How to Choose a Payment Gateway


Choosing a payment gateway isn’t that easy!

If you’re planning to do online business, sooner or later you will reach a point where you cannot push your business without enabling online payments on your ecommerce store. 

This blog helps you choose the right online payment method for your business. 

Let’s get started:

You can receive online payments mainly through the following ways:

    • Payment gateway  (for credit/debit cards)
    • e-wallets/mobile wallets
  • Net banking

How to choose a payment gateway

Payment gateway

A payment gateway is basically a system that enables seamless online transactions.

It authorizes every online payment made through plastic cards (credit/debit cards) and offers secure transactions.

What does a payment gateway do?

    • It collects the payment details
    • Authenticates the credentials (credit/debit card details)
    • Approves the payment
  • Transfers the amount to the merchant account

In short, a payment gateway helps you get paid!

Did you know?

26 % of online payments in India are carried out through payment gateways.

According to statistics, payment gateways will account for 30% of online payments by 2020.

There are a lot of payment gateways in India.

Which payment gateway should you choose?

 It depends on your requirements.

We help you find the best payment gateway in India. 

Before that let’s see how a payment gateway works.

Best payment gateway in India

 Things to keep in mind while choosing a payment gateway

  • Cost of setting up the payment gateway

Payment gateways have setup cost.

That is, you need to pay an amount for integrating the payment gateway in to your ecommerce website.

Some of them can be set up for free.

For instance, Instamojo payment gateway has zero setup fee. 

If you are going for a feature-rich payment gateway, the setup cost will be higher.

You can choose one that offers automatic billing support if you’re planning to give subscriptions to your customers. Because it helps carry out payments for recurring plans.

  • Annual maintenance fee

Almost every payment gateway in India charges an annual maintenance fee for software updation and further support.

Choose an online payment gateway that gives excellent support at reasonable rate. Also there are some with no maintenance fee.

  • Time taken to set up

Usually it takes a day to set up a full-fledged payment gateway. However, today you can find payment gateways that can be set up faster. For instance, Instamojo can be set up within a hour. 

  • Credit/Debit cards supported

This is a very important aspect to look at. Your customers may have credit/debit cards of different companies.

So you should consider a platform that accepts both international and domestic plastic cards.

For instance, VISA or MasterCard plastic cards are valid across the globe while RuPay plastic cards are valid only in India. A rigid payment gateway with limited payment options might not help customers.

  • User interface of the payment gateway

A flexible and efficient user interface ensures hassle-free experience for your customers. It helps customers make payments easily without any delay.

  • Service

Choose a payment gateway partner who provides excellent service. It comes handy when the payment gateway of your website crashes due to technical problems.

  • Currencies supported

This is a crucial aspect, especially when your ecommerce store has an international customer base. Choose a payment gateway provider that accepts foreign currencies to facilitate payment if you are selling internationally.

  • Transaction fee

It is the fee charged by the payment gateway provider for each payment. You can choose one with reasonable transaction fee.

A payment gateway with higher transaction fee might affect your business.  So you should compare the fee charged by each payment gateway before choosing one.

  • Facility to integrate the payment gateway

You must choose a payment gateway that works well with your website. Check whether it can be integrated to your website.

  • Security

It’s almost impossible to wipeout fraud on internet.

Choose a payment gateway platform that maintains high standards of security.

For instance, you can opt  for a payment gateway that complies with RBI regulations, PCI-DSS etc.

There are a lot of payment gateways in India. So it is important to choose the right one that suits your business. We help you narrow down to some great options!

List of top 5 payment gateways in India 2018

  1. Instamojo

Founded in 2012, Instamojo is one of the most popular payment gateways in India. It caters to over 3.5 lakh merchants across India.

It is best-suited for MSMEs (Micro, Small and Medium Enterprises). 

You can use Instamojo even if you don’t have a website!

All you need is a mobile number and bank account.

You don’t have to be a techie to set up an Instamojo payment gateway.

Moreover, you can sell your products on Instamojo’s online store.

Instamojo is a great choice if you’re looking for a reliable payment gateway with least set up cost.  But it does not support other currencies.


    • Cheaper cost
    • Easier to set up (No need of a development team)
    • No physical paperwork needed to set up
    • Transaction fee: 3% + ₹3 per transaction
    • Links to accept payment from Instagram/WhatsApp/Facebook
    • No hidden fee/charge
  • Easy to track sales and connect with customers
  1. CCAvenue

CCAvenue is the oldest payment gateway in India. It was launched in 2001.

It offers a wide range of payment options and also has partnership with almost every bank.

It is suitable for big ecommerce stores with huge transaction volume every day.

CCAvenue payment gateway requires an annual fee for maintenance,but provides excellent customer support.

It offers zero setup fee for startups under its Startup Pro plan


    • 200+ payment options
    • Supports multiple currencies
    • Transaction fee: 2% for local transactions, 3% for international payments
    • Annual maintenance fee: zero  
    • Accepts payment through website, mobile phones, QR code, email and social networking sites
    • Partnership with over 50 banks in India
    • Multilingual checkout page
    • Easier to customize your page
  • Retry option to reduce abandoned transactions
  1. PayUMoney

PayUMoney is one of the leading payment gateways in India. It has nearly 3.5 lakh merchants and is mostly preferred by small businesses.

It is owned by the London-based conglomerate Naspers. PayUMoney is also a cost-effective option for entrepreneurs.


