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A Review of Major Payment Gateways in India

Last Updated: December 2013

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There are tons of reviews on Indian payment Gateways; So what prompted us to write one more? Because we feel that many of the old reviews have become less relevant over a period of time and are just an overdose for the first timers. So we wanted to prepare a dummies guide after a personal experience with all major providers.

If you sell something on the internet, you need to have a payment gateway to collect money from your customers. Your payment gateway account enables you to accept payments by credit/debit cards, net-banking & cash cards. So what all options do we have here in India? Just a handful of them and sadly, none of them lives up to the expectations of a merchant.

India is the land of hassles, hassle to get a gas connection, hassle to get a bill passed – and so is getting a payment gateway A/c :) I have personally applied for a payment gateway a/c thrice from 2009 to 2012. Since January, 2012, we have closely worked with quite a lot of payment gateway service providers & have till date facilitated payment gateway accounts for about a hundred customers here @ Zepo. During this period, I’ve communicated with almost all payment gateway providers. Therefore, i thought to write a short review of each option which is worth considering for you

Here is the list of parameters which are important for you to consider while selecting a payment gateway

1. The cost of a payment gateway

Most of the players require us to pay ‘Set-up fee’. (which ranges from 5000 to 50,000) And then they charge you a % on every transaction that happens over your e-commerce website (This is called TDR and ranges from 2.5% to 7%). TDR & set-up fee are inversely proportional to each other. They all offer multiple plans starting with low set-up fee+high TDR & others with high set-up fee+low TDR. In addition to TDR & set-up fee, they also charge you yearly Annual Maintenance Charges (AMC) which range from Rs. 1200/year to Rs. 3600/year.

2. The service & attitude

Opening a Payment gateway a/c is just like a bank a/c. It is necessary to have a good relation with the service provider. And that is possible only if the service provider provides good service. From ensuring least hassle in opening the a/c to smooth operations later on; they should be accommodating and act reasonable with an understanding attitude. Well, i guess that would be too much to ask :)

3. User-interface of Payment Page

This is the only tangible element of a payment gateway provider service. And YOUR customers have to interact with this page to make the payment to you. So before you sign-up with anyone, make sure they have a good & simple-to-use payment page.

4. Other Basic things

There are other important basic things which even though are taken for granted, should be cross-checked with the provider that you are considering. For example – Multiple Payment Options, Stringent Fraud Check Processes, High Uptime, Reliable company / service provider, Sandbox environment, integration API,

Once you figure out the right payment gateway provider & plan for you, half the battle is won :) Then starts the real hassle to complete the loads of required paperwork. If performed at best possible speed, it shall take about 5-10 days to complete all formalities & get a payment gateway a/c. But its doesn’t end there yet! Initially, they allot you 2-3 options to collect payment & all other main options (like VISA & MASTERCARD) are activated later & may take up to a month.

So all of you planning to accept online payment on your ecommerce websites, you better start well in advance (at least 30-45 days before you actually want to start accepting it). I am not pointing-out at any provider or the lack of service. I strongly believe that everyone is doing their best they can in the given conditions & stipulations laid down by RBI.

So now I will list all providers & simply rate them on the above 4 parameters (based out of personal experience & little research). Please note: Paypal is very restricted in India (thanks to RBI regulations) and thus does not come into consideration for any etailer who wants to sell in India. So here are the options worth consideration:

Plans starting from: 

Set-up fee: Rs. 0

TDR%: Credit Cards – 5.5% || Debit Cards – 1.25% || Net Banking – 4%

AMC: Rs. 1200

Can be negotiated up to:AMC – Rs. 1200

Service: 7/10

User-interface: 6/10

Basic things: 8/10

More:  The biggest 3rd party player in India. Offers a little more payment options as compared to other players in the market. But then comes the arrogance with success. monopolistic attitude :) Late responses for inquiries. Does not negotiate (at least with small players). 

