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Ecommerce Websites: PayU Money Payment Gateway for Individuals and Non-Registered Businesses

Integrating payment gateways for e-commerce sites usually require a business to be a registered entity i.e. a sole proprietorship, a pvt. ltd., etc. But here is an option for you to sell online and start accepting online payments even without registering your business. How is that possible? Well, here’s the solution. PayU Money is essentially a payment gateway solution for individuals and the following is a review of the payment gateway.

Q.How do I accept online payments if my business is not registered?

A.  PayU Money is necessarily a savings account payment gateway for individuals. You can start receiving payments on your online store, even if your business is not registered. The only pre-requisite is, you should have a Savings Bank A/C. If all your documents are in order, you can start accepting online payments on your store in just 48 hours. But usually the entire process takes up to 20-25 days to complete.

Q. What is PayU Money?

PayU Money

A. PayU Money is a leading online payments solution company in India, which started operations in October 2011. And, since then it has grown into the fastest growing consumer payment processor in the online payment space. As of now, PayU Money boasts of having more than 1200 merchants on board.

Q. What documents are required to integrate PayU Money on the online store?

A. To integrate PayU Money on your online store, you only need to submit 3 documents, namely:

  1. Your Pan Card copy,
  2. KYC Document (Aadhar Card, Passport, Voter ID, Driver’s License), and
  3.  Bank Verification Letter or Cancelled Cheque  of Savings Bank Account

Q. What are the different charges levied with PayU Money PG?

A. There is absolutely no Setup fee or AMC levied with PayU Money. The only charge borne by you is the TDR% i.e. Transaction Discount Rate. Details of which are as follows:

Different Charges PayU Money Payment Gateway
Set-Up Fee 0
TDR% 2.9% + Service Tax (12.36% of TDR Value)


Q. How do these charges translate per transaction?

A. Given below are 2 examples to help you better understand the per transaction costs that will be borne by you.

Case A
Transaction Amount Rs. 100
TDR% 2.9%
Transaction cost Rs. 2.9
Case B
Transaction Amount Rs.200
TDR% 2.9%
Transaction cost Rs. 5.8


Q. Is the above transaction cost, inclusive of service tax?

A. No, the above costs are NOT INCLUSIVE of service tax.

So when service tax, i.e. 12.36% is levied on the above numbers, the transaction costs are:

Case A
Transaction Cost Rs. 2.9
Service Tax 12.36% = Rs. 0.35
Total Transaction Cost Rs. 2.9 + 0.35 = Rs. 3.25
Case B
Transaction Cost Rs. 5.8
Service Tax 12.36% = Rs. 0.71
Total Transaction Cost Rs. 5.8 + 0.71 = Rs. 6.51


Q. How long does it take the payment gateway to get activated?

A. If all your documents are in order, PayU Money offers immediate activation of the payment gateway i.e. within 48 hours of the PayU Money receiving the papers. But usually, the entire process takes 15-20 working days to complete.

Q. How does PayU Money work?

A. So here’s how PayU Money processes the transactions on your store:

  1. Customer A buys the product from your store and makes a payment
  2. PayU Money receives the payment on your behalf and sends you (the store owner) a notification about the same
  3. After receiving the notification, you dispatch the product to customer A
  4. Customer A receives the products
  5. You enter the Order Received details on your PayU Money Merchant Portal
  6. PayU Money sends a notification to Customer A to confirm order received
  7. PayU Money waits for customer to confirm delivery of the products for a period of 3 days. As soon as customer confirms, payment is transferred to your (the store owner’s) bank account. If customer doesn’t cofirm within the 3 days, PayU Money still transfers the payment to your account, at the end of 3 days.

Q: Why does PayU Money release payment only after they receive a confirmation from the customer?

A. In India, the payment gateway space is rather complicated; having a registered business and all makes it complicated. Two of the major pains of getting a payment gateway are:
1. Loads of paperwork needed to get a registered payment gateway for your business
2. High turnaround time after you have sent in your papers. It takes about 15-30 days to completely activate all payment options on your site.

