Running an e-commerce business has its own challenges when handling payment gateways.
According to Baymard reports, 25% of shoppers abandon their carts because they don’t trust sites that share credit card information, and another 13% of users abandon carts because preferred payment options are unavailable.
Due to these challenges, businesses must choose reliable and trustworthy payment gateway options.
In this article, we share the 15 best payment gateways for e-commerce and their transaction fees, as well as the pros and cons of making an informed decision about your choice that helps to give a better user experience and higher conversion.
What is an eCommerce payment gateway?
An E-commerce payment gateway is an online payment processing service that helps businesses accept electronic payments from their customers.
It also helps merchants receive payments from their clients by securing card details and verifying their authenticity.
Finally, it securely withdraws the funds for a transaction from customers and deposits them into the merchant’s bank account.
How Payment Gateway Works?
Step 1: Customers place their orders through the website and complete their checkout process via the cart or other similar buttons.
Step 2: The merchant transfers the order details to the payment gateway, and customers pay with their preferred payment options, such as credit card, UPI, or other methods. The transaction is then forwarded to the issuing bank for authentication.
Step 3: After the authentication process, the issuing bank authorises the transaction.
Step 4: The payment gateway sends a message to the merchant accordingly.
Step 5: The bank settles the money with the payment gateway, which then settles the money to the merchant.
Here are some things you must consider before choosing your eCommerce payment gateway:
1. Security
When running an e-commerce business, protecting customers’ financial data is a mandatory consideration while choosing payment gateways.
Look for payment gateways that follow industry-standard security features and protocols, such as PCI DSS (Payment Card Industry Data Security Standard).
2. Cost
Price consideration dramatically impacts your business, so it is essential to understand and choose competitive fees.
Many fees are collected, such as gateway setup fees, monthly fees, transaction fees, and more. The added advantage is that some gateways offer zero setup costs.
3. Recurring billing
It is used when a subscription business charges customers for products or services on a regular billing schedule. It charges based on a monthly or annual schedule. So, consider these models, which help streamline subscription management and ensure a positive user experience.
4. Currencies supported
Consider a gateway that offers multi-currency support to handle international customers. This will help your business accept international payments and expand around the globe.
5. Hosted vs. non-hosted
A hosted gateway redirects customers to the payment provider’s site for processing, while a non-hosted gateway allows customers to complete transactions on the same website.
Many business owners prefer a non-hosted platform to ensure quicker payments and enhanced customer experience.
6. Integration with other systems
Consider how easily payment gateways integrate with other websites, applications, and platforms. If they are not compatible with other platforms, customers will leave the site. So consider whether they have Seamless integration with third-party tools.
7. Holding time
Considering the payment holding time helps you avoid potential issues due to payment delays. Many gateways release cash within 24 hours, and some take a week. Understanding these timelines helps you manage cashflows.
8. Mobile payments
It’s important to consider offering a seamless checkout experience on mobile devices. This will enhance user satisfaction and conversion rates because most customers shop through mobile devices.
Best payment gateway options available in India for eCommerce businesses
Payment Gateway | Why It’s Best for E-Commerce |
| PayPal | Global reach, trusted by customers, easy integration, secure payments. |
| Stripe | Developer-friendly, powerful API, supports recurring payments. |
| Amazon Pay | Leverages Amazon’s customer base, fast checkouts, trusted brand. |
| RazorPay | Simple integration, supports multiple payment options, Indian focus. |
| ApplePay | Seamless mobile payments, trusted brand, high security. |
| InstaMojo | Easy setup, affordable fees, great for small businesses. |
| Cashfree Payments | Fast payouts, wide range of payment methods, great for Indian market. |
| PayU | Supports international payments, robust fraud protection. |
| Paytm Business | Wide reach in India, integrates well with mobile apps, trusted brand. |
| CCAvenue | Multi-currency support, extensive payment options, reliable support. |
| PhonePe | Popular in India, quick transactions, easy integration. |
| BillDesk | Highly secure, widely accepted, supports multiple payment methods. |
| Easebuzz | Customizable solutions, great for startups, cost-effective. |
| MobiKwik | Fast mobile payments, offers wallet integration, great for Indian users. |
| Juspay | Smooth checkout experience, high conversion rates, robust security. |
- Transaction Pricing: Rs. 3 on INR payments and 4.40% on International payments.
