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Payment gateways in India

Every person looking to start a business online faces a daunting task, to choose a payment gateway. You require a safe, quick, diverse and most importantly, reliable gateway to get the best out of your company. Before we get started on the Indian scenario in this competitive market it is important to understand what a payment gateway really is.

authorizationEssentially it is an application service provider that facilitates the payment through your cards when you buy something online. When a customer buys a product online it is the payment gateway which receives the account information from the concerned website. If it is a net banking transaction the gateway directly engages with the customer’s banks. If it is a card transaction then these details are passed onto the issuing bank, which checks up with the Visa and MasterCard network and after confirming the information it transfers the payment to the payment gateway which cuts its commission and then transfers the funds to the e-commerce site.

Choosing a payment gateway can be a tough task. While there are certain larger fishes in the pond, the smaller ones have quite interesting features which makes them hard to resist. Different customers have very different needs in terms of the gateway service that suits them best. If your company handles a very large amount of daily transactions then the facility you would require is very different from those who handle a lesser volume.

So what all should be kept in mind while choosing your payment gateway?

  • First and foremost the reliability of the service, you don’t want to lose out on a valuable customer just because there is an error in the payment. Success rate is one of the biggest criteria to evaluate a payment gateway. “Even a 1% improvement in success rates can add Rs 20 crore to our topline,” says Kunal Bahl, CEO, Snapdeal.

  • Good Rates – There is no use of a reliable gateway if it doesn’t offer you a good package that suits your needs. The advantage here is that with the growing number of players in this field now the packages available are actually quite competitive from a customer’s point of view.

  • Diversity – A payment gateway needs to be diverse. By diversity I mean that it should offer a large number of medias for payment that a customer can choose from.

So let’s see some of these payment gateways that we have been talking about above.

Not in order of preference

  1. CCAvenue:  It is one of the largest payment gateways operating in India. It offers more than 100 payment options and collects funds in over 27 different currencies. It also allows users to extensively customize their payment page and thus helps create a more engaging environment for the end user. It allows a quick mode of retry in case the initial payment fails and thus increases the chances that a customer would opt for a retry rather than just leave the page in case of a transaction gone bad. CCAvenue has a well integrated real time check up and analytic system that keeps tap on every transaction especially the ones that go bad, sending the website a detail as to exactly why the transaction failed thus helping in improving the system, all this along with its round the clock customer support, something that no other Indian payment gateway provides. It offers T+2 Payment Settlement.You will find most of the big online companies using this.
  2. Citrus: Citrus as in the same citrus behind the cool and innovative Citrus pay app to tackle the everyday problem of ‘chuta nahin hai’. Well most of you must have heard of the app but did you know that it was the brainchild of CitrusPay, a leading payment gateway in India. Its customers are on a whole quite pleased with its services as it offers one of the best success rates in the industry. Citrus is technologically quite advanced and sound. It also allows a whole range of tools for the end consumers that help in making the shopping experience more fun.
  3. Atom: With a client base of over 4500 companies and more than 100 payment options, Atom is not really an atom in the field of Payment gateway, it is actually quite a major player in India. Its services includes over 5 credit cards including MasterCard, American Express, etc, 50+ Debit Cards options and over 50 net banking options all of which have together made it boast of its 15 million plus transactions to date. It caters to a large variety of industries, however their major client base comprises of education, government services and travel and tourism.
  4. DirecPay: It offers a very diverse product line allowing customers to access through internet and IVRS. They also work closely with agencies to optimize SEO and PPC advertising for their customer websites.  Other unique features include dropped transaction tracking, automated reconciliation, real time MIS and on demand analysis & reporting tools. DirecPay with its affordable plans and products is a good prospect for a large number of online businesses as it allows them to focus on sales and leave the payment part on them.
  5. PayPal: The global leader and pioneer in the field of payment gateways. PayPal used to be a favorite in India due to its ease of setting up. However, a couple of years back, banking regulations drastically reduced its footprint. An Indian company cannot accept Indian credit cards via Paypal, but can accept foreign credit cards. In India it is mostly used for payment across the borders in different currencies. At the time of writing it was still owned by the online mega giant eBay and although the two do look towards a split up, PayPal continues to be a global leader in for online payment companies. It allows you to send money not just to companies it works for but also to anyone with a PayPal account, anywhere around the globe. Although it is a little bit more expensive than the other Payment gateways mentioned in this article it has to be noted that it is also one of the most well established companies in its field globally.
  6. EMVANTAGE: EMVANTAGE boasts of a very high transaction success rates, one of the highest in India. It offers users to choose from a wide variety of payment options and also lets them use prepaid cards like Rupay, etc. High security and its user friendly interface add to its aura. It also allows merchants to sell through SoMe(Social Media), converting the like button on facebook to a buy button. Apart from that it offers T+2 settlement policy and EMIs across 10 banks.
  7. PayU: Another gateway with a very fascinating transaction success rates; however in the case of PayU the biggest advantage is that it allows you to go live quite fast and at very affordable prices. A part of the huge Naspers Group that recently acquired Redbus, PayU offers features such as iFrame solution for secure collection of card data, 1 Click checkout, Payment analytics, IVR payments and Email Invoicing. PayU also runs a second facility called PayU money which offers end users upto 10% instant cash back when they pay using it on over 8500 sites around the net.
  8. Zaakpay:  It offers both web and mobile payment options and lets its customers choose their plans depending on the expected volume per month. It offers a unique T+1 settlement clearing process and boasts of having powered over a billion rupee transaction to date. Its mobile version allows customers to collect in app payment in android and iOS at an absolute zero installation fee.