Hats off to PayU Money for having saved all of us from these trials. They are taking a big risk on your part, to accept payments online without much documentation.

And that is why, by releasing a payment only after the customer acknowledges delivery of the product, they are making sure no fraudulent activities take place through their payment gateway.

Q. How is PayU Money different from the other more conventional payment gateways?

A. Like mentioned earlier, PayU Money is a payment gateway alternative for non-registered business i.e. individuals with nothing more than an individual savings A/C. Some of the other points of distinction are listed below:

Conventional Payment Gateways PayU Money Payment Gateway
Requires a company to be registered No company registration required
Needs a Current bank A/C in the name of the company All you need is an individual Savings bank A/C
Loads of documents required to get an authorized payment gateway Just a Savings bank A/C and a PAN Card required
15-20 working days required to activate payment gateway If all documents are in order, PayU Money is activated on your store within 48 hours of the PayU Money receiving the papers.
Store owner receives payment in T+2 days Payment is received as soon as customer confirms delivery


Q: Is PayU Money trustworthy?

A. We understand letting someone else handle your transactions is scary. But trust us when we say they are completely trustworthy. Otherwise we would have never have listed them, to begin with.

Q: Whose name will appear on the credit card statement of the customer?

A. The statement will record that a payment of so and so amount has been made to PayU Money. Which means that the transaction will be filed under PayU Money’s name.

Q: Where can I see PayU Money live in action?

A. Here are 3 of the Zepo online stores that are using PayU Money for their online transactions. You can place an order on any of these, to get a feel of it.

1. Piccadilly Bags
2. Head Line Hair Accessories
3. Bat 4 It

We at Zepo have integrated PayU Money for our online stores. So you are all ready set and go to get yourself the complete online store for your brand.Zepo + PayUMoney

Are you an individual with awesome products to sell? You can now start your online store without registering your business! Give Zepo a try and start your online store in the next 5 mins.

Yes, I’d Like to Start My Own Online Business Now

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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.

  • Abhinav bharat gartia

    To start a online store for customers

    • TanyaRao

      Hi Abhinav,

      How can we help you? Is there something specific you want to talk about?

      Team Zepo

  • chinna munna

    I am planning to start a online groceries store.Where i can register my online store.What i need to apply.My email id:,kindly reply with details.

  • Abhay Jambhulkar

    I’m from India but want to sell products only in USA. As an indian citizen I have to get a payment getway for my shopify website. What are the payment gateway I can use to receive the payments? I have signed up for citrus pay but for international transaction they are asking for registered business.
    Kindly reply with the details

    Thank you

    • Hi Abhay, there are 2 ways in which you can collect international payments – either with an international payment gateway account or with PayPal. PayPal is a very popular means of payment internationally. PayPal doesn’t require you to be a registered entity to collect payments. You should try them out!

  • Hi Sandhya! Drop shipping is a business model wherein you do not hold any inventory yourself. You can get more information about drop-shipping here –

  • Sandeep

    Before i get into business of selling online i have a question.
    I have just decided to start clothing business, which i want to sell to americans and abroad customers since the prices ranges from 2k to 3k i got almost zero response from Indians but i got good positive response from USA which i think is better market than India in my case, may be coz of price. Can my abroad customers abroad pay me in indian rupee when i show the price in dollars but checkout should be in Rupee through payu. Most of the customer will be having international credit/debit card in this scenario.

    • Hi Sandeep, thanks for getting in touch! In case you PayU, your customers from abroad can pay you via their Credit Card only. They will make the payment in Dollars or their national currency and you will receive the payment in Indian Rupee.

  • Hi Bharat, a detailed email proposal has been sent to your email ID. In case you don’t get it in your inbox it should be in your spam folder. For any queries, please get in touch with Shashi Maurya on 7506685848.

  • Lotfi

    Hi Guys, I’m not based in india, can I use your platform?

