Payment Gateways for Indian Sellers: Best Options for 2025

After processing ₹2.3 Crore through 8 payment gateways in my artisan e-commerce business, I discovered the brutal truth most “review sites” won’t tell you:

“Your payment gateway isn’t just a tool – it’s a silent profit eater that can drain 37% of your margins if chosen wrong.”

Last Diwali season, I watched a brilliant Jaipur handicraft seller I mentor through My role as a Mentor for change with Niti Aayog lose ₹1.7 lakh overnight – not to poor sales, but to Razorpay’s hidden cross-currency fees and Paytm’s settlement delays.

The 2025 reality for Indian sellers:

• “Zero-fee UPI” has 11 hidden costs (I’ll expose them)
• RBI tokenization rules cripple unprepared businesses
• Tier 2 sellers are being exploited by “metro-first” gateways

As an 11-year e-commerce founder who’s processed over thousands of transactions, I’ve battled:

• Razorpay’s “2% fee” that ballooned to 4.8% for international sales
• Paytm holding ₹8.7L of our festival revenue for 11 days
• Village artisans losing 22% of earnings to payment failures

In this guide, you’ll get:

1. 2025’s REAL fee structures (not the marketing lies) with negotiable limits
2. Scripts to slash charges by 40% (“Hi Razorpay, [Competitor] offers 1.8%…”)
3. Tier 2/3 hacks: Zero-cost UPI setups for village sellers
4. CBDC & compliance shortcuts even my CA didn’t know

*This isn’t theoretical – it’s battle-tested across 1,000+ mentees in my Niti Aayog program.* Let’s reclaim your margins.

Top Payment Gateways in India – 2025 Overview

Let’s explore the top contenders one by one.

Razorpay

Razorpay has quickly become a top choice for Indian startups and online businesses, thanks to its developer-friendly platform, wide range of integrations, and modern, intuitive dashboard. Launched in 2014, Razorpay is now trusted by over a million businesses and offers much more than basic payment processing — including subscriptions, smart routing, invoicing, and even working capital solutions.

Key Features

• Supports 100+ payment modes: UPI, credit/debit cards, net banking, wallets, EMI, BNPL.
• Instant onboarding: Businesses can start collecting payments within minutes.
• Powerful APIs: Ideal for developers building custom checkout experiences.
• Smart payment routing: Increases success rate by rerouting failed payments in real-time.
• Subscription billing: Automatically charge customers on a recurring basis.
• RazorpayX: Add-on service for payouts, salary disbursements, and vendor payments.
• Integration: Native support for Shopify, WooCommerce, Magento, and custom apps.

Pros & Cons

Pros:

• Easy to integrate with most platforms
• High success rate, especially on UPI
• Real-time dashboard and analytics
• Extensive documentation for developers
• Robust ecosystem (payouts, subscriptions, lending)

Cons:

• Customer support can be slow during peak periods
• Slightly higher charges for international cards
• Refund settlements can take 5–7 days

Pricing & Fees (2025)

• UPI: 0% (Zero charges)
• Credit Cards: 2%–2.5%
• Net Banking: 1.5%
• Wallets & EMI: 2.5%
• International Cards: 3%
• Settlement Cycle: T+2 days (can vary)

Note: No setup fee or annual maintenance charge.

Best For

• Tech-savvy startups and D2C brands
• Businesses needing recurring billing or custom workflows
• High-growth eCommerce companies using platforms like Shopify or WooCommerce

Check out Razorpay Here

PhonePe Payment Gateway

PhonePe, India’s leading UPI-based payment platform, has now entered the business payments space with PhonePe Payment Gateway. Backed by the trust of 500M+ app users and deep penetration in Tier 2/3 India, PhonePe offers a reliable and familiar checkout experience for customers. For businesses, it combines simple onboarding with high UPI success rates and minimal transaction failures.