Listed below is a table comparing the prices of various gateways listed above. Atom has been left out due to lack of information and PayPal is an international service making it quite difficult to grade them in terms of other Indian payment gateways.

CCAvenue Citrus Atom DirecPay PayPal EMVANTAGE PayU Zaakpay
Set up fee 0-40,000 0 0-30,000 0-25000 6,000-36,000 10,000-30,000
Maximum TDR 5.50% 2.75% 5% 4.90% 4.90% 3%
Annual Maintenance Fee 1200-3600 0 2400 Plan dependent 2400 0
Lowest TDR for Credit Cards 2.5 2% 2% 2.25% 2.75% 2.25%
Lowest TDR for Debit cards 1.5 1% 1.25% 1.25% 0.75% 2.25%
Lowest TDR for net banking 2.5 1.6% 2% 2.25% 2.75% N/A
Lowest TDR for Cash cards 3.6 0 N/A 2.9% 3% N/A

Poll in the next page.

Comments

  • June 21, 2014

    hI Harshit,

    thanks for an excellent article. Can u pls also let us know about the indian gateways which accept payments globally.

    many thanks,

    Tarun

    reply
    • November 5, 2014

      Hi tarun you can check with Asiapay which accepts payments globally.

      For more info mail me on [email protected]
      Mob : 9022539872

      reply
  • August 21, 2014

    Dear All,

    Please contact us for requirement of online Payment Gateway Service from HSBC- Global Payments.

    Regards
    Shohrat Karimi
    Mob: 09372455483/09594956039

    reply
    • Vikas pathak

      September 1, 2015

      Dear Sir/madam
      I am Vikas Kumar pathak. I am working in digital payment gateway company(Transerv pvt ltd) as a sales manager from 1 yrs.if you have vacancy for sale managers plz contact me .my no.9867907834.

      Thanks & Regards
      Vikas pathak
      9867907834

      reply
  • September 2, 2014

    Quite an impressive post!!! The Online Payment Gateway services provided by Emvantage.com are secure, advanced and efficient.

    reply
    • December 3, 2014

      My dear Rutuparna _- EMvantage.com is fake gateway . ITS employ is chor , paise lete h gateway dilwane ke nam se . MARKET ME DATA BECHTE H . customer ki details share karte h
      TDR to 13 % lete h chor h emvantage chor h chor .

      reply
      • Rajnish K.

