Resources for Small Business

A Review of Major Payment Gateways in India

A technological platform, logistics support, SEO, marketing, payment gateways, hiring employees! I could go on and on talking about all the things you need to set up an e-commerce venture. With so many choices around, any entrepreneur might struggle to find the right partners for their venture.

Here at Zepo, we have been lucky (or rather unlucky :p) to have to deal with ALL these issues on a regular basis. We know how tiring and time-consuming it can be to find the right partner to help you develop and grow your business.

So below, please find a “Beginners Review of Major Indian Payment Gateways”. This review is based on our experiences, conversations with clients and some online research.

We have classified gateways based on 5 major criteria:

    1. Cost
      Most payment gateways charge you a ‘setup fee’, which ranges anywhere from 4500 to 30000. Each payment gateway charges a TDR (Transaction Discount Rate) for every transaction processed through them. You are also required to pay an Annual Maintenance Charge (AMC) every year to keep the payment gateway active.
    2. Customer Service
      Good customer service will ensure that you don’t face unnecessary delays in setting up. It will also ensure you get a fast resolution to any problems that occur.
    1. User Interface
      When your customers make a payment, they get redirected to a payment gateway page to input their details and complete the order. Gateways with a good user interface will ensure that your customers can complete their payment quickly and easily, with minimum fuss. This, in turn, will help you present a good image to your customers and bring them back to the store. Along with the front-end interface, you will also need to use the Gateway dashboard to review your payments received, track the status of your payments or raise disputes. Having a good back end user interface will help you, as a store owner, to manage your store efficiently.
    1. Product and features
      A payment gateway is not complete by simply punching in your credit card and clicking confirm. A strong gateway also offers you additional product and security features to make the experience safe, secure and reliable. These features include Multiple Payment Options, International Payment Options, Fraud Checks, High Uptime, Technical integrations, etc.
    2. Payment Options
      A payment gateway is able to accept payments because of tie ups with financial institutions (banks, card processing companies, etc). The best payment gateways have a good number of payment options – covering Credit Cards, Debit Cards, Netbanking, and Mobile Wallets/Cash Cards.

 

Below are six major payment gateways that we have worked with and who we can review.

Payment Gateway PayU Biz PayU Money CC Avenue EBS DirecPay PayTM
Cost
Setup Fee Rs. 4900 – Rs.29900 No setup fee Rs. 4799 –
Rs. 23999
Rs. 4799 –
Rs. 23999
Starts from Rs. 6000 Starts from Rs. 10000
AMC Rs. 2400 No AMC Rs. 3600 (from 2nd financial year) Rs. 2400 (from 1st year) Rs. 2400 Rs. 2400
Credit Card TDR 3.9% – 2.5% 2% 3.75% – 2.5% 3.75% – 2.5% 6% – 3.5% 5.5% – 2.5%
Customer Service 8.5/10 8/10 8/10 8/10 8/10 7/10
User Interface 8/10 8/10 9/10 8/10 7/10 6/10
Product and Features 9/10 9/10 9/10 8/10 7/10 7/10
Payment Options
Netbanking Options (more details below) 37 37 48 44 46 20
Credit Card Options 3
Visa
Mastercard
AMEX
3
Visa
Mastercard
AMEX
3
Visa
Mastercard
AMEX
5
Visa
Mastercard
JCB
Amex
Amex EZEClick
2
Visa
Mastercard
4
Visa
Mastercard
Amex
Diners Club
Debit Card Options 4
Visa
Mastercard
Maestro
RuPay
4
Visa
Mastercard
Maestro
RuPay
4
Visa
Mastercard
Maestro
RuPay
4
Visa
Mastercard
Maestro
RuPay
4
Visa
Mastercard
Maestro
RuPay
4
Visa
Mastercard
Maestro
RuPay
Mobile Wallet/
Cash Card
1 1 8 5 2 1
  • PayU Biz

    Other information: Already being used by biggies like Jabong, BookMyShow, and PepperFry. Definitely more customer friendly than others, with the quickest response time. The USP of this payment gateway is the good practices which they claim results in 12% better conversions.

  • PayU Money

    Other information: PayU Money is exclusively for unregistered businesses. You can use PayU Money even before completing your company registration. They offer a very strong buyer protection model so your customers are never at any risk.