- Suitable for: It’s ideal for businesses of all sizes. It has global reach, security features, and platform integration. It offers flexible payment options, low upfront costs, and enhanced customer trust.
Paypal offers a wide range of digital payment options, helping to reduce cart abandonment. It offers simple, transparent fees; with them, there are no monthly fees or setup fees.
It allows a seamless checkout process with a simple, all-in-one integration that helps accept multiple payment methods.
It quickly sends invoices to customers with their preferred payment method. It keeps businesses safe with real-time transaction monitoring.
Pros:
- It supports significant cart integrations, adapts to changing business demands, and increases conversions.
- It protects shoppers’ information with its advanced buyer protection tools.
- They don’t charge any fees when shopping unless it’s currency conversion.
- It lets businesses print their brand logos on the invoices.
Cons:
- Automatically freezes accounts on suspicious activity without warnings.
- High currency conversion fees.
- Transaction Pricing: 2% for cards issued in India
- Suitable for: E-commerce site owners looking for a payment gateway with reliable fraud protection, customizable checkout features, and extensive API features.
It provides tools to accept payments from customers online and in-person worldwide. It uses machine learning to reduce fraud and maximize conversions.
Its prebuilt payment form offers an optimized checkout process for customers. If businesses start subscriptions, Stripe Billing can help them set up recurring plans, send invoices, and more.
It partners with all major e-commerce platforms to help them integrate.
Stripe Radar reduces fraud by 32% with its machine learning models monitoring every transaction for possible risks.
Pros:
- Bundled with excellent features, including optimized checkout flows, fraud prevention, and seamless one-click checkouts.
- Provides various integration options for a fully customized experience and increased sales.
- Trusted by renowned companies such as Wayfair and ASOS for scaling revenue.
- Prevents revenue loss due to payment failure by guaranteeing payment authorization across global issuers and sending enticing retry messages and routing combinations.
Cons:
- Some users report that it’s customer support is less responsive
- It’s developer-friendly. Non-technical users may find it challenging to set up and manage without assistance. Comparatively more expensive than other alternatives.
- Transaction Pricing: Domestic processing fee 2.9% ($0.29)
- Suitable for: It has a secure payment infrastructure. Customers can use their existing Amazon account to make fast, easy, and secure transactions, improving conversion rates and customer satisfaction.
Adding an Amazon account to the checkout process helps increase conversion and lower cart abandonment.
It enables you to offer customers an easy, secure, and fast way to check out your site using the shipping and payment information stored in their Amazon account.
Amazon is one of the quickest payment systems, guaranteeing payment clearance within 1 to 2 business days.
Amazon offers your business the ability to provide financing options that allow customers to complete purchases, such as buy now, pay later, payment instalments, and more.
Pros:
- AmazonPay’s A-to-Z guarantee boosts conversions and instils confidence in customers.
- The guarantee ensures timely delivery and refunds from third-party merchants, reducing abandoned carts.
- AmazonPay prioritizes safety and security by sharing only necessary information with merchants.
- Required information includes name, email, and shipping details.
Cons:
- Mandatory Amazon account to carry out transactions.
- Strict policies regarding account cancellation for not following the mentioned rules.
- It provides zero support for PayPal payments, and store owners often give mixed reviews regarding functionality.
- Transaction Pricing: 2% per transaction & 3% on international cards
- Suitable for: Its seamless integration, support for multiple payment methods (credit/debit cards, UPI, wallets, and more), and user-friendly interface make it a valuable addition to any solution.
It’s an all-in-one finance platform in India. It makes online payment effortless with its easy integration, quick online onboarding, and feature-rich checkout process.
It provides various payment methods, Including Domestic and International Credit and debit cards, EMIs ( Credit/Debit Cards and cardless), PayLater, net banking from 58 banks, UPI, and eight mobile wallets.