    • Hi Lotfi, thanks for getting in touch! You can use the platform if you’re not based in India, but the payment gateway registration and logistics services for pickup needs to be done from within India. Also, the default currency will be INR (Indian National Rupee), but with IP tracking, the price of the products will be automatically converted into the local currency of the website visitor.

  • Hrithik K

    Hey, this looks good. But can I run a small ecommerce website without registering with the govt and not face any problems? The turn over won’t be much too.. So please suggest…

    • You need to get it registered if the annual turnover is 5 lacs or above. For now, you can continue without any registration.

      However, if you are running a business from home, we do strongly suggest registering the company as a One Person Company (OPC). The process is really easy and can be done in 2 days and it will prove useful if you ever need to negotiate with logistics companies or marketplaces.

  • Hi Madhusuden,

    You can have a site accepting payments in US Dollars, however this will be available based on the IP address of the customer opening the site. If a customer based in US opens the site, the price will appear in dollars. However a customer opening the website in India will see the price in Rupees. Additionally, you will have to update the price in rupees in the backend and it will be converted to the correct US dollar value based on the current exchange rate.

    PayU Money is a payment gateway meant for unregistered businesses and cannot accept payments in US$. To accept international payments, you must have a registered business and use a payment gateway such as PayU Biz, CC Avenue, EBS, etc. You can also use PayPal for the same.

    If you are applying for and Indian payment gateway for you website, the company must be registered in India.


      Thank you so much and am clear, that some PG can accept International payments. Company is registered in India and have the VAT/TIN/PAN/TAN numbers. At back end, the cost of the product in INR(shipping free) for all National(India) customers. For International Customers, as shipping cost and the pack option(5kgs) is different how do I upload the cost, so that both National and International customers can shop in my website.

      • If you are using international shipping, you can upload a separate shipping rate sheet for international deliveries. This way, if someone is ordering your product in USA, he will pay whatever shipping and additional charges you decide for shipping to USA.

  • HI Kavita,

    You would require a copy of the Individual’s PAN card, Address Proof and cancelled cheque for a Savings account. For PayU Money, it will take about 20 – 25 days to complete the entire formalities perfectly.

  • Hi Rajiv,

    We do not have any list of drop shippers unfortunately. Hopefully, some of our other readers can help you out.

  • Tripzip India

    I want to start an app for ride sharing, please reply for following
    1) Can I use PayU Money as a payment gateway
    2) When payment shall be deposited in the car owners once lift taker confirms ride completion?
    3) We want to deduct 10% as a service charge, can it be deposited in our Payu Account?
    4) I also would like to know if Service tax shall be applicable on our charged Services Charges or on 100% trasaction amount

    • Hi TripZip India,

      1) You can definitely use PayU Money as a payment gateway.
      2) You cannot connect multiple deposit account to the Payment Gateway. All the money will be deposited by the Payment Gateway into a single approved account in T+2 days. From there, you can transfer it to the car owners.
      3) You can include the service charge as part of the final bill, which can go straight to your PayU Account. From there, you can keep 10% and remit the rest to the car owners.
      4) Service Tax should be charged on the Service Charges only. However, we encourage you to check with a CA or taxation lawyer to clarify these facts.

  • Hi Sudipto,

    Apologies for the late reply. Answering your questions below:

    1. You can get a shops and establishment certificate from your local municipal corporation office. But if you are working out of your home, you won’t be needing one.

    2. No, your business won’t be categorized as service provider. You’ll still be selling products. So you won’t have to pay service tax.

    3. VAT and CST taxation is the same. You don’t need to separately apply for CST. CST will automatically apply to you whenever you ship across state borders. Otherwise for intra-state deliveries you’ll be paying VAT.

    Hope this helps.

    • Hrithik K

      So if you are running a business from home, have a very small turnover, you don’t need to register?

      • That’s right Hrithik. You need to get it registered if the annual turnover is 5 lacs or above. If you are running a business from home, we suggest registering the company as a One Person Company (OPC). The process is really easy and can be done in 2 days and it will prove useful if you ever need to negotiate with logistics companies or marketplaces.

