Gateways in India (10/2024 Update)

Table of Contents

Made simple Seemless Transactions | Know About Most Useful Payment Gateways in India

In the rapidly evolving world of digital commerce, payment gateways in India

have become indispensable tools for facilitating seamless and secure transactions.

A payment gateway serves as a crucial bridge between different parties,

enabling the smooth transfer of funds in various scenarios, including

Business-to-Business (B2B), Business-to-Consumer (B2C), and

Consumer-to-Consumer (C2C) transactions. By acting as a secure intermediary,

payment gateways in India have transformed the entire process we

conduct financial transactions in the digital age.

Evolution of Payment gateway in India

Payment gateways have evolved throughout human history, from cheques

to the latest technological advancements in Unified Payments Interface

(UPI) by India’s NCPI. One of the earliest entrants into the field of

payment gateways in India was Airtel, with its Airtel wallet.

Airtel Wallet, however, had been too ahead of its time in India and

failed to gain a modified user base. Not to mention that the Airtel

wallet required an Airtel SIM card with an internet connection, both of

which had been extremely expensive at the time. Only after the launch

of Jio did the Internet become more democratic in its pricing.

Demonetization by the Prime Minister of India in 2016 also led to people

flocking towards payment options. However, that did not involve the

use of physical cash. While Paytm had been increasing its presence

by this time, this is when it experienced a true boom in its customer

base. 2016 also saw the launch of the Unified Payments Interface (UPI)

by the Government of India, which provided the services of payment

servicing without the fee charged by other methods, such as

Mastercard and others.While these laid a solid foundation for the

payment systems, the perfect expansion and increase in the use of

the payment systems only started happening during the lockdown.

This was the era when Indians had to use alternative methods of

transactions to buy even daily items. Travelling to ATMs was only

possible for some people at the time

Explore The List Of Most Prominent Payment gateway

Of the innumerable payment gateways in India that have cropped up in India,

these are the most prominent ones:

Paytm

Paytm emerged as one of the earliest gateways in India following

the launch and subsequent failure of the Airtel wallet.

Although Hike also attempted to become a super app

and enable money transfers, this feature has yet to gain

popularity nowadays. On the other hand, Paytm has continually

evolved and put in the groundwork at the grassroots level.

If you have visited smaller grocery stores and vendors, you might

have noticed an automated voice announcing the payment amount.

While these speakers may seem like a small innovation, they

significantly assist small vendors.They no longer need to verify the

payment individually; the speaker relays the amount, allowing

shopkeepers to instantly know if they have been paid without

checking themselves. This efficiency enables shopkeepers to serve

more customers, enhancing their overall productivity.

Paypal

Though not indigenously developed, PayPal possesses the resources and

support to conduct international transactions relatively quickly and efficiently.

This capability sets it apart, as Indian startups have yet to attain

such global reach and extensive user bases. Hence, it is only natural to

include PayPal in this list of notable payment gateways in India.

A common concern among users using PayPal’s services is the

exorbitant fees imposed for currency exchange.As the Indian payment apps

evolve and expand globally, there is hope for breaking the monopoly

that PayPal currently enjoys in this domain.The competition and innovation

brought by Indian startups going international may lead to more

cost-effective and accessible options for cross-border transactions.

Razorpay

Razorpay, with its exceptional services, has solidified its position

as the leading platform for seamless end-to-end transactions.

Its widespread adoption is evident across numerous government websites,

highlighting its popularity and reliability. Additionally, renowned Indian startups,

including Unacademy, Zoomcar, Groffers, BookMyShow, and others,

entrust their payment processing to Razorpay, further affirming its credibility.

One of the key factors contributing to Razorpay’s success is its ability

to accommodate payments from significant card companies worldwide.

This feature ensures that customers who prefer not to use UPI or

net banking can still experience a smooth and hassle-free payment

process comparable to other users. Razorpay’s inclusive approach and

comprehensive payment options have undoubtedly made it a

preferred choice for businesses and consumers, cementing its position

as a premier payment gateway in India.