It is PCI DSS Level 1 compliant, and it has frequent third-party audits and a dedicated internal security team to ensure the safety of your data.
Users can easily access all relevant data and insights and quickly generate customizable settlements. Furthermore, you can also run promotional offers specific to certain banks via the dashboard.
Pros:
- Offers various payment options, including support for most national and international debit/credit cards, net banking from 50+ banks, and different mobile wallets.
- The platform’s dashboard provides easy access to payment statistics, refunds, pending settlements, etc., enabling enhanced decision-making.
Cons:
- It does not provide any free trial.
- No access to customer-friendly resources like gift cards or coupons.
- It does not rely on SSL support, which makes it less secure.
- Transaction Pricing: 1.5% + $0.25 to $15, depending on the amount
- Suitable for: It provides customers with a fast, secure, and frictionless checkout experience for Apple devices.
It provides faster and easier transactions than using cards or cash. Apple Pay offers features like biometric authentication (Face ID, Touch ID) and tokenization, ensuring secure transactions and reducing the risk of fraud.
Its integration is seamless across iOS-based apps and websites, and it supports multiple payment methods, improving conversion rates.
Apple Pay is especially valuable for businesses targeting mobile and Apple-centric customers, offering a convenient and trusted payment solution that enhances customer satisfaction and loyalty.
Pros:
- Apple Pay transactions are incredibly secure.
- Track transaction history in the wallet app.
- Instead of debit card PINs, Apple Pay uses facial recognition and fingerprint identification methods, which are fast but highly accurate.
- You don’t have to carry a physical credit or debit card with you
- Cashback on purchases with an Apple card
Cons:
- Security gaps under certain conditions
- The entire payment process depends on the iPhone being charged and properly working.
- Not universally accepted by all merchants
- It only works with iPhone 6 and above
- Transaction Pricing: 2% + ₹3 + GST for physical goods and 5% + ₹3 + GST for digital goods.
- Suitable for: Best for startups and small businesses, primarily in India. it is a cost-effective, reliable choice for businesses looking to streamline their payment processes and grow efficiently.
It’s Simple, flexible, and safe online payments for your eCommerce business.
It offers 100+ payment modes, from Google Pay, Netbanking, debit and credit cards, EMI, and even pay-later options. Your transactions are paid out in 3 business days.
It offers a quick setup with no monthly fees, making it ideal for startups and small businesses. Instamojo also provides features like automated invoicing, subscription billing, payment links, and detailed analytics for tracking sales and performance.
Instamojo Payment Gateway enables new merchants to instantly create a merchant account for easy online payment collection, with or without a website. The charges of Instamojo are reasonable.
Pros:
- All major eCommerce CMS Systems, such as Magento, Prestashop, Opencart, etc, are supported
- Zero annual maintenance charge
- Instamojo Payment Gateway Integrations are available with Woocommerce, iOS, Android, CScart, WordPress, Prestashop, Magento, and more.
Cons:
- Mobile app payment gateway integration is not available
- Customer support isn’t available on weekends
- Multi-currency is not supported
- International Payment / Credit card is not supported.
- Transaction Pricing: Credit & Debit cards on Visa, Mastercard, Maestro, RuPay, 65+ net banking: Flat fee @ 1.95% + GST
- Suitable for: It’s suitable for e-commerce businesses, especially those in India, due to its seamless integration and support for a wide range of payment methods.
It Accepts payments in Indian Rupees (INR) and other 100+ foreign currencies with minimal integration effort. Provide a seamless, conversion-friendly checkout with a wide range of payment options.
It Offers 180+ payment options from UPI, Cards, EMIs, Pay Later, Wallet, Net banking and many more ways to pay. It Creates an unmatched customer experience with the simplest and easiest integrations for your website and mobile app.
You can leverage Cashfree’s payment gateway to process both domestic and international payments on your e-commerce website. It gives your payment gateway settlements within minutes, 24*7, and never runs out of funds to meet your business needs.