        May 31, 2015

        You may be frustrated due to Emv did not allow to do fraud transaction on your website. Please check at your end first before allegation to anyone. I have got PG from this co. and I am quite satisfied with the services given by them.

        reply
  • Ronchi

    September 18, 2014

    Can u tell me please how to use atom getaway in ASP.NET ?

    reply
  • September 22, 2014

    Please contact us for requirement of online Payment Gateway Service from iWay Pay Empowering ePayments. & direct mail to [email protected]

    reply
  • Afzal

    September 23, 2014

    The worst payment gateway, First of all i waited for 40 days for the CC/D cards to get activated, they told me that it is activated but i was not able to receive payments through CC/D cards. They gave me the reason that UGI gateway is not working properly on my site and they will install SBI gateway, they asked me to wait another 45 days. There customer service some where in chennai is pathetic, they don’t know what is happening just gives false info that they will resolve within 24 hours, which never happened and they try to speak with false accent as if they r in some foreign country. After 45 days of waiting at last they are saying that now UGI gateway is working fine on your website and no need of SBI gateway. I feel like i have been cheated and robbed. When I try to contact the person to whom I gave Rs. 30,000 as the set up fee, I m getting answers that the person left the job. I am really frustrated. I will advice guys not to try this worst service.

    reply
  • Afzal

    September 23, 2014

    My above comment is for EBS

    reply
  • October 13, 2014

    Hi tarun,
    Check out http://www.indiapay.com
    IndiaPay provides Domestic and International payment gateway service which helps merchants accept payments securely and efficiently on website, mobile, IVR and devices without transaction loss.

    reply
    • heera ballabh

      July 21, 2015

      need a IVR .

      reply
  • Pramod Sahu

    October 14, 2014

    Great, very helpful information. Thanks

    reply
  • October 31, 2014

    Paytm, a brand of One97 communications was incubated in One97 with a simple and honest mission: To offer a simple, safe and delightful experience for online recharge and online payments.

    Paytm Wallet :- We are India’s BIGGEST consumer wallet platform today both in terms of SCALE as well as USABILITY. Paytm wallet is an additional payment option available to merchants and it comes with massive set of numbers (more than 1.5 crore with 60 lakhs saved cards and more than Rs 20 crore of consumer money deposited with us). Paytm as a growth engine continues to be a platform for not only acquiring new wallet consumers (about 25k a day) but also ensuring that they transact regularly (4 txns/wallet customer/month).

    Paytm Deals – Marketing Services – Paytm’s e-commerce site (www.paytm.com) receives around 6,00,000 successful transactions and about 10,00,000 + visitors daily. 60% of successful transactions are mobile transactions. All the users recharging through Paytm have an option of subscribing a coupon provided by various merchants across the e-commerce spectrum in India. Paytm offers TT TEXTILES to display the coupons on a fixed plus variable cost model where there is a setup fee and a per coupon redemption charge collected from the merchant. This includes a huge a amount of brand visibility and Marketing.

    We have a backend analysis team, doing a whole lot of analysis backend. The analysis include number of coupons downloaded hourly basis, Regions from where the download happens and what type of offers work best.

    What we can do for you ?
    • Promote and create a buzz of offers/deals/discounts through our website, Facebook and Twitter.
    • We will promote Mobile APP and WAP specific coupons to increase the downloads.
    • At a time 2 different coupon can display on Mobile APP and Web also.
    • We offer you superior market reach and penetration in premium transacting audience category
    • Helps you to increase your brand visibility to a huge amount
    • We can direct customer coming to our website to avail your offer.
    • Helps you to acquire more customers.

    Please find attached Paytm wallet commercial proposal for your ref. and feel free to call on below mentioned no. in case of any clarification required.

    Regards,
    Charan J
    9828 999 663, 9818 490 901

    reply
  • Balasubramanian

    November 24, 2014

    Hi,
    I am looking for payment gateway for my upcoming eCommerce portal. My requirements are:
    1. Security
    2. Transaction Success Rate
    3. Interest Rate and 0 interest rate for Net banking solutions
    4. Lesser Setup Fee.
    Can any one suggest the best solution?

    reply
    • Deepak

      March 13, 2015

      Hi,

      A bit late, but if you found the right payment gateway for your platform – do share your experiences for the benefit of everyone.