  • Hi Sudipto,

    You don’t need to right away register your business. The following details should help you decide when you need different registrations.

    1. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    3. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    4. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

    6. IEC is mandatory if you are shipping internationally. And for which, the pre-requisite is a registered firm.

  • Karthik G

    How Good is the customer support offered by Payu money ? I am asking this question after doing one round of reading reviews about Payu money online.

    • Hey Karthik,

      PayU Money has a good support team and from what we know the support is also robust.

  • Hi Saif,

    You don’t have to get a company registration to start an online business. You can use PayUMoney and get a PG integration with your Bank Savings account.
    However, if you want to get your shipments delivered in a timely manner, then we advice you to get your business registeres, as logistics companies need the VAT/CST/TAN number on logistics shipments. We hope this answers your questions. If you have any questions, do write to us at or call us at 9223583358.

  • Hi Kanna,

    There is currently not a way as such where you can charge these amounts separately on Zepo. However, you can add a 3% charge for online payments, in case of a COD you can add it in the shipment charge. If you have any doubts you can call us on 9223583358 or send us a message on

  • Hi Girish,

    You can use PayU if you are selling your software as a service. With PayU you can receive international payments, but the Payment gateway will levy additional international charges. The transaction rates will depend on the cost of your service package. We will strongly recommend you to get in touch with PayU and discuss your requirements with them and take a quote from them.
    Hope we helped.

  • satyenhacks

    Can international payments also be accepted using this?

    • Hi Satyen,

      You can use PayU, the company which owns PayU Money. PayU does accept international payments. However for PayU you need your business to be registered.

  • Hi Rohit,

    Since PayU like all other payment gateways deals with sensitive bank information, they have to take a few precautions to keep the user data safe. Thats why PayU Money works on the buyer seller protection model. In order to capture and keep a record of the details, it is mandatory for the customer to register on Pay U Money website. Hence it won’t be possible to remove the mandatory sign up.
    In order to incentive the customers to register on the Pay U Money website, they are giving the 2% off.
    Hope this helps clear any doubts.

  • Hi Mr Singh,

    In the merchant application form, the Business Name will be would be the Name of your company or the Name of your Brand, for which you are taking up the Payment Gateway. Do let us know if you have any more questions. You can call us on 9223583358 on

  • Hi Stalin,

    Usually the store owner needs to submit the acknowleged copy of the receipt that customer has received the order for Pay U Money to release the payment to the store owner.
    However, in special cases Pay U money will release the payment to store ownerafter 15 days in case if he is not able to submit the acknowledgement of receipt by customer.
    Acknowledgement / Proof of delivery
    may be any of the below forms.
    1. Tracking details of delivery by logistics person.
    2. Any written communication that its delivered.

    We hope this clears your doubts. Let us know if there are any other questions.

    • Lokesh

      What type of written communication.
      Any signature proof or id proof, if yes
      Please assume if customer deny to provide any of the above proof then

      • In case the customer denies to provide any proof, you can have the courier company provide you with a proof of delivery or you can provide the tracking details to the payment gateway.

  • Hi Abhishek,

    Most goods in the state of MP are taxable at 5% for VAT. But some items such as bakery goods can also fall under the 13% tax bracket.
    Depending on what goods you are selling, you may want to check out this list for reference.
    Also, we recommend you to contact a lawyer for the exact rates which will solely depend on the kind of goods you are selling.

  • Hey Maya,

    Currently there is no recurring payment facility in Pay U Money. Plus Pay U Money is available only for domestic buyers and sellers only.

  • Hi Abhay,

    Yes, it will get deposited into your savings account. Yes, you will have to pay income tax on the same, as it is a source of earning for you.

  • Hi Krishna,

    When you open an account with PayU Money, you are asked for your bank details. And your account is approved only the bank details have been verified. Which essentially means that when your PayU Money account is authorized, it is linked to your payment gateway. So you are not required to do it separately.