Key Features

• Deep UPI focus: Built natively for UPI, ensures 99%+ success rate on payments.
• Single SDK for mobile and web: Easy to integrate across devices.
• Instant settlements: Money is settled to merchant account faster than most gateways.
• User-friendly interface: Familiar checkout UI improves trust and reduces cart drop-offs.
• QR Code & offline payments: Available for blended (online + offline) businesses.
• Analytics & reporting: Simple dashboard for payment tracking.

Pros & Cons

Pros:

• Excellent UPI success rate (among the highest in India)
• Leverages PhonePe’s trusted brand and user base
• Easy onboarding and quick setup
• Mobile-first design; great for app-based businesses
• QR code support for offline integration

Cons:

• Limited support for international payments
• Fewer developer APIs than Razorpay or Stripe
• Not ideal for businesses needing complex billing workflows

Pricing & Fees (2025)

• UPI Payments: 0% (No transaction charges for most merchants)
• Cards & Wallets: ~2%
• Settlement Cycle: Often same day or T+1
• No setup or maintenance fees

Pricing may vary based on business type and volumes.

Best For

• UPI-dominant transaction models
• Indian mobile-first startups and apps
• Tier 2/3 focused eCommerce or local brands

Check out PhonePe here

Paytm for Business

Paytm is a household name in India, best known for revolutionizing digital payments post-demonetization. Beyond its consumer app, Paytm offers a robust payment gateway trusted by millions of merchants. It combines a massive user base, deep UPI integration, and a wide range of services — from payment collection to marketing tools and loyalty programs.

Key Features

• Supports 100+ payment methods: UPI, Paytm Wallet, cards, net banking, EMI, BNPL.
• Instant onboarding: Businesses can go live within 30 minutes.
• High brand trust: Familiarity boosts customer confidence.
• One-time integration: Covers website, apps, QR, and offline payments.
• Subscription billing: Easy recurring payments.
• Merchant dashboard: Track transactions, settlements, and refunds in real-time.
• Marketing tools: Cashback campaigns, loyalty programs, and promotional offers.
• Settlement speed: Often same day for wallet payments.

Pros & Cons

Pros

• Enormous consumer base (over 300 million users)
• No setup or annual maintenance fees
• Excellent for UPI and wallet payments
• Quick onboarding process
• Trusted brand enhances conversions

Cons

• Physical office address often required for verification
• Slightly higher TDR on some payment types
• Customer support can be slow for small merchants

Pricing & Fees (2025)

• UPI: 0% (typically no charges)
• Credit/Debit Cards: 1.99%–2.5%
• Net Banking: 1.75%
• Wallets/EMI/BNPL: Up to 3%
• International Payments: ~3.5%
• Settlement Cycle: T+1 to T+2 days

No setup fee or annual maintenance charges for standard services.

Best For

• Businesses wanting maximum reach and brand trust
• Merchants focusing on UPI or wallet payments
• SMEs looking for quick integration without technical hassles

Check Out Paytm here

Instamojo

Instamojo started as a simple platform for selling digital products and collecting payments through easy links. Today, it’s one of India’s most popular payment solutions for small businesses, freelancers, and creators. Its USP is simplicity—anyone can start collecting payments without a website, thanks to its instant payment links, mini online stores, and easy onboarding.

Key Features

• Payment Links: Shareable links to collect payments via WhatsApp, email, SMS, or social media.
• Zero coding required: Perfect for non-technical users.
• Online Store Builder: Create a mini online store in minutes.
• Smart Pages: Customizable landing pages for products and services.
• Multiple payment modes: Supports UPI, credit/debit cards, wallets, net banking.
• Payouts & settlements: Quick settlement options for businesses.
• Subscriptions & EMI: Built-in support for recurring payments and easy EMI options.
• Analytics & reports: Basic insights into sales and payments.

Pros & Cons

Pros:

• Extremely beginner-friendly
• Fast onboarding; start selling in minutes
• No website required
• Offers free online store option
• Passes convenience fee to customers if desired

Cons:

• Slightly higher per-transaction charges vs. other gateways
• Less suitable for high-volume enterprises
• Limited advanced API features for developers

Pricing & Fees (2025)

• UPI Payments: 0%–0.9% (varies by plan)
• Cards & Net Banking: 2%–3%
• EMI/Wallets: Up to 3%
• Settlement Cycle: T+3 days (faster with paid plans)

No setup or annual fees for basic accounts; premium plans available for advanced features.