      Thanks,
      Deepak

      reply
    • bhavin

      April 2, 2015

      Hi,

      I am also looking for a payment gateway. Can you suggest me please ? Also which one are you using ?

      reply
      • Rajesh K verman

        May 31, 2015

        Plz share your no. on given mail id to take this discussion forward. will suggest you best Payment gateway solution provider.

        reply
    • Juspay

      July 8, 2015

      We are a payment solutions provider. Please contact us at [email protected]. Please refer to our website juspay.in. We provide a wrapper on top of payment gateway and andriod apps to increase the success rates.

      reply
  • Jagprit Batra

    December 9, 2014

    I am looking out for a payment gateway which I can integrate into my native IOS App
    I wish the publish my app on Appstore so please guide me accordingly

    Thanks in advance

    reply
    • Deepak

      March 13, 2015

      Hi Jagprit,

      Did you find the right payment gateway for your mobile app? – do share your experiences for the benefit of everyone.

      Thanks,
      Deepak

      reply
  • gowtham

    December 10, 2014

    help me friends !… i will going starts a small eCommerce website, it contains only books. so which payment gate way best for my business.

    reply
    • Deepak

      March 13, 2015

      Hi,

      A bit late, but if you found the right payment gateway for your platform – do share your experiences for the benefit of everyone.

      Thanks,
      Deepak

      reply
  • December 26, 2014

    I know how difficult it is to select a reliable payment gateway for an online business. I have used different platforms but I have to say that Atom is clearly the best. Recommended!

    reply
  • Gina

    January 21, 2015

    Thanks for this post! I agree with the idea that sometimes smaller payment gateways offer really convenient features and good conditions for business. In my case this was the determinant for choosing the payment gateway. I am using Paysera payments. Wen I started they were only available in Europe, but now they are expanding to Indian market. It will be another worthy option.

    reply
  • January 28, 2015

    This was very useful post. There are so many new comers providing these services.
    Check out iEPayments

    reply
  • Gupta

    February 16, 2015

    Hi, someone pls let me know if any Indian gateway(s) which accept payments globally.

    reply
    • virns

      April 21, 2015

      Hi All,

      Please contact http://www.asiapay.com for your requirement of online Payment Gateway Service.
      AsiaPay, a premier electronic payment solution and technology vendor and payment service provider, strives to bring advanced, secured, integrated, and cost-effective electronic payment processing solutions and services to banks and e-businesses in the worldwide market, covering international credit card, debit card and other prepaid card payments.

      Contact us at Mob. no 097620 68944 or email id – [email protected]

      reply
  • Divya

    March 10, 2015

    And another growing and fastest Payment Gateway is http://www.paywithpaytm.com/.

    reply
  • March 12, 2015

    We are also an start up in india. right now we use payu , and satisfied but the rate of abandon carts increases.

    reply
    • Deepak

      March 13, 2015

      Hi,

      Please share a bit more detail about your experience with PayU – that would benefit everyone since PayU seems to be one of the more popular choices these days.

      Thanks,
      Deepak

      reply
  • pronoy

    March 16, 2015

    Hi Harshit,
    Thats a good piece of comparison. But it doesn’t say about charge back period. For paypal someone said its 180 days. How about others.

    reply
  • Shohrat Karimi

    March 31, 2015

    Dear All,

    Please contact us for requirement of online Payment Gateway Service from HSBC- Global Payments.

    Regards
    Shohrat Karimi
    Mob: 09372455483/09594956039

    reply
  • Umesh Raichur

    April 3, 2015

    Dear Harshit,

    I am happy to read your post because of not just ‘what’ it is, but more so because of ‘why’ it is. Keep up the nice work. And yes, your post did help me come closer to deciding a PG for my start-up.

    Best,
    Umesh

    reply
    • Deepak

      April 4, 2015

      Do let us know on which one you decided and the reasons for the benefit of other readers. Thanks.

      reply
  • chandan

    April 22, 2015

    I looking for a new payment gateway so please if you have any option inform to me urgent

    reply
    • virns

      May 7, 2015

      Hi Chandan,

      you can check with Asiapay which accepts payments globally.
      For more info mail me on [email protected]
      Mob : 022 2826 6993

      reply
  • April 29, 2015

    Evantage gateway is the fake payment gateway jo logo se pase leke payment gateway ni date phr kisi galti ke karna gateway band kar dete hee evantage is fake apyment gateway

    reply
  • poojasri y

    May 8, 2015

    i need a payment getway globaly option urgent requirment .

    reply
    • virns

      May 14, 2015

      you can check with Asiapay which accepts payments globally.
      contact Arti – 022 2826 6993

      reply
  • Subhash

    June 14, 2015

    very nice and informative article.

    reply
  • Priyanka

    June 27, 2015

    Hello,

    I am going to start a small ecommerce site for local business in india.
    Please suggest low transaction fee and reliable payment gateway for my website.
    Or please also let me know if any other option than payment gateway.