    • No setup cost
    • Almost anyone can set up (minimum development effort)
    • Transaction fee: 2%
    • Annual maintenance fee: zero
    • Can be activated within minutes
    • No physical documentation needed
  • Option to create digital wallet
  1. Paypal

Paypal is a good international payment gateway for Indian merchants since it supports all major currencies.

It is used by over 200 million customers.

But Paypal has the highest transaction fee.


    • Supports international payments
    • Ensures more secure transactions (24×7 monitoring, fraud prevention etc)
    • Seamless resolution of disputes
    • Transaction fee : 2.9%-3.9% + fixed charge
    • Protection for customer data
  • Supports automatic billing and recurring plan
  1. Atom

Founded in 2006, Atom is one good option you can consider.

It has partnerships with major Indian banks and facilitates secure transactions through Advanced Encryption Standard.

Moreover, it has tie-ups with all credit card companies like Visa, MasterCard and American Express. Atome recently launched mGalla,  an exclusive payment app for merchants.  


    • 250+ payment options
    • Integrated dashboard to track each transaction
    • Facilitates international payment
    • Transaction fee: 2.1% for Startups on domestic credit cards/ 1.25% on debit cards
    • Fee for setting up: zero
  • Annual maintenance fee: ₹2400

 Payment Gateway Comparison

Payment gateway comparison India

Adding payment gateway to your website: Basic steps

1. Register your business

To have a good business experience and to get legal sanction for your firm, you must register your company with Registrar of Companies (RoC).

This is to ensure that yours is a legally formed business and it complies with the rules pertaining to the Companies Act.

You should decide the name and type of the company during registration.

Click here to know more about company registration.

2. Create your website

After registration, you can start creating your website with your company name. You can approach your development team to create a full-fledged website for your ecommerce business. Make sure your website loads faster and provides seamless user experience.

3. Choose a payment gateway

Go for the most suitable payment gateway for your business. You might want to get a payment provider that provides best payment experience for customers and also the one with lower transaction fee. 

4. Obtain the credentials

Once you choose the payment gateway, you will get the credentials to login and integrate it into your website.

5. Integrate the payment gateway

You might have to seek the help of developers to start integrating payment gateway into your website.

Because you have to do some coding to set up the payment gateway and make it work flawlessly on your website.

But it is not a Herculean task.

Moreover, you can choose payment gateways that require minimal development effort for integration.

Usually payment gateway provides developer’s guide to help integrate them easily into your website.

6. Start Receiving Payments

The payment gateway becomes operational once you add it to your ecommerce website. Now you can receive payments from your customers conveniently.

Payment gateways mainly deal with plastic card payments.

However, some payment gateways come with a range of payment options, from plastic cards to e-wallets.

Best payment gateway India

Some payment gateways may not work on certain platforms. It mainly depends on the platform that you choose to develop your website.

Website-compatibility and Android/iOS Support :Top 10 Payment Gateways

Top 10 payment gateways

Document checklist to set up payment options on your website

The documents you need to set up a payment provider on your ecommerce store depend on the type of your business incorporation.

Here’s the list of mandatory documents that are needed for different type of registered businesses.

Individual firm

✅Duly signed copy of Pan Card

✅ Duly signed copy of Address Proof: Driving License/ Voter ID/ Adhaar Card/ Passport

✅Cancelled cheque of the bank account (Original), IFSC code and Name should be printed.


✅ Copy of Pan Card (duly signed and stamped)

✅ Duly signed and stamped copy of address proof (Driving License/ Voter ID/ Adhaar Card/ Passport)

✅ Cancelled cheque of the bank account (Original). IFSC code and Name should be printed

✅ Duly signed and stamped copy of govt. proof of the firm  with government seal


✅Authorization letter for the Signing Authority duly signed and stamped by all partners on the company letter head. (format sent on registered mail ID)

✅Cancelled cheque of the bank account (Original) with IFSC code and Name.

✅Copy of Pan Card of the Authorized signatory duly signed and stamped

✅Copy of Address Proof of the Authorized signatory (Driving License/ Voter ID/ Adhaar Card/ Passport) duly signed and stamped.

✅Copy of your company’s pan card duly signed and stamped by authorized signatory.

✅Copy of government. proof of the firm duly signed and stamped by authorized signatory with seal

✅Copy of partnership deed duly signed and stamped by authorized signatory.

✅Copy of incorporation certificate mandatory for LLP (duly signed and stamped).

Payment gateways are in fact a great way to receive payments.

Some of them come with many features that help you in getting paid through various channels apart from plastic cards.

So choose a payment gateway, which you think is beneficial for both you and your customers.

Did we answer all your questions about payment gateway? Share your thoughts in the comments below.

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  1. great information and adding to that, the average rate for cart abandonment is 68% (!) which is extremely high! What I found out is that one of the reasons behind is complicated checkout or not enough payment methods. If , like me, your ecommerce business is international then it’s very important to include popular payment options for your targeted markets. My recent experience has been with G2A PAY – ( ) and till now I’m super satisfied. The integration process has been super fast, in fact it took me few minutes to register, and the number of payment methods are over 200, not to forget the simple checkout experience.

  2. Amazing Write-Up!! Thanks for sharing the information through this blog of yours. I will look forward to following your instruction.
    Also, I would like to draw the attention of the community to the ways to earn a potential income by joining the Capricorn Channel Partner Program and by starting a new DSC business with the help of Capricorn CA.


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