Plans starting from: Set-up fee - Rs. 12000 || 5% TDR || AMC – Rs. 3600

Can be negotiated up to || Set-up fee – Rs. 4000 || 5% TDR || AMC – Rs. 2400

Service: 8/10

User-interface: 8/10

Basic things: 8/10

More: One of the good ones among the whole lot, as far as service is concerned. They are pretty accommodating & act reasonable. It has the good UI when compared to others. Competent rates. They are now my 2nd preference because lately their service levels have been falling

Plans starting from

Set-up fee: Rs. 6000

TDR%: Credit Cards – 4.9% || Debit Cards – 1.25% || Net Banking – 4.9%

AMC: Rs. 2400

Can be negotiated up to || Set-up fee- Rs. 4000 || AMC – Rs. 2400

Service: 8/10

User-interface: 8.5/10

Basic things: 9/10

More: Relatively new entrant in the market & have actually come up with some good features. Currently offering the lowest TDR in the market. Already being used by biggies like Jabong, SnapDeal, BookMyShow and Ferns and Petals. Seems to be more customer friendly than others :) They have definitely maintained their customer service levels, even as they have grown. The USP of this payment gateway is the good practices which they claim results in 12% better conversions.

Overall, with 1 % savings in the form of TDR + better conversion rates, at this moment I would pick PayU as a recommendation. After all, in e-commerce every % matters :)

PS. Zepo offers a free PayU payment gateway with every account. You can read more about it here.

Plans starting from || Set-up fee- Rs. 7500 || 6.5% TDR || AMC-Rs. 2400

Can be negotiated up to || Set-up fee- Rs. 5000 || 6.5% TDR || AMC-Rs. 2400

Service: 7/10

User-interface: 7/10

Basic things: 8/10

More: A reliable company and a part of Times Group. Decent UI. Responsive. For me, they can be counted as an option after EBS.

Plans starting from || Set-up fee- Rs. 15000 || 4% TDR || AMC- Rs. 3000

Service: 7/10

User-interface: 8.5/10

Basic things: 7/10

More:  IIt is a relatively new player in the market but is making doing good as far as their platform and services are concerned. They have one of the best user interfaces around, for a payment gateway. As of now, they are powering major online sites like Snapdeal, Homeshop18, ITC Hotels, Dishtv, PVR, Bagittoday.com. Considering the are still very new, the processing of all applications may take a few more days than usual.

There are other reliable one’s like Billdesk.com which have really high charges but offers the widest payment options.

And then, there are other companies which we are still not sure of like ipayin.com, transecute.com, ABCpayments.comBillBharo.com,

To know more about the things worth considering before you finalize your payment gateway provider, check out this wonderful article by Santosh Panda, Founder of Ayojak & another wonderful article on 10 Things You Need to Know Before Signing up with a Payment Gateway in India

Update:

All these payment gateway providers support net banking. Although the number of banks they support differ. So, we are including a comparison list of all the 5 payment gateway providers mentioned above and the net banking options available with each.

CCAvenue, by far, supports the maximum number of banks. Whereas, EBS, PayTM and PayU, more or less, support the same number of banks.

(For a larger image, open image in a new tab)

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P.S.

1. Above, we have listed only 3rd Party payment gateway service providers. As we think that for start-ups just venturing out to sell online for the first time, direct banks are out of the consideration set due to high set-up fees & more complex formalities. (which include the likes of ICICI, HDFC)

2. We also give an Indian payment gateway for free with every Zepo account.

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Tanya Rao

Tanya Rao

Curious Growth Hacker @ Zepo. Traveller. Foodie. Cider Lover. Social Media Enthusiast. Audiophile at the Cellular Level. Start-up Kid. Sarcasm is First Language. Madness Personified. Love Mondays.

  • http://zepo.in/ Zepo

    Hi Amod,

    Thanks for the update. Will look into them.

  • Amod

    I suggest to better check AsiaPay very well renowned in South East asia now in India…the transaction success ratio is really cool…

  • http://zepo.in/ Zepo

    Hi Mehul,

    Yes, you are correct RBI does not allow auto debit from Credit card / Debit card and there has to be 2 stage authentication for all the online payments. Hence, it will not be possible to get a payment gateway for the recurring payment facility.

    You can sign up for International processors, however, it would not be easy process.Plus these merchants they have their own restriction e.g 2checkout minimum payout is $300

    Payment gateway approvals for digital downloads can be considered on special case to case basis.

    PayU Money and CCAvenue allows the individuals to have payment gateway under their name, even if they don’t have registered business. Since the payment gateway is given under Individuals name hence their name appears on the final payment page.

    It does effect the professional impression to some extent, however it totally depends upon the business owner as how he is providing services to his customers. There are many people who are using PayU Money and CCAvenue PG under individual’s name and are doing good business.