  • Hi Keyur,

    Yes, customer registration is a pre-requisite for PayU Money.

    What you are looking for, is an option with every other payment gateway, like CCAvenue or EBS, etc. However, you need to be registered as a company for getting such a payment gateway.

  • Hi Lakshmi,

    Apologies for this. Have updated our post with the latest updates.

  • Hey John,

    PayU Money is strictly for domestic payments, and not international.

  • HI Booshan,

    Company registration is not mandatory for getting an authorized payment gateway. There is a great alternative for those who don’t have company registrations or are individuals. PayU Money is a payment gateway specifically for this purpose. You can start with registering on their website as an individual and you can go ahead from there.

    Hope this helps.

  • Hi Javed,

    Yes, you can register for PayU Money while your company registration and the following documents are being drawn.

    You need to apply as an individual seller on PayU Money. And although it asks for company info, they are not mandatory fields so you can go about registering with ease.

  • Javed

    Hi there,
    I have registered a company i…e LLP. However it is still in the process…i mean company name has been registered under MCA but for further process like creating company PAN card and all other stuff it is still in the process.So is it possible for me to create account in PAYUMONEY for the transaction.I was creating but it is asking for the same.So please tell me how i can proceed further.

  • Hi Mohit,

    No TDS is applicable on the TDR paid to the payment gateway provider.

  • Mohit

    Hi Zepo
    Would there be any TDS implication as well on the TDR?

  • Hi Mahendar,

    Thanks for pointing it out. We’ll get someone to make edits to this immediately.

  • Mahendar

    Hello. In the second table, Case A,you have entered Transaction cost Rs.6.20. However in the first table,it is Rs. 2.9. Can I know how?

  • Sagar

    This is amazing information. Multi-million thank you to whoever had this idea of putting it up online, that too in such a detailed format.

  • Hi Siddharth,

    You can accept payments online through PayU Money. However, that payment gateway is only available for one individual at a time on a website. So this payment gateway will be authorized in the name of any of you, and not all.

    However, if you want the payment gateway to be authorized to all 4 of you as a single entity, you’ll need to get registered.

    You can check out more about PayU Money here:

    • siddharth bharadwaj

      Hi my further query is if I register a pvt. Ltd. Company. Nd through the co. Website can I collect fees of other dance schools even if they are not registered.

    • siddharth bharadwaj

      Just to add on to that – i have a registered co. say xyz (proprietorship) now xyz has created a website in the name of – now can i collect fees from other schools from my website.

  • siddharth bharadwaj

    Hi – i and 4 of my friends run a dance academy but we are not registered. Can we collect fees online through a common website for dance.

  • Hi Bed,

    There are a couple of differences between PayU and PayU Paisa or any other payment gateway like PayU for that matter.

    1. PayU requires a company to be registered whereas for PayU Paisa, now PayU Money, no company registration required.
    2. PyU needs a Current bank A/C in the name of the company and in PayU Money all you need is an individual Savings bank A/C.
    3. Loads of documents required to get an authorized payment gateway like PayU. For PayU Money, just a Savings bank A/C and a PAN Card required
    4. Instead of taking 15-20 working days to activate payment gateway, PayU Money takes 48 hours to activate if all the document are in order.
    5. Unlike a regular payment gateway, where you get payments in T+2 days, PayU Money credits the money to the seller as soon as the customer confirms deliver of products.

    Hope this helps. Also, if you’d like to integrate PayU Money on your store, you will need to reach out to their team and speak to them about the same. We at Zepo have already have it integrated on our platform. So all you need to do is open your online store with us and enter you authorization key. You’re good to go after.

  • Bed

    Hi, how is PayU different from PayMoney & PayU paisa and can I integrate PayU paisa with Shopify?

  • Yes Jaimin,

    These details are for someone who wishes to create a Merchant account on PayU Paisa.

  • Jaimin

    This is all Details for Merchant Account.