Best For

• Small businesses and solopreneurs
• Digital product sellers and freelancers
• Merchants without websites who need fast payment solutions

Check out Instamojo here

Cashfree Payments

Cashfree has emerged as one of India’s fastest-growing payment solutions, popular for its fast settlements and innovative payouts system. Over 3 lakh businesses trust Cashfree, including well-known startups and SMEs. Besides payment collection, Cashfree excels in bulk payouts, making it a favorite for platforms handling refunds, vendor payments, or affiliate commissions.

Key Features

• Instant settlements: Same-day or real-time settlements for cash flow.
• 200+ payment modes: UPI, cards, net banking, wallets, BNPL.
• Payouts: Bulk disbursal to vendors, customers, or partners.
• Pre-authorization: Hold funds before confirming payments.
• Split payments: Useful for marketplaces.
• API-driven integrations: Developer-friendly tools.
• International payments: Supports multiple currencies.
• Auto-refunds: Quick refund processing.

Pros & Cons

Pros:

• One of India’s fastest settlement cycles
• Strong focus on payouts and refunds
• Easy to integrate APIs
• Competitive pricing
• Good support for startups and SMEs

Cons:

• Slightly fewer advanced analytics tools vs. Stripe
• International coverage not as extensive as global players
• Customer support can be slower during high-demand periods

Pricing & Fees (2025)

• UPI Payments: 0%–0.9% depending on plan
• Cards & Net Banking: ~1.75%–2.5%
• Wallets/BNPL: ~2.5%–3%
• International Payments: ~3.5%
• Settlement Cycle: Often same day or T+1

No setup fees for most businesses.

Best For

• Marketplaces needing split payments
• Platforms requiring bulk payouts
• Indian startups prioritizing fast settlements

Check out Cashfree here

CCAvenue

CCAvenue is one of India’s oldest and most established payment gateways, operating under Infibeam Avenues Ltd. It’s a powerhouse for businesses needing wide payment options, multi-currency support, and enterprise-level solutions. Trusted by government organizations, major corporations, and large eCommerce players, CCAvenue remains a top choice for businesses seeking comprehensive payment capabilities.

Key Features

• Supports 200+ payment options: Cards, UPI, net banking, wallets, EMI, international payments.
• Multi-currency support: Accept payments in 27+ foreign currencies.
• Dynamic Currency Conversion: Allows customers to pay in their own currency.
• PCI DSS Level 1 compliance: High security standards.
• Customizable checkout pages: Match your brand’s look and feel.
• Risk management tools: Advanced fraud prevention systems.
• Instant refunds: Improves customer experience.
• In-store payments: POS and card swipe machines integrated with online systems.
• CBDC-ready: Preparing to accept India’s Digital Rupee.

Pros & Cons

Pros:

• Extremely wide payment options
• Strong cross-border capabilities
• High security and fraud protection
• Customizable payment pages
• Suitable for both online and in-store payments

Cons:

• Slightly lower average success rate (~96.5%) compared to others (~99%)
• Integration can be more complex for smaller businesses
• Customer support sometimes slower for smaller merchants

Pricing & Fees (2025)

• UPI Payments: 0%–1% depending on plan
• Credit/Debit Cards: 2%–2.5%
• Net Banking: 1.5%–2%
• Wallets/EMI/BNPL: Up to 3%
• International Payments: ~3.5%
• Settlement Cycle: T+2 to T+3 days

No setup fee for standard plans; premium customizations may have charges.

Best For

• Large enterprises and marketplaces
• Government or institutional payment collections
• Cross-border eCommerce businesses
• Merchants seeking maximum payment coverage and customization

Check out CCavenue here

PayU Payment Gateway

PayU is a prominent global payment gateway provider, operating in over 17 countries and trusted by 4.5 lakh+ merchants in India. Backed by Naspers, PayU has become a go-to choice for businesses ranging from small startups to large enterprises, thanks to its flexible solutions, multilingual support, and a reputation for reliability in handling high transaction volumes.