    If the PG is taken under individuals name, then we cannot show the billing name under any other name.
    You can bundle the subscription of the downloads and have the pricing for annual payments mentioned as basic price of the product.

    Hope this helps. Do let us know if we can help you with anything more.

  • Mehul

    I’m looking at recurring subscription services – however, I understand that none of the Indian Payment Gateways will allow that due to RBI’s guidelines of two stage authentication.

    Only International Processors like 2Checkout or Authorize.net, Plimus or Stripe may be able to process that – having said that, it may be difficult for Indian Merchants to sign up on most of them.

    Second hurdle is – Our Focus of Business is Digital Downloads and Online Tutorials which may not be accepted by Pay U and also a few others mentioned in your post.

    Lastly, even before we get a Business Entity Registered, we would like to open the transactions – Which Only Pay U will allow – NONE OTHERS WOULD… However, Pay U will not entertain the website name in the transaction and will mention the personal name of the owner (as per PAN & Banking Details) which does not give the Professional Impression..

    What I’d like is a payment processor who will accept an individual as a merchant, but while the customers are purchasing from the website the processor should treat the same name in the CC Billing and Invoicing wherever applicable and not the personal name of the seller. More so, the processor should have digital downloads and membership subscription fees as an option ( although they may not be able to do recurring – however a straight single shot annual payment should still be an available option)

    Having explained my dilemma, can I have suggestions as to which ones could we go along with ?

    Thnx.

  • http://zepo.in/ Zepo

    Hey Afzal,

    Sorry that you’ve had such a unfortunate experience with EBS. And thanks for writing a review about the same.

    Do let us know if we be can be of any help to you.

  • Afzal Khan

    The worst payment gateway EBS , 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.

  • Richard Macwan

    Quite old post, needs to be updated with fresh data.

    • http://zepo.in/ Zepo

      Hi Richard,

      Sure. We are looking at that. A little low on manpower but we’ll have the updated list up soon.

  • http://www.iamrob.in/ Robin Solanki

    You should also checkout Paymentz – Online Payment Gateway

  • http://zepo.in/ Zepo

    Hi Guru,

    We are sorry to hear you’ve had such a startling experience with EBS. They are the oldest operating payment gateway in India. Have you tried writing them an email or escalating the matter to seniors in the team/

  • Guru

    I am having worst experience with EBS. They seem to be fraud. Please be careful. I had some critical issue wanted to talk to one EBS representative in Bengaluru Steven, after even around 30 calls also no response. We are really worried now. Please be careful about EBS.

  • Nicole
  • NoMails

    Good inputs, Tanya. Need is slightly different. None of them are accepting payments on mobile apps natively. How will you compare Citrus – http://www.citruspay.com . They are offering native libraries for mobile payment

  • http://www.iamrob.in/ Robin Solanki

    I think you should have a look at http://www.paymentz.com too

  • http://zepo.in/ Zepo

    Hi Anand,

    Banks and payment gateway providers are wary of offering payment gateways to service providers. So, we wouldn’t be able to make the commitment for you. Instead, we advice you to approach banks for a payment gateway instead of the payment gateway provider.

    This just may be a smarter approach. Hope this helps. Do tell us about your experience dealing with other payment gateway providers.

  • anandkr

    Thanks. for keeping this post updated. Can you please help me out!

    Our is an upcoming video call application where we bring in domain experts & let people book a live video session with them(say for 30 min.). This isn’t a kind of marketplace because; experts are chosen selectively.
    I had talked with one representative of PayU but he told me that they cannot accept my application. The reason he gave was “This looks like paying for a consultation service, which banks don’t allow”.

    Can you recommend me the right payment gateway for us.

    • Nick

      Hi,

      Do you have any more information on this? I work for a mobile health company and we may face similar issues. It’s really hard to find any information on this online and I’m sure a lot of people would love to hear about your experience = )

  • kartheekb

    I think we can have a look at this also..

    https://www.payzippy.com/merchants

    using by flipkart

    ( Zero setup fee, first 6 months promotional fees , low compared to other. i dint look deeply how may banks they are providing.

    • http://zepo.in/ Zepo

      Hi Kartheek,

      Thanks for the suggestion. We’ll have a look at the same.

