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:
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.
- 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.
- 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.
- 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.
- 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.
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.
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.
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.
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.
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.
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
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:
- Higher fees
- A longer and more stringent verification process
- 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.