Do you know that 7 out of 10 shoppers leave the shopping cart before purchase completion?
Now, there can be many different reasons for that. Some top reasons include lengthy delivery time, slow loading of websites or apps, coupons not working, etc.
But sometimes customers leave because their preferred payment option isn’t available.
Due to this, eCommerce businesses must use a reliable payment gateway.
To help you find the right payment integration for your eCommerce business, I have created this list of top 10 eCommerce payment gateway options for India based on fees, security, ease of use and more.
Whether you’re just starting out or looking to switch, this guide will help you find the ideal payment solution to boost conversions and sales.
What is an eCommerce payment gateway?
An eCommerce payment gateway is an online payment processing software tool helping eCommerce businesses tackle the ever-rising online payments. They can easily accept credit cards and e-checks without much hassle.
Here are some things you must consider before choosing your eCommerce payment gateway:
- Total cost: Consider the cost incurred (set-up, monthly, and transaction fees).
- The number of currencies and payment methods: If your customers prefer certain cards, does the payment gateway support them?
- Holding time: The time taken in payment processing and reflecting the amount in the bank account.
- Recurring billing option: Availability of recurring billing for businesses following a subscription-based model.
- Hosted vs. non-hosted platforms: Many business owners prefer a non-hosted platform to ensure quicker payments and enhanced customer experience.
- Advanced fraud detection: The platform’s fraud detection and risk management level.
- We must provide mobile payment support as most customers shop through mobile devices.
- Integration options: Seamless integration with third-party tools.
Let’s move to the best eCommerce payment gateways you must try in 2024.
Best payment gateway options available in India for eCommerce businesses
- PayPal: Higher fees than Indian gateways
- Stripe: Limited adoption in India currently
- Amazon Pay: Seamless for Indian ecommerce customers
- RazorPay: Great for startups and SMBs, easy to integrate
- ApplePay: Limited adoption in India currently
- InstaMojo: Good for freelancers, individuals, small businesses
- Cashfree: Used by many Indian marketplaces
- PayU: Caters to Indian merchants and consumers
- Paytm Business: Wide reach, popular with Indian consumers
- CCAvenue: For large enterprises and ecommerce sites
Access Paypal Credit at zero additional cost and receive up-front payment even when customers use the credit option. A straightforward pricing system with no hidden or additional costs incurred at any stage.
Pros:
- Paypal Payment Pro offers secure and flexible payment options with complete customization and configuration.
- It supports major cart integrations, adapts to changing business demands, and increases conversions.
- Paypal Credit option for purchase now and pay later benefits both customers and businesses, with no additional costs and upfront payments.
Cons:
- Automatically freezes accounts on suspicious activity without warnings.
- Costs drastically increase based on an increase in conversions.
- Many eBay sellers complained about the extreme delay in payment processing (as long as 21 days).
Transaction charges: Rs. 3 on INR payments and 4.40% on International payments.
The payment platform remains highly efficient for securing safe international transactions. 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:
- It is less suitable for users with limited tech knowledge
- Comparatively more expensive than other alternatives
- It comes with many geographical restrictions.
Transaction charges: Payment processing fees: 2.7% + 5¢ | Monthly fee: $0
Suitable for: Ecommerce site owners looking for a payment gateway with reliable fraud protection, customizable checkout features, and extensive API features.
AmazonPay is a payment provider that helps customers make quicker payments using the information stored in their Amazon accounts. It’s one of the fastest payment systems, guaranteeing payment clearance within 1 to 2 business days.
The fraud detection system and risk management at no additional cost further ensure payment security. Takes direct information from customers’ Amazon accounts and facilitates quicker payment processing.
Pros:
- AmazonPay’s A-to-Z guarantee boosts conversions and instills 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.
- Provides zero support for PayPal payments, and store owners often give mixed reviews regarding functionality.
Transaction charges: Payment processing fees: 2.9% ($0.29)
Suitable for: Global Partner Program which includes many of the top solution providers, consulting agencies, and professional developers who work with brands to build and grow their commerce businesses.
In one consolidated dashboard, RazorPay helps eCommerce businesses manage payments, refunds, subscriptions, invoices, etc. 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.
- Razorpay is PCI DSS Level 1 compliant and undergoes frequent internal audits to ensure extensive safety and security.
Cons:
- It does not provide any free trial.
- No access to customer-friendly resources like gift cards or coupons.