  • CC Avenue

    Other information: The biggest 3rd party player in India, powering a majority of Indian e-commerce websites. It also offers the widest range of payment options. Is the preferred choice for major players such as RedBus, Myntra, Snapdeal, MakeMyTrip, and PVR.

  • EBS

    Other information: Has a reputation as one of the most secure payment gateways in India. However, there have been mixed reviews regarding their service levels recently.

  • DirecPay

    Other information: It is a service from the Times Of Money group.Offers a host of additional features including PPC advertising for their customer websites, customizable checkout carts, and domain and hosting services.

  • PayTM

    Other information: A relative newcomer into this market. They are still working on getting their act together. Their user interface can be quite confusing to navigate. This would probably be a backup option for us.

List of Netbanking Options for Major Payment Gateways

Banks PayU Biz PayU Money Cc Avenue EBS DirecPay PayTM
Andhra Bank x x
Axis Bank x x x x x x
Bank of Bahrain and Kuwait x x x
Bank of Baroda x x
Bank of India x x x x x
Bank of Maharashtra x x x x x x
Canara Bank x x x x x x
Catholic Syrian Bank x x x x
Central Bank of India x x x x x
Citibank x x x x x
City Union Bank x x x x x
Corporation Bank x x x x x
Cosmos Bank x x
Dena Bank x
DBS x
DCB Bank x x x x
Deutsche Bank x x x x x
Development Credit Bank x x x
Dhanlaxmi Bank x x x x
Federal Bank x x x x x
HDFC x x x x x x
ICICI x x x x x x
IDBI x x x x x x
Indian Bank x x x x
Indian Overseas Bank x x x x
IndusInd Bank x x x x x
J&K Bank x x x x x
Karnataka Bank x x x x
Karur Vyasa Bank x x x x x
Kotak Mahindra x x x x x x
Lakshmi Vilas Bank x x
Oriental Bank of Commerce x x x
Punjab National Bank x x x x
Ratnakar Bank x x
Royal Bank of Scotland (RBS) x x
Saraswat Bank x x x x
South Indian Bank x x x x x x
Standard Chartered x
State Bank of Bikaner and Jaipur x x x x x x
State Bank of Hyderabad x x x x x x
State Bank of India x x x x x x
State Bank of Mysore x x x x x x
State Bank of Patiala x x x x x
State Bank of Travancore x x x x x x
SVC Bank x x
Syndicate Bank x x
Tamilnad Mercantile Bank Ltd. x x x
UCO Bank x x x
Union Bank of India x x x x x x
United Bank of India x x x x
Vijaya Bank x x x x x
Yes Bank x x x x x
Total 37 37 48 44 33 20

 

Please note: This is not an exhaustive list and there are many other gateways out there. We encourage you to research all available gateways before making your decision. Some other Gateways to consider might be Zaakpay, Citrus Pay, InstaMojo.

Many banks like HDFC, ICICI, Axis Bank, etc. also offer payment gateways directly. However, their setup process can be difficult, due to:

  1. Higher fees
  2. A longer and more stringent verification process
  3. Requiring you to submit a detailed business plan before providing a quote.

As a small start up, we believe this will be more of a hindrance than a help. Hence, we recommend you look at payment gateways through an aggregator instead of tying up with banks directly.

 

By the way, Zepo offers a free Payment Gateway with all of our plans! If you are looking for a payment gateway for your online business, why don’t you get in touch!

Yes, I want a Free Payment Gateway with my Online Store

 

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Ryan Shroff

Ryan Shroff

Jack of All Trades @ Zepo.
Ex-Teacher. Dog Lover. Amateur Activist. Book Collector. All Hat and No Cowboy. Will travel to the ends of the earth for a good cup of coffee.

  • Hi Mohit, we regret the inconvenience caused to you. This issue has been escalated internally and Keval from the payment gateway team will get in touch with you for a resolution.

  • Sai

    It would be nice if you guys can give integration for Instamojo and Razorpay.

    • We are definitely working on it. I should hopefully have a positive response for you any day now!

  • Prashant Bhurke

    Great to see this blog, I really feel nice to read this blog as it provides all the fundamental knowledge regarding payment gateway service providers in India. My website is integrated with EBS payment gateway and since integration it works fine. No issues during transactions, my clients are also happy. I would like to suggest you to go with EBS.

    • Hi Prashant,

      Glad you liked the blog! Hope your website is running well 🙂