BharatPe

Unlike the conventional payment gateways in India that primarily

generate revenue through minimal transaction fees for each transaction,

BharatPe follows a unique approach.Instead of relying solely on transaction charges,

BharatPe’s business model involves providing affordable small loans to vendors.

This strategy has set them apart from their competitors in the market.

Despite facing some controversies over time, BharatPe remains

a significant player in the industry, and the impact of these controversies

should not overshadow its importance and contributions to the market.

By combining payment gateway services with accessible financing

options for vendors, BharatPe has managed to carve a niche and

plays a vital role in the payment ecosystem.

Cashfree

Cashfree is one of the standout payment gateways in India

on this list due to its exceptional support for international payments,

making it a top choice for big players like BigBasket, Dunzo, Xiaomi, HDFC,

and more.Notably, Cashfree boasts one of the lowest transaction fees

in the market, attracting businesses seeking cost-effective solutions.

Moreover, it caters to customers who prefer the convenience of

recurring bills, periodically ensuring regular groceries and product

deliveries to their doorstep.One remarkable feature of Cashfree is its

swift and hassle-free refund process. Unlike other gateways in

India that may take 4 to 5 business days for refunds to be processed,

Cashfree provides instant rebates. This rapid and efficient service

significantly reduces customer anxiety and frustration.However, one

limitation of Cashfree is that it exclusively works with government-registered

businesses, leaving smaller firms and startups still in the initial stages

unable to utilize its services.This requirement adds a layer of complexity

and time consumption to the registration process, potentially

deterring smaller entities from considering Cashfree as a viable option.

Despite being set up cost-free, this restriction is inconvenient for those

businesses not yet fully committed to formal registration.

PhonePe

During the lockdown period, PhonePe’s employees devised a creative

and proactive strategy to expand their user base and increase the

adoption of UPI-based payment solutions among vendors.

Embracing a door-to-door approach, they introduced vendors to

the convenience of using UPI to accept and make payments.

This initiative was a game-changer, coinciding with when many

Indians were first introduced to digital payment gateways.

As a result of this dedicated effort, PhonePe experienced a

remarkable surge in its user base. The users who joined during

this introduction period to digital payments have displayed

exceptional loyalty to the platform. They form a significant

portion of PhonePe’s customer base and are now the service’s most

dedicated and steadfast users. While PhonePe may be considered

a minor player compared to industry giant Paytm, its impact and

significance in the Indian digital payment landscape cannot be

underestimated. The company’s strategic approach and commitment

to reaching out to vendors and users during the lockdown have solidified its

position as a crucial player in the market.This focus on fostering

relationships with customers and introducing them to the ease and convenience

of digital payments has contributed to PhonePe’s continued success

and growth as an essential player in the Indian digital payment ecosystem.

The company’s dedication to innovation and personalized engagement with

users have earned it a well-deserved place in the hearts of its customers,

making it a force to be reckoned with in the competitive payment gateway industry.

CCAvenue

With the increasing popularity of CCAvenue across Asia, this

versatile payment gateway has gained widespread acceptance among

online merchants. CCAvenue stands out for its impressive range of

payment methods, accommodating nearly 200 different options, including

six debit cards and over 60 net banking choices. Renowned companies

like Lakme, Air India, and Myntra have embraced CCAvenue as

their preferred payment platform for secure and seamless transactions.

One of the critical advantages of CCAvenue is its capability to handle

transactions in multiple currencies, offering businesses the flexibility

to cater to international customers without incurring any startup costs.

This feature has further enhanced its appeal to companies seeking to

expand their global reach while providing customers with convenient

and hassle-free payment options. With its user-friendly interface,

reliable security measures, and various payment choices, CCAvenue

remains a leading choice in the competitive online payment gateway market.

Amazon Pay

No one was surprised when Amazon also jumped into the market of

digital payment interfaces that operate in India. They are really a one-tap

solution to your every need.They were losing a lot to other gateways.

