Online payments have swiftly become an integral part of daily transactions, revolutionizing how we conduct business. In India, several leading fintech companies offer robust payment gateway solutions tailored for startups. A payment gateway is essential software that facilitates online transactions across various payment methods, including debit cards, credit cards, UPI, and internet banking. It serves as a secure bridge between customers and merchants, ensuring that sensitive information—like credit card details entered on an e-commerce site—is transmitted securely and efficiently from the customer to the acquiring bank.

While banks can directly offer payment processing services, many startups choose to partner with authorized payment agents. These agents help manage fraud risks and safeguard merchants against issues such as underfunding, expired cards, and transactions that exceed credit limits. The payment process involves several key players:

• Merchant: The entity that sells goods and services to customers.
• Customer: The individual or cardholder who accesses the products or services provided by the merchant.
• Issuing Bank: The bank that issues the debit or credit card on behalf of the card network (such as Visa or MasterCard) to the customer.
• Acquirer (Acquiring Bank): The financial institution that maintains the merchant’s bank account and facilitates the transaction process.

This ecosystem ensures a seamless and secure online shopping experience, allowing businesses and consumers to transact with confidence in today’s digital age.

Here are some of the best payment gateways for Indian startups:

1. Instamojo:

Instamojo is one of the best on-demand payment gateways for startups and retailers and launched its user-friendly dashboard in 2012. It is a free payment gateway in India with no maintenance fees. It is easy to set up your startup to sell and collect payments online via mobile and web without any physical network. Any seller with a bank account can join Instamojo to start selling digital products and get paid. A bank account, phone number, and PAN card remain the only requirements. This helps startups find the right customers by bridging the gap between buyers and sellers. You can download the Instamojo app from the Play Store on your Android device.

2. CC Avenue:

CC Avenue supports almost all banks and payment options, making it one of the most preferred payment gateways for startups. The company was started in 2001 and allows customers to use major credit cards including Visa, MasterCard, Diners Club, and Amex. There are over 200 payment options including analytics, audits, and multi-currency processing. It is highly reliable and has an in-built dashboard and real-time analytics. CC Avenue lets you be served in the best marketplaces across the world, with support for 27 major currencies. High-volume e-commerce sites like Snapdeal, Myntra, and Naukri use it.

3. PayU:

PayU is quick to set up, allows you to upload documents directly to the site for verification, and is very quick to get up and running. PayU offers a variety of pricing plans. Each plan has additional features such as store card functionality, IVR payments, multi-currency gateways, and payment analytics. PayU India has transformed PayU and PayU Money into independent and transparent companies. PayUbiz is now used by large companies like Snapdeal. PayUMoney is designed for small businesses and startups and comes with a wallet service, email billing functionality, a free website, and requires no technical knowledge. The platform is integrated with leading e-commerce players in the country like Snapdeal and Jabong.

4. DirecPay:

DirecPay is one of the most comprehensive payment gateways with simple registration and multiple payment options. Payments can be made through cash, cheque, bank transfer and online payments through various payment methods including debit cards, credit cards and online banking. Our service provides a fast and easy way to access this platform for Indian sellers doing business online and contributes to the large market of retailers who want to sell online. Most notably PolicyBazaar, Indiatimes, Google India and Paytm use DirecPay.

5. Cashfree:

Cashfree is one of the cheapest payment gateways. It helps businesses collect and distribute payments through various payment methods including Visa, MasterCard, Rupay, UPI, IMPS, NEFT, PayTM, other wallets, pay later and various EMI options. It offers the lowest interest rates on deposits in India and the fastest payment cycle of 24 to 48 hours. Cashfree is one of the best free website payment gateways in India that helps you analyze your website name and provides pop-ups, subframes and complete payment methods. It can also act as an international payment gateway.

6. RazorPay:

RazorPay was founded in 2013 and is one of the best payment gateways for startups based in Bangalore. The setup is very easy and the interface is simple. Easily collect local and international payments and access all payment methods like credit cards, debit cards, online banking, UPI, and wallets. It also facilitates the movement of funds from start to finish. Another interesting feature of RazorPay is that it sends personalized emails to your customers, reminding them about upcoming payments or failed transactions. It also automates bank transfers, invoice sharing, and provides working capital loans to users.

7.Paypal:

PayPal is a globally recognized and trusted payment gateway. There is no doubt that it can be the first choice for startups looking to accept large cross-border payments. Customers can use PayPal to transfer funds to their bank accounts, get working capital loans, and receive payments. You can easily request and send payments on the platform and allow your customers to create invoices and receipts. Additionally, customers can pay using their preferred method, including debit cards, credit cards, PayPal, and credit cards. PayPal facilitates phone transactions and even helps with integration with social media accounts.

8. Stripe:

Stripe is a complete payment platform that works efficiently with subscription companies, brick-and-mortar stores, e-commerce sites, and virtual marketplaces. It facilitates transactions in local currencies. It also has an isolated infrastructure for storage, transmission, and decryption. Stripe has strict security and compliance, so customers don’t have to worry about fraudulent transactions. The gateway makes this possible thanks to AES encryption. There are no setup fees, monthly fees, or hidden charges to use Stripe. SEPA Debit, SOFORT, iDEAL, and AliPay are available. Stripe helps you reach customers around the world.

9. Payoneer:

Payoneer is a payment gateway that allows you to accept bulk payments from marketplaces and customers around the world. A fast, secure and affordable gateway that provides all the solutions for startups. We offer the option to automatically transfer funds to your bank account at competitive interest rates. Compared to other gateways, Payoneer charges lower transaction fees. Supports around 200 countries and 150 local currencies. Once you receive money from Payoneer, you can transfer it to your bank account and withdraw it in your local currency.

10. Authorize.net:

Authorize.net is a leading payment gateway with the simplest payment process, allowing you to accept online and credit card payments quickly and efficiently, anytime, anywhere. Free setup and low monthly gateway fees are provided. It supports recurring billing, just-in-time service and multiple payment types such as Visa, MasterCard, Amex and JCB for customers. Other services provided by Authorize.net include simple payment options, account updates, advanced fraud detection, customer information manager and online billing.

As e-commerce is booming in India, choosing a good payment gateway is crucial. Almost all startups have shifted to online payment options to reach the global market and enable customers to make online transactions quickly and easily. A good payment gateway can help protect your customers from security breaches and transfer funds safely across payment sites. Depending on the transaction volume, site security, and pricing, you can choose the best gateway for your startup.