Key Features

• Over 100+ payment options: Cards, UPI, net banking, wallets, EMI, BNPL.
• One-click checkout: Seamless payment experience for repeat customers.
• Smart routing technology: Improves transaction success rates.
• Multilingual support: Ideal for businesses targeting regional Indian audiences.
• Customizable SDKs & APIs: Great for tech-savvy businesses needing custom integrations.
• Fast refunds: Typically processed in under 5 minutes for many transactions.
• Risk and fraud management tools: Advanced protection for merchants.
• International payments: Supports 100+ currencies for cross-border transactions.

Pros & Cons

Pros:

• Excellent for handling high transaction volumes
• Multilingual support for regional audiences
• Fast refunds and settlement processing
• Good reputation among enterprise clients
• Robust security features and fraud detection

Cons:

• Slightly complex onboarding for small businesses
• Priority settlement often requires paid plans
• Customer support can be slow during high-traffic periods

Pricing & Fees (2025)

• UPI: 0%–0.9% depending on volume
• Credit/Debit Cards: 1.75%–2.5%
• Net Banking: 1.75%
• Wallets/EMI/BNPL: 2%–3%
• International Payments: ~3%–3.5%
• Settlement Cycle: T+2 days (can be expedited with premium plans)

No setup fees for standard services; premium services may have additional costs.

Best For

• Mid-sized to large enterprises needing scale
• Businesses seeking multilingual capabilities
• Merchants handling high transaction volumes or international sales

Check out Payu here

Stripe Payment Gateway

Stripe, the global payments giant, entered India’s market a few years ago and quickly gained popularity among startups and tech-focused businesses. Renowned for its world-class APIs, modern documentation, and global scalability, Stripe is ideal for developers building custom checkout experiences and companies aiming for cross-border expansion. While slightly pricier, it offers unmatched technical flexibility and innovative features like Radar for fraud detection.

Key Features

• Supports 135+ currencies for global payments.
• Developer-first platform with robust APIs and SDKs.
• Custom checkout UI: Fully customizable for brand experiences.
• Radar fraud detection: Advanced machine learning security tools.
• Subscription billing: Flexible recurring payment options.
• Instant payouts (in select cases).
• Built for marketplaces with Connect platform.
• Detailed analytics for payment insights.

Pros & Cons

Pros:

• Excellent global reach and cross-border capabilities
• Fantastic developer resources and documentation
• Customizable checkout and workflows
• Advanced fraud detection tools
• Scalable for high-volume enterprises

Cons:

• Slightly higher pricing than Indian-native gateways
• Limited local support offices in India
• Onboarding process more complex for smaller businesses

Pricing & Fees (2025)

• UPI Payments: ~2%
• Cards (Domestic): 2%–2.5%
• International Cards: ~3.5%
• Wallets/BNPL: Around 2.5%
• Settlement Cycle: T+2 or faster for eligible businesses

No setup or maintenance fees, but higher charges for international transactions.

Best For

• SaaS businesses and tech startups
• Companies seeking global expansion
• Enterprises needing advanced API-driven integrations

Check our Stripe here

BillDesk Payment Gateway

BillDesk is one of India’s oldest and largest payment gateway services, processing massive volumes for government departments, utilities, telecoms, insurance, and large enterprises. It’s less popular among small startups but remains a pillar of high-value, high-volume payments in India. With a focus on reliability and security, BillDesk is trusted for mission-critical payments where downtime is not an option.

Key Features

• Supports major payment modes: Cards, UPI, net banking, wallets, EMI.
• Extremely robust platform: Designed for enterprise-scale volumes.
• High transaction uptime: Trusted for government and utility payments.
• Customizable integrations: Tailored to enterprise needs.
• Recurring billing: Supports subscriptions.
• Detailed reconciliation reports: Useful for finance teams.
• Regulatory compliance: Works closely with banks and RBI.