- Does not rely on SSL support, which makes it less secure.
Transaction charges: Domestic payments: 2% per transaction & 3% on international cards
Suitable for: Small businesses to collect payments online.
Apple’s payment gateway solution is designed for mobile payment transactions, allowing merchants to process payments using Face ID or Touch ID. The solution primarily caters to consumers who prefer to manage their payments through an electronic wallet. In addition to PayPal, several other payment gateways can also accept Apple Pay payments.
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 charges: 1.5% + $0.25 to $15, depending on the amount
Suitable for: business that wishes to offer cardless, paperless payments
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 charges: Flat fee @ 2% + Rs 3 per transaction
Suitable for: Only for Indian payments
Cashfree Payments is a company that specializes in payments and API banking. They assist over one million businesses in accepting and sending payments. You can leverage Cashfree’s payment gateway to process both domestic and international payments on your e-commerce website.
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 offers 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 charges: Credit & Debit cards on Visa, Mastercard, Maestro, RuPay, 65+ net banking: Flat fee @ 1.90% + GST
Suitable for: small businesses
PayU, which was previously known as PayU Money, is an excellent payment gateway that allows you to receive online payments with minimal development effort. The sign-up process is easy, and you can get started with secure and seamless payment acceptance in your iOS, Android, or Windows app within a few minutes. Our onboarding process is 100% online and hassle-free.
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 charges: 2% + GST for each transaction. 3% + GST for international transactions
Paytm has become a leading payment option due to its large online consumer base and the convenience of its ‘Paytm Cash wallet. As a result, small eCommerce merchants could benefit from accepting Paytm payments.
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 charges: 2.8% for international Credit/Debit cards. 1.99% for Paytm wallets, Net banking, and Credit cards
Suitable for: Small businesses
CCAvenue is one of the largest payment gateways in India, offering a wide range of payment options. It is a popular service for online credit, debit card & internet banking processing transactions.
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 charges: Flat fee @ 2% on Domestic, Flat fee @ 3% on International cards
Which is the best payment gateway for Shopify?
The best payment gateway for Shopify depends on your business needs and preferences. However, PayPal is best due to its fast and secure gateway.
It also helps international payments without the hassle of converting currency. Another reason why we recommend PayPal is its fast and reliable customer service.
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 major payment methods
Benefits include a streamlined checkout process and integration with Facebook and Instagram Checkout.
Start your eCommerce business with Qikink’s print on demand products
Ready to start your ecommerce business with print on demand products but don’t want the hassle of ecommerce inventory, printing and shipping?
Qikink makes it easy with their wide range of print-on-demand products. From T-shirts, mugs, bags to posters and more, simply add your designs, set your prices, and Qikink handles production and shipping.
Unisex Supima T-Shirts
₹280.00
Oversized Classic T Shirt
₹240.00
Oversized Standard T Shirt
₹190.00
Heavyweight Oversized Sweatshirt
₹460.00
Baseball Cap
₹220.00
Greeting Card
₹30.00
Photo Postcards
₹30.00
All Over Printed Cushion Cover
₹140.00
Jigsaw Puzzle
₹120.00
AirPod Cases
₹150.00
All Over Printed Pillow Covers
₹220.00
Here’s how Qikink makes it easy to start and grow your online print-on-demand or dropshipping business:
- No inventory needed: Qikink handles printing & shipping
- Low startup costs: No need to invest in stock
- Quick launch: Start selling in days, not months
- Top print quality: High-res printing on apparel & merch
- Customizable products: Add own designs & ideas
- Integrated shipping: Hassle-free domestic & global shipping
- On-demand printing: Products printed when ordered
- High margins: Make 30-50% on each item sold
- Scalable: Grow your catalog & sales
- Free branding: Get a custom webstore
- Full support: Dedicated support
Not sure, where to start with Qikink, check out the resources:
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 2.9% plus $0.30, 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.
Final words
Consider all crucial factors like cost, flexibility, customization, transaction fee, etc., before selecting a reliable eCommerce payment gateway.
Most of these options come with a free trial, helping you evaluate the platform’s suitability. Choose your option wisely to ensure payment trouble remains the last reason customers abandon their purchases.
With over 6+ years of experience in the industry, Ayushi excels in building strong customer relationships and guiding clients toward growth as a Brand Partnership Manager. She enjoys sharing her experience in her content.
