RBI authorisation and that the company is still actively operating.
- Compare the total cost: the percentage fee, any fixed per-transaction charge, 18% GST on the fee, and any setup or annual charges.
- Check payment methods: UPI, cards, net banking, wallets, EMI and, if you sell abroad, international cards and currencies.
- Check settlement time and how refunds and chargebacks are handled.
- Check integrations for your website platform, mobile app or invoicing tool.
- Test support before you commit, because failed payments cost sales.
The site’s 12-step checklist for choosing a payment gateway in India goes into more detail, and how a payment gateway affects business growth explains why checkout reliability matters.
Which Gateway Suits Which Business?
- Startups and small online stores: Razorpay and PayU publish simple pay-as-you-go pricing with no setup fee.
- Creators and very small sellers: Instamojo offers payment links and a free Lite online store plan, with a gateway fee of 2% + Rs 3 per transaction.
- Businesses wanting many payment modes: CCAvenue advertises more than 200 payment modes and multi-currency processing.
- Exporters and freelancers paid from abroad: PayPal remains an option for cross-border payments only.
Common Mistakes to Avoid
- Signing up with a gateway that has closed or merged, such as PayZippy or Citrus Pay.
- Comparing headline percentages without adding GST and fixed per-transaction charges.
- Assuming PayPal can accept payments from customers in India.
- Ignoring checkout trust signals; trust badges on ecommerce sites can help reassure buyers.
Frequently Asked Questions
Which is the best payment gateway in India?
There is no single best payment gateway in India for every business. As of September 2026, Razorpay, PayU and CCAvenue are widely used and state that they hold RBI payment aggregator authorisation; compare their fees, payment modes and settlement terms against your needs.
What are payment gateway charges in India?
Published standard fees as of September 2026 are 2% per domestic transaction for Razorpay and PayU, 3% for PayU’s Amex, Diners, EMI and international payments, and 2% + Rs 3 per transaction for Instamojo, each plus 18% GST on the fee. Prices change, so check each pricing page.
Can I use PayPal to accept payments in India?
Indian businesses can use PayPal only for international payments. PayPal wound down its domestic payments business in India from 1 April 2021, so customers inside India cannot pay an Indian merchant through PayPal.
Is Citrus Pay still available?
Citrus Pay is no longer available as a separate gateway. PayU bought Citrus Pay in September 2016, and its customers were migrated to PayU after its wallet licence was cancelled in April 2017.
Do payment gateways in India need an RBI licence?
Online payment aggregators in India need RBI authorisation under the Payment and Settlement Systems Act, 2007. Merchants should confirm that a provider holds this authorisation before signing up.
Can I accept UPI payments on my website?
Yes, UPI payments can be accepted on a website through a payment gateway; Razorpay’s pricing page lists UPI among its supported domestic methods. For in-person sales, see the advantages of QR code payments.
2 Comments
Outstanding content on payment gateway i learned lot of things about it.
Thanks a lot !
Hey Harshil,
A payment gateway is an e-commerce element that really allows a customer to use internet transactions via credit or debit cards securely. A bad payment gateway results in bad payment options, ultimately leading to a decline in the total sales.
CCAvenue is one of the largest payment gateway in India, offering wide range of payment options. You have shared amazing collection of Payment gateways and from my best knowledge they are really great for secure transaction. Eventually, thanks for sharing your worthy thought with us.
With best regards,
Amar kumar