Pros:
- Ready-to-use eCommerce payment gateway plugins are available for platforms like Shopify, WooCommerce, Wix, Magento, OpenCart, and more
- You can go live within 24 hours of signing up
- You will have access to smart analytics, including live transaction reports, monthly collection comparisons, mode of payments, daily reports of settled and unsettled transactions
- A dedicated account manager will be assigned to each account as a single point of contact
- Cashfree payments offer the lowest TDR in India
Cons:
- Unreliable customer support
- Fraud detection puts genuine transactions in the suspicious category.
- Lag in payment confirmations
- UI/UX is not upgraded.
- Transaction Pricing: Domestic transaction: 2% and 3% for international transactions + 18% GST applicable for all transactions.
- Suitable for: Best for various industries, especially in emerging markets like India, Latin America, and Eastern Europe.
It’s Easy to integrate via APIs and SDKs and offers 100% online onboarding. It lets your customers experience the broadest payment methods, including Credit Cards, Debit Cards, Net Banking, EMIs, BNPL, UPI, and Wallets.
It is highly adaptable for businesses targeting diverse customer bases. PayU offers advanced fraud protection, easy integration with popular e-commerce platforms, subscription billing, and multi-currency support, making it ideal for businesses that require global reach, scalability, and enhanced security.
Pros:
- International payments are supported.
- Domestic credit cards like Visa, Mastercard, Diners, and Amex credit cards are supported as well.
- Multi-currency support is available.
- There are no withdrawal fees.
Cons:
- Customer support always seems to be busy.
- No of Days to start a transaction is 5-7 days
- Comparatively more expensive than other alternatives
- Transaction Pricing: 1.99% for Credit cards:Visa, Mastercard, RuPay and 3.50% for international cards
- Suitable for: It is particularly beneficial for businesses targeting the Indian market, offering features like instant refunds, multi-currency support, advanced security measures, and fraud protection.
Payment Gateway is highly suitable for e-commerce businesses in India due to its wide adoption, easy integration, and support for various payment methods, including credit/debit cards, UPI, wallets, and net banking.
Paytm also provides additional tools such as invoicing, subscription billing, and SMS notifications, making it a versatile choice for small and large e-commerce businesses looking for a cost-effective, reliable payment solution.
Pros:
- Supported all kinds of credit cards.
- Settlement takes place within 1-2 days. Also offers optional real-time / same-day settlement.
- Great customer service
- Supports all major eCommerce CMS Systems.
- Mobile App Integration is available for both Android and iOS.
- Supports 72 currencies worldwide
Cons:
- No of Days to start a transaction is 2 days
- No option to access Paytm payments bank account online.
- Concerns about security and privacy, as with any digital payment system.
- Transaction Pricing: Flat fee @ 2% on Domestic, Flat fee @ 4.99% on International cards
- Suitable for: It is ideal for businesses with international customers.
It is an end-to-end PCI-DSS-compliant payment-processing solution provider, catering to nearly 3 million merchants across all payment businesses.
With its path-breaking technology in the Fintech space, CCAvenue is committed to redefining user experience, improving transaction success rates, and exponentially increasing the earning potential of web merchants.
It supports various payment methods, including credit/debit cards, net banking, UPI, wallets, and even EMI options, making it versatile for customers with varying payment preferences. CCAvenue is known for its multi-currency support, global reach, and advanced fraud protection, making it ideal for businesses with international customers.
Pros:
- Wallets: Freecharge, Mobikwik, OlaMoney, Jiomoney, Paytm, PayZapp, Jana Cash, SBI Buddy, etc.
- Supports International payments and credit cards.
- Offers 200+ payment options, including 6 credit cards such as Amex, JCB, Diners Club, Mastercard, Visa, and eZeClick.
- Supports 27 major currencies. Enables you to serve customers in some major global markets out of India
- Multilingual payment page in 18 major Indian and international languages
- Mobile app payment gateway integration: Android, iOS, and Windows.