Even though it is a late player in the market, Amazon is trying to

leverage the customer market it has captured over the years to get

more people on its payment platform.They are providing an easy

payment method and also their services are accepted in every field.

So just tap and pay.

Gpay

Google’s GPay has been a tremendous success in India, gaining such

popularity that Google proposed the idea of introducing a platform

similar to India’s UPI (Unified Payments Interface) in the United States.

One of the key aspects that GPay takes pride in is its robust double-checking

procedure, which enhances security measures. This feature enables the platform

to promptly detect and prevent payments to known fraud accounts,

further bolstering user confidence in the safety of their transactions.

GPay’s strategic advertising campaigns have emphasized its safety

as a top priority, resonating with users and contributing significantly to

its widespread adoption and popularity as a trusted payment platform.

It has also included some gaming rewards, that make the user engaged

to use this platform. They are working on some amazing functionality to

lead in the upcoming days.

Atom

Atom provides its services mainly to businesses, with a huge

user base among merchants. It integrates over 50 banks and

250 payment choices. One of the key features is the ability to

keep an eye on all payments through the payment console

with a built-in multicurrency system.Atom strongly emphasizes

security, incorporating high-security encryption mechanisms to protect

payment data and secure transactions.It also allows for retrying a payment if

needed, providing flexibility and reducing the likelihood of transaction failures.

It may not offer anything new, but it is safe and reliable for its users.

Slice

This is primarily a digital lending platform which gives you

up to 2% in returns on every transaction through its credit card.

Slice is also a UPI-supported gateway app that sells itself to

customers mainly on credit cards.Besides the standard features

familiar with most payment gateways, Slice also allows you to easily split

bills with friends using notes or by adding tags. It also has a fuel

surcharge waiver of up to Rs. 200 on fuel transactions that are

less than 5,000. It also gives a release on rental costs. In this economy

and inflation, this is a godsend.

PayU

PayU, not originally indigenous to India but established in the Netherlands,

has successfully expanded its operations in India.

Despite competition from giant players like CCAvenue

and Paytm, PayU has gained significant popularity in India

thanks to its unique feature that allows users to personalize the checkout

page. This customization capability has played a pivotal role

in its successful establishment in the Indian market. Moreover,

PayU offers an integrated dashboard that enables merchants to

track their profits conveniently. This dashboard can be accessed

through computers and mobile phones, providing flexibility and

ease of use. Additionally, PayU’s selective country-focused approach

has resulted in a faster network and a higher

success rate for payment transactions than its competitors.

PayKun

PayKun is a robust payment gateway that prioritizes security with

all payments protected by PCI DSS Level 1 security measures,

ensuring safe and encrypted transactions. The settlement time

of fewer than three days adds to its efficiency, making it a reliable

business choice.While PayKun may not boast as extensive a range

of payment methods as some competitors, with slightly

over 100 methods available, it compensates by accepting payments

with great flexibility and ease, ensuring no barriers for customers.

Paykun’s Standout features

One of PayKun’s standout features is its ability to create payment invoices,

streamlining the payment process and enabling businesses to efficiently

generate invoices and monitor transactions. This feature enhances the

overall payment experience for both companies and customers.

Moreover, the option to securely store card information ensures

convenience for returning customers, who can make future purchases

without the hassle of re-entering their card details. PayKun’s user-

friendly interface and simple integration process make it an attractive

choice for businesses looking to enhance their online payment capabilities.

It seamlessly integrates with mobile applications and websites,

allowing smooth and hassle-free transactions.

Downside of Paykun

However, the only downside to PayKun is its need for more

support for transactions at the point of sale,

which might be a limitation for businesses operating

in physical retail settings. Nevertheless, its robust

security, efficient settlement time, and user-friendly

features make PayKun a compelling payment gateway

option for companies seeking a reliable and convenient

payment solution.

Mobikwik

Mobikwik has established itself as a critical player in the fintech industry.

