Best payment gateway for small business India must Online payment methods have integrated into our everyday routines. We use payment gateways when we need to do transactions for small retail purchases. A payment gateway is software that authorises us as customers to have online transactions through different payment modes like debit cards, credit cards, net banking, UPI, etc.
What components are involved in the Best payment gateway for small business India?
A payment gateway is a technology mediator that connects consumers and merchants. The use of payment gateways helps in an easy transaction of confidential details like credit card number that is entered on an e-commerce website. It helps with the easy and secure passage of information from the customer to the acquiring or merchant’s bank.
The best payment gateway for small businesses in India can be provided by the banks directly, or other payment gateways are available for startups authorised by the banks.
A payment gateway helps in fraud detection and understanding card details like card expiration, exceeding the card limit, etc.
Certain key players are working on the procedure of payment through the payment gateway. These key players include –
- Merchant: A merchant is a person who is selling goods and services to the consumers or customers.
- Customer: A customer or a consumer is a cardholder with access to the payment gateway. He makes the payment through his card, net banking or UPI services and pays for the purchases of the products.
- Issuing bank: It is the customer’s bank that issues debit cards, credit cards, ATM cum debit cards, or any other card for payment services.
- Acquirer(Acquiring bank): The bank of the person acquiring the payment, i.e., the merchant. The financial institution is known to maintain the shopkeeper’s or merchant’s account while dealing in products.
What is a Payment Gateway?
A Payment Gateway is an online application that helps authorise online payments through debit cards, credit cards, or other payment modes. You can have payment gateways for various purposes like online businesses, online retailers, bricks and clicks, or traditional brick and mortar.
The “Best payment gateway for small business India” helps you transfer the information between the payment portal [such as the e-commerce website where you, as a customer, are making the payment for the purchases] and the acquiring bank.
A payment gateway facilitates transferring payment between the shopper, i.e., the buyer and the merchant, i.e., the seller.
A payment gateway is a third-party system integrated into the e-commerce website on behalf of the merchant. It is a payment-receiving system that helps secure payment transfers with a secure internet connection.
The infrastructure of the payment gateway is such that you can make payments through credit cards, debit cards, net banking, UPI generating links or by scanning QR codes.
What Factors To Look Out For Best Payment Gateway For Small Business India?
If you are a merchant for any small/local/big business and want to have some boost with your payments or conversion rates, you can choose the following options that meet your criteria-
Reliability: A reliable payment gateway will help you with seamless services and fast payment within seconds. It will also help you avoid the frequent payment failures usually due to internet connections.
Supported currencies: A payment gateway is the one that supports your currency conversion. It helps you to have the native currency without high conversion charges. It will further help the merchant with increased cash flow.
Payment options: If your business [any small/large/supermarket/retail shop] has an option for diverse payment options, you can consider the use of payment gateways for your business methodologies.
Market integrations: A payment gateway also offers easy integration into your website so that you do not have payment errors while paying any amount for your purchases.
Security: When you make or make payments through the payment gateway, you are given an authorised OTP or one-time password to complete the transaction. It further protects you from the cyber-security and other online crimes.
Pricing and other fees: When you need to choose the payment gateway for any business type, try to go with low pricing and service features, having low margins so that you may have fewer losses on every transaction.
Payment Gateways and small Local Or Hyperlocal Businesses
Do you own a confectionary store, or do you require any offline or online payment method that you can use for your physical store?
You might be happy with the cash inflow you receive in manual currencies. But think again. Is the manual currency easy to manage, or do you need any other payment method to help you receive white money?
What do you do when any consumer or customer asks you to pay the amount for purchases through cards? Can you increase your sales by adopting any online payment method or making your business appear online?
What things do you require the most?
Suppose any consumer or customer comes to your shop and pays via a digital wallet, QR code, UPI ID or any other online payment mode. In that case, this will help you complete the exact transaction within seconds.
There will be no hidden disadvantages like giving exchange currency or coins to the customers or waiting for a long time for your turn to come.
First, you may be required to complete your KYC or other documentation through the payment gateway before finally dealing with it. When it concerns documentation and related work, you do not need to hassle as you can do it online.
Also, you will not have to hire extra employees at your retail shop to make the things available for the customers and have immediate payments. Plus, your payment gateway should be easy to understand and should not require any additional technical knowledge.
Payment Gateways & Online Businesses or Websites
You run an online website or business? Do you have more than 50 employees in your company working for you? Do you often pay salaries to your employees using cash?
Using any payment gateway can help you with your salary issues. You will not have to look further or anyone to count the notes or currency. It will save you time and help you transfer the immediate money within seconds.
If you are running an online brand, you may have COD options or options like online payment through debit card, credit card, net banking or any other mode. It will help in recognising your online brand or website. You need to integrate the payment gateway once and then leave the things on it.
What things do you require the most?
Does it make sense that you are using traditional payment services for your businesses or brands?
Also, certain traditional gateways, like any other banking website, allow you to save the beneficiary and make the payments. But, for this, you require complete bank account details of your client or customers.