Pros & Cons

Pros:

• Highly reliable for large transactions
• Trusted partner for government entities
• Good settlement discipline
• Strong reputation for security and compliance

Cons:

• Less startup-friendly
• Complex onboarding for small businesses
• UI/UX less modern than newer gateways
• Not known for fastest settlements

Pricing & Fees (2025)

• UPI Payments: ~0.9%
• Cards/Net Banking: 1.5%–2.5%
• Wallets/EMI: Up to 3%
• International Payments: ~3.5%
• Settlement Cycle: T+2 to T+3 days

Pricing highly negotiable for enterprise volumes.

Best For

• Government payments and utilities
• Telecom, insurance, and large enterprises
• Businesses processing very high-value transactions

Check out Billdesk here

Juspay Payment Gateway

Juspay isn’t a traditional payment gateway alone—it’s a powerful payments orchestration platform focused on improving checkout experiences and increasing payment success rates. Trusted by giants like Amazon, Ola, and Flipkart, Juspay handles billions of transactions monthly with an emphasis on ultra-fast, secure, and smooth payments.

Key Features

• Hyper SDK: Ultra-lightweight checkout that loads in <200ms.
• Smart routing: Automatically chooses the best payment route for high success rates.
• Tokenization: Advanced card token management for security and compliance.
• Customizable UI: Merchants can brand and tailor checkout flows.
• Risk management tools: Machine learning-based fraud detection.
• Multiple PSP integration: Orchestrates payments across several gateways.
• One-click payments: Improves user experience for returning customers.

Pros & Cons

Pros:

• Market leader in checkout optimization
• Used by India’s largest apps and eCommerce giants
• Incredibly fast load times
• Helps improve payment success rates
• Strong developer support

Cons:

• Not a standalone PSP for smaller businesses
• Requires integration with other payment processors
• Complex for very small merchants without tech teams

Pricing & Fees (2025)

• Juspay doesn’t directly charge typical gateway fees but takes a SaaS fee for its orchestration and optimization services.
• Transaction fees depend on the underlying PSP (Razorpay, PayU, etc.).
• Best suited for high-volume platforms willing to pay for optimization.

Best For

• Large-scale platforms needing super-fast checkout
• Apps with millions of users (Ola, Swiggy, etc.)
• Enterprises prioritizing success rates and user experience

Check out Juspay here

Comparison Table – Best Payment Gateways in India

Note:

• Juspay does not charge typical gateway fees—it provides orchestration services layered over other gateways, charging SaaS fees instead.
• Fees may vary based on transaction volume, business type, and negotiated deals.
• “T+1” means settlement the next working day after the transaction.

Razorpay: The Startup Darling (But Watch the Fine Print)

My Brutal 2025 Experience

*”In 2021, Razorpay’s ‘2% flat fee’ cost us 4.8% on international sales – a ₹2.3L mistake. Their support took 11 days to resolve. But their APIs? Flawless for automating 37% of our operations.”*
– Debansh, after processing ₹87L through Razorpay

2025 Pricing & Hidden Costs

Niti Aayog Mentee Case:
*”A Kanpur leather seller saved ₹37k/yr by emailing:*

*’Hi Razorpay, we process ₹15L/month. PayU offers 1.8% on cards. Match it or we switch next month.’*

Tier 2/3 Hack: Village UPI Dominance

1. QR Code Revolution:
   • Print “Scan Any UPI App” QR codes (not Razorpay-branded)
   • Attach to product packages with *”कस्टमर केयर: 9AM-5PM”* (Customer care hours)
2. Cashback Trick:
   • Add ₹10 cashback for UPI payments >₹500
   • Costs less than card fees

CBDC & Compliance 2025

• Digital Rupee Ready? Partial beta (not public yet)
• Tokenization Win: Cards saved pre-2022 still work until Dec 2025
• Action Item: Migrate to tokenized cards before festival season

Verdict:

*”Use Razorpay if: You’re tech-savvy OR need subscriptions.
Avoid if: You sell internationally OR operate in Tier 3 villages.”*

👉 Get Razorpay here
Exclusive deal for WebVerbal readers

PhonePe Payment Gateway: The UPI Emperor

My 2023 Diwali Disaster

“When 47% of our festive sales failed due to Paytm’s overload, PhonePe processed 92% of UPI payments instantly. But their lack of international support hurt our NRI customers.”

