An e-commerce website needs two things to function properly which are good website design and a payment gateway.
A payment gateway is a middleman that handles all your payments. The payment gateway will accept the details provided by the customer, process them, and then further transfer the fund from the customer’s bank account to your bank account.
For this service, the payment gateway charges a certain percentage of the transaction generally 2-3% and the rest of the amount gets transferred to your account.
There are a lot of payment gateways in India that you can use for your website. it can be a little challenging to decide which payment gateway to go with. So, here is the complete guide on the 10 best payment gateway in India 2024.
But, before diving into the list, let’s find out how a payment gateway works.
How does a Payment Gateway work?
Payment gateway work as a middleman between a customer and the merchant. During the payment process, the following parties play a crucial role-
- Customer’s Bank Account
- Merchant’s Bank Account
- Payment gateway
All these parties play their part to complete the transaction. First, when the customer enters his/her bank details in the payment interface, the payment gateway will process the data and send details to the customer’s bank to check whether the amount is present or not.
After that, the bank sends the amount to the merchant bank account and sends details to the payment gateway. The payment gateway then verifies the details from the merchant bank and displays the success status on the screen of the customer.
This entire process takes only a few seconds and the payment is transferred from the customer to the bank.
Things to consider before selecting a Payment Gateway
Now, that we have understood how a payment gateway work, we have to find the things which have to be considered before selecting a payment gateway for our e-commerce website.
Payment Options
There are several payment options that a payment gateway provides to the customer like UPI, Net banking, Credit/debit card, etc.
You should choose a payment gateway that provides you with the maximum payment option to ensure that your customer gets a wide range of option to choose from and provide convenience to them.
Security
The payment gateway should be secure and should keep the data safe. It should have a track record of no data breaches in the past.
The data that the payment gateway handles are the financial details of your customer which becomes crucial for you to keep safe otherwise, your customers might lose faith in your business.
Transaction Fees
The transaction fee is the fee that the payment gateway charges for the service it is providing to the individuals. The transaction fees should be low and with no hidden charges.
Availability
Whichever region you are serving, you’ll have to ensure that the payment gateway is available there. Let’s say you want to do business in the USA, then your payment gateway should have access to that region for the payment to the successful.
User Experience
User experience is also important for you to ensure that the customer does not feel stuck when making payments. So, the payment gateway interface should be tested before deciding on a payment gateway for your eCommerce website.
Report and Analysis
The payment gateway should provide you with a proper report on all the transactions that took place on your website.
Top 10 Payment Gateway in India 2024
The following are the 10 best payment gateways in India 2024 that you can opt for your eCommerce website-
PAYTM
PAYTM is one of the most famous and with the highest number of users in India. Apart from the famous app-based B2C solution, PAYTM also provides B2B payment solutions to users.
PAYTM has a house banking infrastructure that helps them to make faster payments and with a seamless payment user interface, you can provide your customer with an amazing experience.
PAYTM has the greatest exposure with the highest customer base in the entire list, providing the PAYTM payment gateway helps you in providing your customer with a familiar payment solution that they trust.
Razorpay
Razorpay is an industry-leading success rate that a superior checkout experience for your customer. The user experience is amazing and simple to use with many payment options for your customers.
It is easy to integrate and provide insightful reporting and analysis of your payment. The transaction fee charged by Razorpay is 2% for all payments and 3% for credit card payments.
Bill Desk
Bill Desk is a payment solution company providing payment solutions to many businesses and government organizations for digital transactions.
You can rely on the security that this payment gateway provides. It is also one of the oldest payment solutions companies in the industry.
You’ll get various payment options for your website that includes UPI, net banking, credit/debit card payments, etc. You can choose Bill Desk if you want to build trust and security for your customer.
PayU
PayU is a payment gateway provider that provides a pay-as-you-use option where there are no setup fees or annual fees for using their service but they will charge you per transaction fee.
You will be charged 2% for Visa, Mastercard, Net Banking, BNPL, and Wallets or 3% for credit card and EMI payment options.
It is a great option for a start-up of a medium to a small business that needs a payment solution. With over 150+ payment modes both domestic and international payments, PayU offers an amazing experience to the user.
CCAvenue
Another old folk here CCAvenue is a market-leading payment solutions company that was in the industry for years.
They offer secure and reliable payment solutions that help you collect payments from your client easily and fast.
It is also India’s first payment gateway that accepts the Digital rupee for transaction making is an amazing option for millennials who keep their funds mostly in digital formats.
JusPay
JusPay offers an end to end-payment solutions to e-commerce websites and platform apps. The payment option provided by JusPay is limitless wherein UPI, Net Banking, Credit card, EMI payments, etc. all can be provided as an option for your customers.
The best part about using JusPay is the speed at which operated and it also has one of the best user interfaces.
ePaisa
ePaisa is a complete eCommerce solution for eCommerce platforms. ePaisa acts as a POS, inventory management, payment solutions, etc., and offers an amazing experience to both Businesses and customers.
There is a setup fee as well as a transaction fee which is involved in using the ePaisa. It accepts multiple payment options like credit card payments, wallet payments, online payments, and bitcoin payments.
Instamojo
Instamojo is different than other payment gateway providers as Instamojo offers complete eCommerce store service.
In Instamojo, you can make your eCommerce store with complete payment solutions and shipping integration, etc.
The best part about Instamojo is that is free to get started and as you grow you can upgrade your plan easily.
This is extremely good for startups as It saves you a lot of cost of web development, payment gateway setup, etc. which in return helps you in creating your revenue and setup costs for business.
PayPal
If you have international customers then PayPal is the best option for you to accept payments. PayPal provides transaction services to over 200 countries and regions with handles 25 major currencies across the world.
You can opt for PayPal as a payment solution if you want seamless and faster international payments for your business.
IppoPay
IppoPay provides payment solutions to small and medium businesses with attractive pricing of 1.9% for any transaction. It is one of the cheapest payment solutions for your business.
IppoPay targets customers from Tier-2 and Tier-3 to help retail stores and online businesses to expand their business without burning a lot of cash on the payment solution.
IppoPay accepts a huge variety of payment options like PAYTM, PhonePe, Google Pay, BHIM, and 150+ other UPI apps.
Which One to Choose?
There is a huge variety of Payment gateway in the market to choose from. you’ll have to evaluate which one best suits your business. If you are a startup then you can go for Instamojo as it is a complete eCommerce solution.
If you have an eCommerce website and just want payment solutions then you can go for PAYTM or RazorPay. Apart from these, if you have an international audience and want to receive payments from them then you can opt for PAYPAL which helps you in accepting multiple currencies.
In general, you’ll have to ensure that the transaction fee is low with no or low setup cost and easy integration with good UI for easy transactions. If your choice meets all these criteria then you can definitely go with that Payment Gateway.