Cons:
- Annual maintenance charge for a startup account: Rs 1200
- CCAvenue settles weekly payments for all amounts over & above Rs. 1000, the minimum amount to be kept.
- Unimpressive customer support
- Activation takes 3-6 days.
- Transaction Pricing: the standard plan is free+ zero transaction fees
- Suitable for: It is suitable for particularly those targeting customers who prefer mobile-first payments.
It seamlessly integrates with websites and mobile apps and supports various payment methods, including UPI, credit/debit cards, wallets, and PhonePe-specific QR codes.
PhonePe’s ease of use, fast payments, and instant settlements make it ideal for businesses looking to provide a quick and secure checkout experience.
Additionally, it is particularly effective for companies with a mobile-centric customer base and those aiming to tap into the growing UPI ecosystem in India.
Also, it starts accepting payments as soon as you integrate at zero cost.
Pros:
- It supports various payment options, including UPI, credit/debit cards, wallets, PhonePe QR codes, and even EMI options.
- It also easily integrates with e-commerce platforms and mobile apps through APIs, making it simple for businesses to start accepting payments quickly.
- PhonePe offers quick settlement of payments, ensuring that funds are transferred to the business account in real time or within a few hours.
- PhonePe offers a smooth and optimized experience for businesses targeting mobile-first or app-based consumers.
Cons:
- Some users share that sometimes your transaction gets stuck in between for a long duration, which is a technical bug with this app.
- The dashboard opens without authentication. It neither asks for your PIN nor password to open.
- PhonePe is primarily designed for the Indian market and lacks strong international payment support.
- Like any UPI-based payment system, users might experience issues such as payment failures or delays, particularly during peak hours or due to bank-side technical problems.
- Transaction Pricing: It charges between 1.5 – 2.5% per transaction based on the method of payment.
- Suitable for: It suitable for those operating in India, that require a reliable, secure, and scalable payment solution.
It accepts 150+ payment options. They have a Feature-rich platform with a real-time view of transactions, customisable alerts and notifications. It offers Flexible integration options to deliver quick start, reliability and scale.
Merchants can launch their check-out experience on the web, through a mobile app, or payment links.
Supported over a wide range of content management platforms and plugins. It offers Flexible remittance payouts for efficient and transprent payment processing. They offer 24/7 merchant support for various query resolution and offline assistance.
Pros:
- It offers robust security features, including PCI DSS compliance, encryption, and fraud detection tools, ensuring that transactions are secure and reducing the risk of fraud.
- It offers subscription billing and recurring payment features, making it ideal for businesses with subscription-based models.
- It provides advanced features like invoice-based payments, bulk payments, and corporate payment solutions, making it suitable for large-scale enterprises.
Cons:
- The integration process may seem complex and time-consuming for small or non-technical businesses compared to simpler payment gateways.
- Some users report that BillDesk’s customer support can be slow or less responsive than other payment providers.
- BillDesk’s fee structure can be a bit complicated, with different fees based on transaction type, method, or volume, making it less transparent.
- Transaction Pricing: Customized pricing
- Suitable for: Suitable for small and medium-sized businesses, startups, and subscription-based services in India.
Easebuzz is cost-effective and easily integrates with popular e-commerce platforms like WooCommerce, Shopify, and Magento, making it an ideal choice for small businesses.
It offers features for subscription billing, making it an excellent fit for companies with recurring payment models, such as SaaS providers, membership services, and media subscriptions.
Pros:
- It offers competitive transaction fees, making it a cost-effective solution for small and medium-sized businesses.
- The platform provides seamless integration with popular e-commerce platforms like WooCommerce, Shopify, Magento, and WordPress, as well as custom API integration options.
- There are no upfront or annual maintenance fees, which makes it a low-cost entry point for businesses.
Cons:
- Its support for international payments is limited.
- It may lack some enterprise-level features like advanced fraud detection, complex subscription management.
- Transaction Pricing: 0% per transaction on UPI and Rupay + 1.9% per transaction for other cards
- Suitable for: Suitable for targeting the Indian market.