Any modern payment gateway, like Google Pay, Razor Pay, CC Avenue, etc, will help you pay the amounts within seconds. It will stay the duty of you and the customer to save the individual bank account details in their respective accounts for payment gateways. The payment gateway will generate the UPI ID and any QR code on your demand. You can further share this with your customers and may receive the money.
Payment Gateways and large-scale Retail Chains Like Supermarkets
Imagine owning a supermarket and having a long queue to pay the amount for purchases with a traditional method, i.e., cash. On the one hand, you will require extra employees to count the cash and store the values. On the other hand, you also need to pay the remaining currency and hustle for the same.
Imagine yourself having any online payment method like a QR code, UPI ID, etc. It will require only a few seconds and the help of reliable internet to transfer the money to the merchant’s account within seconds.
What things do you require the most?
Even if you are not selling the goods and services online, adding online payment methods can help your customers with fast payments. It is one of the smart ideas you can pursue.
You are collecting money through online modes and adding the currency to your online Excel sheet or making bills simultaneously.
It will stay simple and smooth and not make you anxious to collect the money and give the coins in return. So there will not be any delay in the payment process.
You can have the traditional POS machines at your supermarket or stores. It will be enough to solve the payment issues. But again, if you have online modes like QR codes, UPI ID, etc, it will further improve the experiences of the customers and will ease your work.
Best Payment Gateways For Small Businesses and Startups in India
Cashfree is the cheapest payment gateway supporting businesses to collect and distribute payments. It supports different payment methods and modes like Rupay, UPI, IMPS, Visa, MasterCard, NEFT, PayTM & other wallets, various EMI options and Pay Later.
Cashfree has the lowest TDR rates and often completes the payment settlement within 24-48 hours. It is among the Best payment gateway for small businesses in India, helping analyse the website, designs, and designations, offering pop-up messages, flawless sign-out methods, etc. It can also work as an international payment gateway.
- It has zero setup charges.
- There is a free annual fee for this payment gateway.
- There is no transaction fee on RuPay and UPI transfers.
- The transaction fee follows as –
- There is an additional fee for transactions through Net Banking, Digital Wallets, Google Pay, and Debit/Credit cards, and it is 1.90%
- For the use of Visa and Mastercard international Credit/Debit cards, there is a fee of ₹7 + 3.5% of the total fee.
- For the use of Diners Club and American Express cards, there is a transactional fee of 2.95% on the total amount transferred.
- PayLater and Cardless EMIs have a fee of 2.5% on the total money transferred.
- There are around 100+ payment options with an acceptable method of UPI, EMI, digital wallets, Debit/Credit cards, etc.
- There are around 23-25 supported currencies, including Indian rupee.
- The onboarding approval takes 2-4 days.
It is a top payment gateway that suits startups and other small businesses. It was founded in 2013, with its headquarters in Bangalore. Setting up the gateway is easy, and the interface is simple to understand. If you are a merchant and want to use RazorPay as the “Best payment gateway for small business India,” you can access domestic and international payments through credit cards, debit cards, net banking, UPI and wallets. It sends customisable emails to subscribers, making them remember their future payments or failed transactions. It helps you with bank transfers, invoices and loan facilities.
- There are no setup charges for this payment gateway.
- The annual fee for the payment gateway is free of cost.
- The transaction fee follows as –
- There is a 2% dedication for credit card/debit card, net banking, UPI, mobile wallets, etc.
- There is a 3% dedication for using international cards, credit cards, EMI, Diners and Amex cards.
- You must pay at least 2% additional cost to manage features like Flash Checkout, Reports, Dashboard, etc.
- There is an additional support of 100+ currencies, including Indian rupee.
- Approval for onboarding takes around 4-5 days.
- For its integration, you need Java SDK.
If you want to increase the immediate cash flow with the best payment gateway for small business India, you can use Paytm. It is one of the most widely used payment gateways that can benefit small e-commerce merchants.
- There are no setup fees, annual fees or additional charges to set up this gateway.
- There is a transaction fee that applies, i.e., 18%+ GST, 1.80% for the use of net banking, 1.55% for the use of Paytm Wallets, 1.85% for the use of credit cards, 2.65% for international and AMEX cards, and 0.4% for debit card use.
- Majorly all currencies are supported for Paytm, including INR.
- To use the Paytm wallet, you must complete the KYC–which is valid for all users, including merchants and buyers.
Paypal is another payment gateway that is used globally. It is the first choice for all startups and all small businesses in India. It also accepts international payments and helps people to transfer money from and to the bank account for their purchases. With this payment gateway, you can apply for working capital loans. PayPal helps the merchant create invoices and receipts and allows the customers to pay whatever they want. The payment methods include debit card, credit card, and PayPal Credit. You can integrate this payment gateway with your social media platform.
- There is no additional or annual fee for setting up the gateway.