The company focuses on providing a seamless mobile experience for

its users, prioritizing user interface and user experience optimization for

mobile devices.While Mobikwik offers a host of payment options and advanced

security measures, it is worth noting that it does not provide recurring

billing options or support multicurrency processing. Despite these

limitations, Mobikwik’s customer base includes notable clients like Zomato,

Uber, and Business World, underscoring its popularity and success

in the Indian market.

Nimbbl

Nimbbl provides the features of Buy Now Pay Later and

allows its customers of the merchants integrated with it to

pay later in instalments at minimal to no charge. While many gateways

(like Amazon and Flipkart) are pushing this feature as a part

of buying from their platform, Nimbbl is okay with working

with smaller clients. Nimbbl aims to provide transparent

pricing and clear terms for customers, ensuring

they understand the repayment schedule and any

applicable fees.A few concerns have been raised about

the BNPL model, with many younger customers needing

to realize how much more they are spending before it is

too late and they cannot afford things. However, if done

consciously and correctly, this can help people make more

significant purchases on their terms.

Instamojo

Instamojo is famous for no transaction costs on NEFT/RTGS and bank transfers.

Praised for its ease of use and user-friendly interface, the platform

focuses on creating a seamless mobile experience, incorporating

features like automatic OTP recognition to streamline the checkout process.

While it does not support payments in multiple currencies and

lacks recurring billing options, Instamojo’s free storage of digital files,

ability to share payment links, and effortless user interface make it a

compelling choice for many e-commerce ventures.

YONO

SBI is leading, as always, in the banking market of India.

YONO was started by SBI, India’s largest public

sector bank, as a super app that can provide all customers’

necessities.You can do various things directly from the app,

for example, booking tickets, mobile banking, financial

services and getting rewards and discounts using YONO.

It provides service all over India. You don’t need

to worry about it if you are in any corner of India,

they provide us with one of the best and most reliable

services in your need. Since a very trusted public sector

bank launched it, it has improved the public perception of the app.

However, the interface could be more straightforward,

and people use it more to do bank-to-bank direct

transfers instead of merchant payments and other things.

YONO also provides a list of SBI-supported mutual funds

and other things, such as saving for a particular

goal and fixed deposits that you can invest in directly

from the app. Compared to banking apps of many

other banks, YONO is very smooth, and its functionality

and SBI have worked towards making it more user-friendly.

ICICI Bank’s iMobile Pay

iMobile Pay is a new launch by ICICI Bank, so its abilities still

need to be tested. The other ICICI Bank app is clunky,

so the performance of this app remains to be seen.

This app supports UPI and other payments, just like YONO.

However, it also supports a fantastic feature by NPCI which

allows you to transfer money directly to the

receiver’s bank account by using the phone number attached

to their bank account.This is a feature that is only available in

some of the other apps, except Paytm. It allows you to send

money to a merchant even if the merchant does not have

a UPI-supported payment gateway that they use.

If this app works out well, it will benefit the merchants who

cannot use their smartphone’s UPI ID due to various concerns.

Conclusion

Gateways in India are innovative, with various features for users to exploit.

Still, the large number of payment gateways available has saturated the market.

The number of payment gateways is currently facing huge losses and layoffs.

This has increased the fear of failure of payment gateways in India among investors.

However, India’s success story with payment gateways is something that

many other countries are trying to replicate by establishing friendly

relationships with India and requesting that these features are shared

with everyone else through Bank tie-ups and other methods.

It is not an exception, as India is bringing up cutting-edge technology in this field.

They are making the thing innovative and also user-friendly.

That makes it perfect and useable for every single person.

Here is not the end, they also have the ability to maintain security.

However, with every step of this technology, they are maintaining security as well.

This is the essential field, and the matter is very much in the line of winner take.

Investors should not be supported with the current losses because

if the app they help is resilient enough to suffer through the

bubble and collapse of others, then the considerable market of India

will be theirs to take.