Which are the Best Payment Gateways for Small Businesses in India 2021

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Which are the Best Payment Gateways for Small Businesses in India? 

When you are carrying out a presence online through developing an online store, or by setting up an E-commerce business, the most crucial thing that you’d require is a ‘Payment Gateway’. Payment Gateways ensure proper payments and successful transactions on your platform or the website. Payment gateways, if chosen wrongly can cost you a huge transaction fee and even failed and bogus transactions, which would spoil the reputation and trust of your business. Hence, you should always choose a decent Payment Gateway. 

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What is Payment Gateway? 

According to its literary definition, ‘A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.’ Payment Gateway is the only interface that carries on transactions smoothly without any hindrance.   

Things to be considered before setting up a Payment Gateway  

There are many Payment Gateways in India that can be used for your store or E-commerce website and of course you should always go for the best. Following are the few things that should be considered before selecting your payment gateway. 
1. The costing 
Payment Gateways are not available for free, they cost you some amount of money depending on the type of gateway you select. Before aiming for any type of gateway you should always check their costing. These costings are the setup fees, TDR, the annual fee, transaction fee, and so on. You must compare and choose the payment gateway that offers you the lowest fees.  
2. Time 
A Payment Gateway should not consume more time during transactions and also while setting up the payment Gateway. Nobody likes to wait, and especially while making payments. If it takes longer than the usual time, customers start to panic and have trust issues with the website. Your preferred Payment gateway should consume very little time. 
3. Various Payment Options 
Your Payment Gateway should offer you various payment options for your customers, so they can choose their own preferred method or medium for making the payment. Let’s say your favourite medium of payment is Paytm and while making a payment you find out that the website doesn’t offer that medium, this would make you rethink your intended purchase. 
4. Support 
By support, it does not mean the setup and transaction support but also the after-sale support. You need a supplier or a third party that would also support you after your sales. It is very important for the future of your business; hence it is always advisable to rely on customer reviews about Payment Gateways.  

Best Payment Gateways in India. 

There are too many Payment Gateways in India that you can use for your store. However, professionals would always go for the best and you cannot risk the most important aspect of your business. Let us have a look at a few of the best Payment Gateways out there. 
1. Razorpay 
Currently considered as the leading and the most used Payment Gateway in India, Razorpay has zero setup fees and zero annual fees for its users. It charges around 2% to 3% of transaction fees, depending on the payment method opted by the customer. Razorpay is said to be the first Payment Gateway that has launched a subscription product. With a modern type of Payment Interface, Razorpay also has innovative products such as UPI auto pay, Payment links, Smart Collect, and Payment Pages. You can definitely try this one out for your small business.  
2. Instamojo 
One of the trending Payment Gateways used widely is Instamojo. It was started recently, in 2012, and only allowed payment for digital goods but over the years it has evolved payments for various merchandise, and different types of goods. Instamojo has no setup fees or annual fees, it charges a transaction fee of 2% + 3rs. One of their well-known features is instant registration, in this type of feature, you can instantly register by answering a few questions, and by providing your Pan card and bank details. Highly recommend for small businesses.   
3. CCAvenue  
Considered as one of the oldest types of Payment Gateway, CCAvenue is tested and tried by many users, few of them being, Snapdeal, Myntra, Airtel, and more. One of the major reasons why small businesses should opt for CCAvenue is because it offers no setup fee for start-ups, you may also try to lower the annual maintenance fees, which is normally around Rs.1200, their transaction fee varies from 2% to 4%. Another advantage is that CCAvenue supports many banks and payment options, which works even in consumer’s favor.  
4.  PayU Money  
With zero registration and annual fees, PayU Money is another one of the best Payment Gateways used widely in India. They have many payment options available, and also, they have good security such as SSL secured transactions with two-factor authentication. Their transaction cost is around 2%, which is minimal for small businesses.   
5. MobiKwik 
One of the modern and coolest types of Payment Gateway that is gaining a lot of popularity among users is MobiKwik. It is a mobile phone-based payment gateway that is also user friendly. It offers its services not just to individuals but also businesses. Just like other well-known payment Gateways, MobiKwik offers many payment options during a transaction for customers. Their transaction fees vary according to custom, and negotiable.  
6. CashFree 
Last but not the least, we have CashFree, a bulk pay-out and payment gateway company. It has over more than 100 payment options available with it. Reviews claim that more than 3500 businesses has collected around Rs.2500 crores through CashFree. That is a huge number and that is why CashFree can be used for small businesses. It has no setup costs or annual maintenance; its transaction fee is 1.95% 


Payment Gateways helps your business to successfully carry out transactions without any delay and maintaining security and privacy. Payment Gateways should be selected on the basis of their costs, time of setup and transaction, the payment options they offer, and the after-sales support. The best Payment Gateways in India for small businesses are, Razorpay, Instamojo, CCAvenue, MobiKwik, PayU Money, and CashFree. 

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