- The transaction fee follows as –
- There is a 5% deduction per transaction + INR 3
- Many acceptable payment modes include net banking, cash cards, digital wallets, Visa, MasterCard, Discover, and American Express.
- PayPal supports at least 56 different currencies.
- You need to wait for the approval of the request for onboarding, which may take around 30 days.
- There is an easy way to integrate this payment gateway with your e-commerce websites.
You can directly upload the documents on their site if you need this payment gateway. You can exceptionally go live within a few days. There are different pricing packages for this payment gateway. It helps you with –
- Multi-currency payment
- IVR payment
- Payment analytics or complete transaction report.
There are two major products of PayU, including PayU enterprise and PayU money. There is PayUBiz that Snapdeal uses.
If you are searching for the Best payment gateway for small business India, you can go with PayUMoney.
The features of PayUMoney –
- The website offers you a free tour.
- It does not require you to have any technical knowledge.
- The email invoice feature is available on this website.
- There is a wallet service available with this application.
There are no additional charges to set up the payment gateway. Plus, there is no annual fee that you need to pay. There is a transaction fee that is 2% + GST.
- Around 100 accepted payment methods include UPI, internet banking, card use, wallet use, Buy Now and Pay Later facility, etc.
- The app supports around 100+ currencies, including Indian rupee.
- Completing your request for integration may take 1-2 days.
- Highly customisable features are available.
IppoPay is one of the Best payment gateway for small business India. It is available for freelancers, small businesses, homepreneurs, and people doing business in Tier 2 and Tier 3 cities and rural areas. The applications also stay active at retail stores and accept payment through QR payment apps, including Paytm, PhonePe, Google Pay, BHIM and 150+ other UPI apps.
- The setup charges are free, plus there is no annual fee.
- There is a 1.9% fee for credit cards, debit cards, debit e-wallets and net banking transfers.
- There is an additional cost for transactions through international cards, i.e., 3.5%.
- There is support for 150+ currencies.
- Approval for onboarding may take around 2-4 days.
With this payment gateway, you can pay, receive and may review the payments. It is one of the first payment gateways adopted or made by Indians.
- The setup charges are free, plus there is no additional fee.
- The payment for integration is available in plans such as the Startup plan – which is free of cost; the Privilege plan – which takes INR 30,000 from merchants; and the transaction fee also applies – 0.90% of every transaction + 18% GST.
- There is support for nearly 120+ payment methods and 70+ currency support, including Indian rupee.
- Approval for integration takes 1-2 days.
CCAvenue is the most simple, secure and complete payment gateway. It provides real-time payment services and lets you pay through different methods like Credit Card, Debit Cards, Net Banking, and Digital and Mobile wallets.
It takes an annual fee for the first year, up to INR 1200.
The transaction charges are as follows –
- There is a 2% deduction for domestic cards like debit cards, credit cards, digital wallets, net banking and UPI.
- For the use of international debit and credit cards, there is dedication of 4.99%
- For the use of all domestic and commercial credit cards, there is a fee of 3% of the total fee.
- If you want to use the multi-currency option, there is an additional transaction charge, i.e., 4.99%.
- There are around 200+ payment methods and 27+ foreign currencies, including INR.
- Approval for integration takes 1-2 days.
It is one of the leading payment gateway solutions supporting 1 lakh businesses with full-stack technology and solutions to accept payment. There is a feature of financial operations attached to this payment gateway.
- There is no fee for setup and no annual charges.
- The accepted payment methods are Debit/Credit, Netbanking, etc.
- It supports only domestic payment; for instance, if you have set up the currency as INR, you can have currency exchange within INR only.
- It takes only 5-10 minutes for onboarding and integration with the website.
Best payment gateway for small business India and their complexities
The digital payments and the industrial phase have become more and more user-centric. The digital payment gateways often roll out contextual, offline, and hidden payments – one of the great help people received during the pandemic.
Now, payments through UPI ID, QR code and direct bank transfer through net banking or scanning codes are increased. On the one hand, the payment gateway industry is increasing its management, mode of payments and making new inventions concerning payment modes. On the other hand, local businesses are reshaping themselves using these payment methods. They are optimising the user experiences and also helping the customer to have some experience gain.
Thus, the complexity of the use of online or digital payments lies in the factor that there is a need to have an integrated tool with low code requirements. This tool should further serve customers and retailers with end-to-end digital transactions.
We have given the list of the Best payment gateway for small business India mentioned above. The e-commerce business is growing in India, and there is a need for the selection of a good payment gateway. Almost all startups and businesses have moved towards online transactions. It is providing quick and easy marketing services to customers.
A good payment gateway can protect your customers from any safety breaches. A payment gateway helps easily transfer the funds, and it further depends on the number of transactions. The number of transactions should be minimal or such that it should not affect the server of the payment gateway. Before starting any business, you should go for the checklist of organising the things and factors for selecting the payment gateway. If you have any doubts about starting a new venture and deciding the Best payment gateway for small business India, please write back to us. We will be looking forward to hearing from you!