A payment gateway lets customers pay on your website with UPI, cards, net banking and wallets, and moves the money to your bank account. Razorpay, PhonePe Payment Gateway and Cashfree are three of the most popular choices for Indian small businesses. They are all reliable; the differences are in fees, settlement speed, onboarding and extra features. Here is how to choose.
What every gateway needs from you
- A current account or a savings account in the business owner's name, depending on the gateway and business type.
- KYC documents: PAN, GST certificate if you have one, address proof and business registration.
- A live website with clear contact details, terms and conditions, privacy policy, refund and cancellation policy, and shipping or delivery policy. Gateways check these before approval, so add them before you apply.
Fees: what to compare
Gateways charge a percentage per transaction that differs by payment method. UPI is usually the cheapest method, and cards, international cards and EMI cost more. Fees change often and are sometimes negotiable for higher volumes, so compare the current pricing page of each gateway for the methods your customers use most. Also check whether there is a setup fee or annual fee (most small-business plans have none) and whether GST applies on the fee.
Razorpay
- Widely used, with plugins for OpenCart, WooCommerce, Shopify and most other platforms.
- Useful extras: payment links, payment pages, subscriptions, and invoices you can send on WhatsApp.
- A good default choice if you want one account that covers many use cases.
PhonePe Payment Gateway
- A familiar name for customers who already use PhonePe for UPI.
- Focused on a smooth UPI experience, with cards and net banking also supported.
- Worth comparing if most of your customers pay by UPI.
Cashfree
- Known for payouts and fast settlement options in addition to collecting payments.
- Useful if you also need to send money out, for example refunds, vendor payouts or marketplace settlements.
- Plugins are available for the common e-commerce platforms.
Settlement and refunds
Standard settlement to your bank usually takes one to a few working days; instant or same-day settlement is often available for an extra fee. Check how refunds work from your dashboard, and whether partial refunds are supported if you sell items that customers may return one at a time.
Our advice
- Start with one gateway. Add a second one only if you have a clear reason, such as a backup during outages or lower fees on a particular method.
- Test the full journey: pay, receive the order confirmation, issue a refund.
- Show the UPI option first on mobile. Most Indian customers expect it.
Frequently asked questions
Can I accept UPI without a payment gateway?
You can show a UPI QR code, but you then have to match payments to orders by hand. A gateway confirms each payment automatically and updates the order, which saves time and avoids mistakes.
Do I need GST registration to use a payment gateway?
Not always. Some gateways onboard small businesses without GST using PAN and other documents. If your turnover or type of business requires GST, register first.
How long does gateway approval take?
Often a few working days once your documents and website policies are in order. Missing policy pages are the most common reason for delays.
Want payments set up correctly the first time?
NPD Softwares connects Razorpay, PhonePe PG, Cashfree and other gateways to OpenCart, WooCommerce and custom websites, and adds the policy pages gateways ask for. See our work.