Tier 2/3 Superpower

Bareilly Hair Oil Seller Hack:

1. Trained 3 college students as “UPI ambassadors”
2. Paid ₹500/day to demonstrate payments at village haats
3. Result: 300+ new customers in 2 weeks

Negotiation Script:

*”We’re onboarding 200 new UPI users/month. Give us 0% fees for 6 months as pilot partners.”*

👉 PhonePe for UPI-First Businesses

Comparison Table

How Indian Payment Gateways Eat Your Margins – Hidden MDR fees, UPI charges, and settlement delays can silently drain your profits. Read the full breakdown →

Latest Trends in Indian Payment Gateways

India’s payments ecosystem is evolving faster than ever, reshaping how businesses and consumers transact. If you’re choosing a payment gateway today, it’s crucial to understand these emerging trends, so you’re not just picking for 2025—but for the future beyond.

Here’s what’s shaping the landscape right now:

1. Digital Rupee (CBDC) Integration

One of the most exciting shifts is the launch of India’s Central Bank Digital Currency—the Digital Rupee (CBDC). The Reserve Bank of India is steadily expanding pilot programs, and payment gateways are gearing up to integrate CBDC into their platforms.

For businesses, this means:

• Faster settlements directly through the RBI ecosystem
• Reduced intermediary costs
• Potentially lower transaction fees
• Improved traceability and compliance

Gateways like Razorpay and CCAvenue are already exploring CBDC-readiness, signaling that Digital Rupee payments might become mainstream sooner than many expect.

2. Buy Now Pay Later (BNPL) Goes Mainstream

BNPL isn’t just for eCommerce giants anymore. From small online sellers to offline merchants, businesses are embracing Buy Now Pay Later as a key driver for higher ticket sizes and conversion rates.

Payment gateways have started:

• Offering built-in BNPL options (e.g. Razorpay, PayU)
• Partnering with BNPL players like ZestMoney, LazyPay
• Providing analytics to track BNPL adoption and repayments

Expect BNPL integrations to become table stakes in 2025.

3. Focus on Multilingual & Regional Payments

India’s digital economy isn’t confined to English-speaking metros. Tier 2, 3, and even rural regions are adopting digital payments rapidly. Consumers want payment experiences in:

• Hindi, Bengali, Tamil, Marathi, Telugu, etc.
• Regional UPI handles and localized support

Gateways like PayU and PhonePe are pushing multilingual checkout pages, helping businesses connect with diverse audiences.

4. Instant Settlements Become the Norm

Once, waiting T+3 days for settlements was standard. In 2025, it’s increasingly unacceptable. Merchants want their money faster to keep cash flows healthy.

Players like Cashfree and PhonePe are leading the charge with:

• Same-day settlements
• Real-time settlement APIs
• Premium plans guaranteeing instant payouts even on weekends

5. Fraud Detection & Tokenization

Security is top of mind for both merchants and consumers. Payment gateways are stepping up with:

• Advanced AI-driven fraud detection tools (e.g. Stripe Radar, Juspay’s ML models)
• RBI-compliant card tokenization to store cards safely and comply with regulations
• Two-factor authentication flows optimized for smoother user experience

Businesses can’t afford to compromise here, as fraud directly impacts brand trust and customer retention.

6. Embedded Finance

Beyond processing payments, gateways are morphing into financial services hubs, offering:

• Business loans
• Vendor payouts
• Working capital solutions
• Expense management tools

Razorpay, Paytm, and Cashfree already blend payments with banking-like services, giving businesses powerful tools under one roof.

Why These Trends Matter?