      • https://www.entrowallet.com/ Tatavarthi Sai Krishna

        Actually what the thing is happening flipkart is one of the most popular ecommerce website in india, Daily they will get tons of orders through online payment. Payment gateway charges TDR for transactions. To get less the TDR They have started there own payment gateway in the name of payzippy. There smarter ness exceeded and they providing PG to merchants who sale in online by starting there own website and taking more TDR from merchants. First i have my own Online Recharge Portal i contacted payzippy(flipkart one) and Zaakpay(Mobikwik) payzippy rejected me because they don’t need small business. Zaakpay rejected because they have there own recharge portal… and then i contacted payu first they are two late and i contacted CCAvenue they are very good in contacting

    • http://www.thecfguy.com/ Pritesh Patel

      Going out of business.. They already stop new subscription.

  • Swathi

    I have tried to open an account with PayUPaisa and didn’t have a very good experience with it. I think I should go with CCAvenue..

    • http://zepo.in/ Zepo

      Hi Swathi,

      Your feedback is much appreciated. Could you tell us what was not quite right with PayU Paisa? And why you are planning to go with CCAvenue?

      • https://www.entrowallet.com/ Tatavarthi Sai Krishna

        Payu and Payupaisa are fraud because they display one thing and they do one thing. CCAvenue is not like that they activated my zero account with in one day after providing my Basic Thing like KYC & Identity & Bank Verification letter. After providing they activated my account in 3hrs and send me the list of the documents what i have to provide.. All the things i have done slowly and submitted documents with in time…. that’s why i like CCAvenue, without charging Setup fee they gave me a good customer service, mean while i have asked silly question. They answered for those silly question quiet camly

  • Jayesh Ahire

    Best Payment Gateway is Zaakpay

  • Arun

    Vineet,

    I think you have the write solution because none of these company deals in high risk like tech support for International transaction.

    Wish you best of Luck for your business

  • Bipin Preet Singh

    You should include Zaakpay.com in your comparison.

    • http://zepo.in/ Zepo

      Hi Bipin,

      We’ll definitely consider it. And whenever we update the new post, will keep you in the loop.

      • Upasana Taku

        And when you do, dont forget to mention we have 52 netbanking banks :)

        • http://zepo.in/ Zepo

          Sure thing, Upasana! Will keep you updated too. Thanks for dropping by.

  • Indu

    It’s been a couple of years since this review was written. Could you give me a quick ‘top 5 gateways’?

    • http://zepo.in/ Zepo

      Hi Indu,

      Even though the post is pretty old, it’s constantly updated with new information. These 5 payment gateways remain the top 5 third party payment gateway providers in India, and are the most reliable. You can most certainly depend on the reviews written for each payment gateway.

  • Vineet

    I am confused after reading this post.
    I have a tech support business in India. Now days I am using a solution given by Arun from http://www.highriskgateway.in where I have to pay 10% which is too high for me.

    So can any one suggest me the better solution than http://www.highriskgateways.in for my tech support.

  • Vipin

    Hi,
    very informative update, i am applying for PAYU payment gateway for my website http://www.antiquebazaar.in

    Thanks alot

    • http://zepo.in/ Zepo

      Glad to hear that Vipin. All the best for your venture!

      • kathir

        sir can you do a review on payzippy and http://airpay.co.in ?

        • http://zepo.in/ Zepo

          Hi Kathir,

          A review on PayZippy is currently underway and you should have an update on the same by tomorrow. However, we take your suggestion for including Airpay too, and will keep you in the loop for when we do one.

          • Kathir

            Wow that’s really fast reply. Sir I own a hotel and i am planning to integrate a payment gateway for my hotel, can you suggest me a payment gateway ?

          • http://zepo.in/ Zepo

            Hi Kathir,

            Suggesting a payment gateway for you, would require us to know some of your requirements. Until then, we won’t really be in a position to help you close in on one. However, we can suggest you talk to your peers in the same industry and get an idea of who is using what. Then you can better decide which payment gateway will be better suited for your requirements.

          • kathir

            sir have you updated your review for payzippy?

    • Sunny

      How was your experience with PAYU… We use EBS for our website GiftsXpert.in

      • http://zepo.in/ Zepo

        Hi Sunny,

        Taking from our experience and the experience of our store owners, PayU has served them well. Its got a strong customer support team and is rapidly growing as a payment gateway.

        How has EBS served you so far?