    Thanks
    Priyanka

    reply
  • Gaurav

    June 28, 2015

    How is instamojo. It’s charges are comparatively very less. Need to confirm it’s authenticity.

    rgds
    Gaurav

    reply
  • Shantanu

    July 2, 2015

    Hii Folks,

    There is new Payment Gateway company in the market i.e Shmart.in with wonderful features and. Also gives the Best rate in Industry. further contact 022-61307000 Ext – 266

    reply
  • chandan singh chauhaan

    July 3, 2015

    i need to know that which payment gateway is merchant friendly gateway

    reply
    • Tarun

      July 8, 2015

      Dear All,
      Please contact us for requirement of online Payment Gateway Service from Worldline India Payment Gateway

      It has many merchant friendly features like- Real Time transaction tracking through Mobile app, Email invoicing – so as to send a payment link to your prospective clients, Multibank EMI & so on..

      Regards
      Tarun
      Mob: 09167355326

      reply
  • Surender Kumar

    July 29, 2015

    Hi All,

    I write about payments technologies and gateways. Here is some really cool stuff about increasing transaction success rate of payment gateways. Here you go… http://surenderpayments.blogspot.in/2015/07/smart-payment-page-improve-transaction-success-rate.html

    Surender

    reply
  • Shivdeep Roy

    August 14, 2015

    I’m looking for a payment gateway with maximum payment option and success rate with minimum setup and TDR rate for my website and mobile application.

    reply
  • Ravi Banerjee

    September 29, 2015

    Hello Friends!
    I was really glad to see that all the payment gateways which are provided here are such a great options available for payment gateway to integrate in various online websites.

    reply
  • basubabu

    October 5, 2015

    hello everyone,
    I want to start a basic ecommerce portal from home.it will be a drop shipping model.I am confused about the documents needed for the payment gateway.can any one help me regarding this?

    reply
    • Deepak

      October 5, 2015

      Hi, you would have to contact the individual payment gateways because each of them would have slightly different requirements. Broadly, they will ask for company docs (MoA, Shareholders, Bank Statements, Address Proof, Photographs, Terms & Conditions clearly mentioned on website etc)

      reply
  • Bhanu

    October 7, 2015

    CcAvenue vs Citrus…which will be better…if anyone has used either please let me know..

    reply
  • Jatin

    October 13, 2015

    JusPay.in
    What is its fee charge / pricing?
    Please let me know…

    reply
  • Rajen Wagle

    November 9, 2015

    Looking for a payment gateway to integrate with our Ecomm App and ERP application.

    Which of the following work out to be cost effective and with least no of drops.
    1. CC Avenue
    2. Citrus
    3. Payu
    4. Direcpay
    others

    reply
  • December 14, 2015

    Citrus has an Annual maintenance cost upto Rs4000\-. You have given wrong info. Please check it before you post it.

    reply
  • Akshay

    June 7, 2017

    Hi All,

    I am Akshay, and I am a business man. I am using Ezstrax.com for my business and I am very happy and satisfied with their service and pricing. I tried Razorpay and Instamojo before this but they said they will settle my money in T+3. I also used PayU, CCAvenue and Atom they all fall in the same no service zone. These big companies have no customer service. We have to keep calling them and push them to do work. So on what basis are you one of the best payment gateways? In India no one is bothered about the customer service. It took me so long just for these payment gateways to start my business. I am so sick and tired. I’m sure Ezstrax will be a very good competition to these companies. Even if someone offers me better pricing than them I will not change because for me service is what matters a lot. I am doing business and I can’t be wasting my time behind you for every single thing.

    Also, in PayTM me and also many people in and out of my network have lost so much money and I still don’t understand how is it still operating in India. Probably just because of the funding.

    reply

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