  • Amit

    Hi. I am planning to start a e-travel portal(similar to redbus). Can i integrate payumoney in my website? if yes, kindly let me know the procedures to be follwed.
    Thanks in Advance

  • Paddy Arvind Sudhaker Shenoy

    I sell on Amazon. How can i integrate pay u paisa on it ?

    • Hi Paddy,

      As per our understanding, Amazon doesn’t have PayU Paisa integrated, hence you won’t be able to use the same. PayU Paisa is available for people having their own online stores or websites and would like to integrate a payment gateway. Hope this info helps.

  • Sumit Ray

    Hi Zepo, I am an individual. While tried to open an account with PayUMoney (As i tried to open the link you’ve provided that took me to PayUMoney page), they’re asking for establishment details (I don’t have a company), Bank verification on letter head etc. But as I don’t have a registered business how will be able to provide those? If you kindly provide some insight how to register with PayUPaisa, I’ll be thankful.

    • Hi Sumit,

      When you register yourself as a Merchant on the PayU Money website, there are essential 4 steps to complete the registration.

      1. Business Details: You are required your business address and other details. You can put in your business address or put in your home address, if you’ll be working out of your home. You can select Business Filling Status as Individual in your case.

      Next, you are asked to enter your PAN Card details, in which case you can enter your own personal PAN card details.

      2. Bank Account Details: Next, you will need to enter your bank account details. In your case, you can enter your Savings A/C details. This is essentially used for all transactions.

      3. Bank Verification & Approval for PayU Money Tool: Both these steps are undertaken by PayU Money after you finish entering your personal and business details.

      Hope this clears your doubt. Do let us know if you’d like any more info. Or you can even contact the support team at PayU Money for guidance.

  • Smitha Vijayan

    I went pillar to post in the India Post office today trying to figure COD facility and they require me to register the business for the facility. How can I use PayU Paisa when my products are sold only on FB and have no website?

  • tt

    does payupaisa work for international customers buying a service?

    • Not as of now. PayU Paisa is only Indian transaction, buying and selling in INR.

  • Hey Ekta,

    The 10 lac threshold applies even if you are selling across India, since the company will be registered in Karnataka. So the Tax rules and conditions of Karnataka will apply, irrespective of where all you intend to sell.

  • Hi Ekta,

    Thanks for your question. You need VAT and CST only if cross a particular threshold in online sales.

    For Karnataka, if your annual sales turnover, specifically for your online store, cross 10L per annum, will you need a VAT or CST certificate. Otherwise, it’s not needed. Annual sales turnover uptil 10 lacs is non-taxable so you can stop worrying about that. But this specially with respect to online selling and sales, and the conditions maybe different for retail stores.

    Hope this gives you some clarity.

    • Ekta

      Hi Zepo, Thanks for your kind reply. So this 10 lac threshold still applies if I am selling throughout India? or just within Karnataka? Cos I want to sell across India. Thanks again,

  • Ekta

    Dear zepo, You said we dont need a registration like Prop, LLP or PVt ltd. Dont we need VAT and CST # as well? If none of these required then how is my transactions are tracked and how will Govt charge the tax on my transactions like buying and selling?
    Kindly clarify. I checked with someone here in Bangalore and he advised that VAT and CST are required to start a business. Also I could not get the VAT # cos I only applied it for Online selling. The tax officer says I need to have a store and warehouse to get the VAT and CST #s. I am stuck here… Any help? Greatly apprciate

  • Dhanasekar

    How can i integrate PayU pisa with my Web site?Will you provide links for testing purpose?

    • Hi Dhanasekar,

      PayU Paisa is already integrated with the Zepo platform and for all Zepo stores. Just give us a call on +91 922 358 3358 and we’ll help you through setting it up for your online store.
      And yes, we do also help you with a test link to try out the payment gateway.

  • gunjan

    what happens after i register my company…??

    • Hi Gunjan,

      Once your company is registered, you can move over to any other third party payment gateway like DirecPay or PayU.

      But, a point to remember, if you move to PayU from PayU Paisa you will need to serve a minimum of 3 months with PayU Paisa before you can move to PayU.