Its focus on mobile wallets makes it an excellent choice for businesses targeting mobile-first customers, particularly in India, where mobile wallets are gaining significant popularity.
With low setup costs, no annual maintenance fees, and affordable transaction fees, MobiKwik is an excellent option for startups and small businesses.
It has a separate website called Zackpay that handles the payment gateway. Merchants & their customers can contact the Zaakpay support team 24/7 for technical issues, fraud complaints, incomplete transactions, or more.
Pros:
- It has India’s most extensive mobile wallet user base and provides quick and convenient payment solutions for mobile-first consumers.
- It offers minimal setup fees and no annual maintenance charges.
Cons:
- Businesses with a global customer base may need additional solutions.
- It imposes transaction limits for certain payment types.
- Fraud protection tools may not be as comprehensive.
- Transaction Pricing: 0.25% per transaction or ₹ 15K*/ month
- Suitable for: Businesses in India that require a robust, secure, and scalable solution for online payments
It is ideal for e-commerce businesses because it can optimize payment flows and support multiple payment methods.
It provides seamless mobile payment experiences and is especially suited for companies with a large mobile user base, such as mobile commerce apps, food delivery services, and on-demand platforms.
Its innovative payment routing system is designed to optimize payment success rates and reduce transaction failures.
Pros:
- Payments are settled quickly, often within 24-48 hours
- It is optimized for mobile devices, offering a smooth and seamless mobile-first payment experience
- It provides robust security features, such as tokenization, PCI DSS compliance, and fraud prevention tools, ensuring secure transactions
Cons:
- Juspay supports multi-currency transactions, primarily focused on the Indian market. Transaction fees may be higher compared to some other gateways.
- The initial setup and configuration might be more complex for smaller businesses.
- It does not offer built-in invoicing or custom invoice generation, which could be a business limitation.
Which is the best payment gateway for Shopify?
The best payment gateway for Shopify depends on your business needs and preferences. Here, we share some of the best getaway options for shopify.
- Paypal
- Stripe
- Easebuzz
- Cashfree
- Razorpay
Also, you can consider trying Shopify payments, which is Shopify’s own payment provider. Key features include:
- No extra third-party transaction fees
- Customers can pay without leaving your store
- Real-time payout view from your Shopify admin
- Supports all primary payment methods
- Benefits include a streamlined checkout process and integration with Facebook and Instagram Checkout.
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- Inside Neck Labels
- Thank you Card
- Hang Tags
- Free Logo Stickers
- Thank you sticker Card
Also, Qikink offers add-ons to your custom banding orders.
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Frequently Asked Questions
How do these payment gateways compare in terms of fees and transaction costs?
Different payment gateways have varying fees and transaction costs. For domestic transactions, PayPal and Stripe charge Rs.3 per transaction to 2%, while Paytm charges 1.99% for transactions under INR 2,000 and 2% for transactions above INR 2,000. Razorpay has a standard transaction fee of 2% per transaction.
Are there any specific payment gateways that cater to international e-commerce operations?
Stripe and PayPal can process international payments. Other payment gateways that support international transactions include Payoneer and Skrill.
What security features should e-commerce businesses look for when choosing a payment gateway?
Payment gateways should offer SSL encryption, two-factor authentication, tokenization, and fraud detection tools. PayPal and Stripe are examples of payment gateways that provide these features.
How do the payment gateways handle various payment methods, including credit cards, digital wallets, and cryptocurrencies?
Payment gateways handle various payment methods differently. PayPal accepts credit cards, debit cards, PayPal balances, and bank account payments.
Stripe accepts all major credit cards, digital wallets, and cryptocurrencies. Paytm accepts payments through credit cards, debit cards, UPI, and net banking. Razorpay accepts various payment methods, such as credit cards, debit cards, UPI, and digital wallets.
Are there any unique features or integrations these payment gateways offer to enhance the online shopping experience?
PayPal provides PayPal Credit, Stripe offers one-click checkouts and optimized checkout flows, Paytm offers Paytm Postpaid, and Razorpay allows customers to save their card details for future transactions.