Choosing a payment gateway is no longer just about fees and settlement times. It’s about:

• Staying compliant with new RBI rules
• Capturing emerging opportunities like CBDC
• Serving customers across languages and regions
• Leveraging value-added services to grow your business

If you’re building for 2025 and beyond, keep these trends in mind while shortlisting your payment gateway partner.

FAQs – Best Payment Gateways in India

Q1. Which payment gateway has the lowest fees in India?

If you’re looking purely at transaction costs, UPI payments are often free or close to zero charges with most gateways like Razorpay, PhonePe, and Paytm. For cards, fees typically range between 1.75% to 2.5%. If you’re a small business with low volumes, Instamojo can be a good choice despite slightly higher per-transaction fees because of its ease of use and no setup costs.

Q2. Which payment gateway settles funds the fastest?

Cashfree and PhonePe Payment Gateway are leading the pack for instant or same-day settlements. Many other providers like Razorpay and Paytm have improved to T+1 or T+2 cycles, but if cash flow speed matters to you, look for gateways explicitly offering real-time settlement options—even if at a small extra cost.

Q3. What’s the best payment gateway for small businesses?

• Instamojo – Perfect for freelancers, solopreneurs, and those without a website. You can start collecting payments with simple links.
• Paytm PG – Excellent for trust and fast onboarding, especially if your customers already use the Paytm wallet or UPI.
• Cashfree – Great for small businesses needing fast settlements and easy integration.

Ultimately, the best choice depends on your business size, payment volume, and technical resources.

Q4. Can I use multiple payment gateways at once?

Absolutely. Many businesses integrate two or more payment gateways for:

• Better success rates
• Lower downtime risk
• Cost optimization

Platforms like Juspay even help orchestrate multiple gateways behind a single checkout flow, automatically routing payments for maximum success.

Q5. Is UPI really free for businesses?

Mostly yes—but there’s a catch. For P2P (person-to-person) UPI transactions, there’s no charge. However, merchants accepting UPI payments via commercial payment gateways may incur small charges (typically up to 0.9%). Always confirm with your gateway partner to avoid surprises.

Q6. Which gateway is best for international payments?

If you want to sell globally:

• Stripe – Fantastic for multi-currency, global customers, and SaaS businesses.
• CCAvenue – Excellent for multi-currency support and cross-border settlements.
• PayU – Strong for handling both domestic and international transactions.

International payments generally carry higher fees, around 3% to 3.5%, so factor that into your pricing.

Q7. What about RBI tokenization rules? Will they affect my payment gateway?

Yes—tokenization is mandatory for card transactions under new RBI rules. All major gateways (Razorpay, Stripe, Juspay, etc.) are compliant, storing customer card data securely using tokens. This enhances security and keeps you legally compliant without impacting the checkout experience for your customers.

Q8. How do I choose the best payment gateway for my business?

Consider:

• Transaction costs
• Settlement speed
• Payment methods your customers prefer (UPI, cards, wallets, BNPL)
• Integration complexity
• Support for refunds, subscriptions, or international sales

Think long-term: choose a partner who can keep up with trends like the Digital Rupee, BNPL, and multilingual support.

Quick Tip:

Don’t choose a gateway purely on price. Look at success rates, support quality, and how well the platform fits your specific business needs. The cheapest gateway isn’t always the best if payments fail or support is lacking.

The Ultimate Payment Gateway Negotiation Playbook

*Scripts That Saved My Mentees ₹17L+ in 2023*

Rule #1: Always Negotiate Before Peak Season

*”Payment gateways drop fees by 15-40% when they know you’ll bring festive volume.”*

Email Templates That Work

For Razorpay/PayU (Volumes <₹10L/month):

text

Subject: Fee Reduction Request - [Your Business] Processing ₹[X]/Month  

Hi [Gateway] Team,  

We've processed ₹[Amount] through your platform in the last 90 days with a [X]% success rate.  

[Competitor] offers [Lower Rate]% for similar volumes. Can you:  
1. Match this rate?  
2. Waive GST on fees until Diwali?  
3. Expedite settlements to T+1?  

If yes, we'll move ₹[Amount] in monthly volume to you exclusively during Q4.  

Regards,  
[Your Name]  
Founder, [Business]   

Success Rate: 63% (Tested with 37 mentees)

For CCAvenue/BillDesk (Volumes >₹20L/month):

text

Subject: Enterprise Contract Review - [Your Business]  

Dear [Manager],  

We're reviewing payment partners for 2025 and value our relationship with you.  

To continue:  
- Reduce card fees to 1.5%  
- Cap international fees at 3%  
- Include CBDC settlement at no extra cost  

Our CFO will sign by [Date] if terms are accepted.  

Attached: 6-month transaction report  

Pro Tip: Forward competitor quotes (even blurred) for 22% faster responses.

Tier 2/3 Case Study: Voice UPI Revolution in Muzaffarpur

*How Farmer Rajesh Scaled to 200 Orders/Month Without Internet*

The Problem:

*”70% of Rajesh’s customers were daily-wage laborers with:

• Basic phones (no apps)
• Zero online payment experience
• Deep fear of ‘digital fraud'”*

The 4-Step Voice UPI Hack

1. IVR Order System:
   • Customers call XXXX-XXXXXX, press 1 for “order”
   • Hear menu in Bhojpuri: “Litchi 1kg ke liye 3 dabaiye” (Press 3 for 1kg litchi)
2. Payment Confirmation:
   • System replies: “₹120 pay karo 9XXXXXX21@ybl par” (Pay ₹120 to 9XXXXXX21@ybl)
3. Offline Verification:
   • Farmhands visit villages with printed transaction lists
   • Verify payments with “Kisko bheja paisa? Dikhao SMS” (Who did you pay? Show SMS)
4. Delivery Triggers:
   • Auto-rickshaw dispatched after SMS screenshot

Results:

Tools Used:

• Free IVR: Google Voice
• Payment Tracking: Google Sheets + WhatsApp Cloud API

CBDC Compliance Template (2025 RBI Rules)

For Artisans/SMEs – No Lawyer Needed

Your 7-Day CBDC Action Plan

1. Update Terms:diff- “We accept UPI, cards, and wallets” + “We accept UPI, cards, wallets, and Digital Rupee (e₹)”
2. Train Staff:
   • Use this script for customer questions:
   “e₹ se paisa bhejne par koi extra charge nahi. Aapka balance RBI ke pass safe rahega.”
   (No extra charge for e₹. Your money stays safe with RBI)
3. Gateway Integration:GatewayCBDC StatusAction RequiredRazorpayBeta testingEmail support to join waitlistCCAvenueLive for enterprisesSubmit GST turnover proofPhonePeNot availableUse RBI’s e₹ Sandbox
4. Display Compliance Badge:
   Add to website footer with link: “Digital Rupee FAQ”

Penalty Avoidance Checklist

• Display e₹ logo at checkout
• Record CBDC transactions separately in GST filings
• Verify customer KYC for transactions >₹50,000
• Update privacy policy:
• *”We comply with RBI CBDC data localization norms (No. 12/2025)”*

Conclusion & Recommendations

Choosing the best payment gateway in India for your business in 2025 is not just about comparing fees — it’s about aligning with a partner that supports your growth, protects your customers, and stays ahead of evolving trends like UPI, BNPL, and the Digital Rupee.

If you’re a small business, freelancer, or just getting started:
👉 Instamojo and Cashfree offer ease of use, fast onboarding, and flexible pricing.
👉 PhonePe is a solid UPI-first option with high success rates and zero setup fees.

If you’re scaling up and need advanced features:
👉 Razorpay gives you full control with powerful APIs, subscriptions, and ecosystem tools.
👉 PayU and Stripe are great for multi-language or international ambitions.

For enterprises handling large-scale or government payments:
👉 CCAvenue and BillDesk are legacy players known for reliability, security, and compliance.

And if checkout optimization and higher payment success rates are critical to your app or platform:
👉 Juspay is your best bet for a seamless payment experience.

Final tip: Always test 2–3 gateways before locking in one. Look beyond pricing—what matters is reliability, support, integration ease, and customer experience.