- Most major Indian gateways have a list rate of around 2% plus 18% GST on cards, net banking and wallets. Razorpay’s standard rate is 2% plus GST.
- UPI is the most used payment method in India. Check how each gateway charges for UPI on your plan, because MDR rules and platform fees differ.
- Razorpay is the all-rounder, Cashfree is strong on fast settlement and payouts, PhonePe PG suits UPI-heavy stores, PayU suits larger merchants and EMI, and CCAvenue offers the widest range of options.
- Google Pay is a UPI app, not a gateway. Customers can pay with Google Pay through any gateway’s UPI option.
Quick comparison
| Gateway | Standard rate (approx.) | Known for | Best for |
|---|---|---|---|
| Razorpay | 2% + GST (cards, net banking, wallets); up to 3% international | Easy setup, plugins, payment links, subscriptions | Most D2C brands and startups |
| Cashfree | Around 2% + GST; offers for new merchants | Fast settlement, payouts, vendor splits | Marketplaces and cash-flow-focused brands |
| PhonePe PG | Around 2% + GST; strong UPI | UPI success rates, brand trust | UPI-first stores |
| PayU | Around 2% + GST | EMI and BNPL options, enterprise | Larger stores and high-ticket products |
| CCAvenue | Around 2% + GST; annual fee reported | Many payment options and currencies | Brands selling internationally |
Razorpay
Razorpay’s standard plan charges a 2% platform fee on domestic cards, net banking and wallets, 2.15% on corporate cards and up to 3% on international cards, plus 18% GST. It charges no setup fee or annual maintenance charge on the standard plan. UPI and RuPay debit carry zero MDR under Indian rules, but check how platform fees apply on your plan.
Strengths: quick onboarding, plugins for Shopify, WooCommerce and BigCommerce, payment links, subscriptions, a strong dashboard and many add-on products.
Watch out for: settlement is typically T+2 by default unless you pay for faster settlement.
Cashfree Payments
Cashfree is known for fast settlements and a strong payouts product for refunds, vendor payments and cashbacks. Its list rate is around 2% plus GST, and it has run limited-period offers for eligible new merchants.
Best for: marketplaces, brands that pay many vendors or affiliates, and businesses that want money in the bank faster.
PhonePe Payment Gateway
PhonePe is one of India’s biggest UPI apps, and its payment gateway is built around strong UPI performance, with cards, net banking and wallets as well. It has also run promotional pricing for merchants.
Best for: stores where most customers pay by UPI, especially smaller-ticket D2C and quick-repeat purchases.
PayU
PayU is one of the oldest large gateways in India, popular with bigger merchants. It offers a wide range of EMI, buy-now-pay-later and affordability options, which help with high-ticket products.
Best for: electronics, furniture, education and other high-value purchases where EMI drives conversion.
CCAvenue
CCAvenue has been around since the early 2000s and supports a very large number of payment options and international currencies. It has been reported to charge an annual maintenance fee after the first year, unlike most newer gateways.
Best for: businesses with international customers or that need payment options other gateways do not offer.
What about Google Pay, Paytm and Stripe?
- Google Pay is a UPI payment app, not a payment gateway for websites. Your customers can pay with Google Pay through the UPI option on any gateway, and shops can accept it in person with a UPI QR code.
- Paytm Payment Gateway is another option with UPI, wallets and cards, with a list rate in the same range as the others.
- Stripe moved to an invite-only model in India in 2024, so most new Indian businesses cannot sign up directly. Check Stripe’s India support pages for the current status.
- Shopify Payments is not available in India, so Shopify stores connect a third-party gateway such as Razorpay, Cashfree, PayU or PhonePe.
How to choose the right gateway
- Check your payment mix: if most orders are UPI, focus on UPI success rate and UPI pricing.
- Compare total cost: rate, GST, international card fees, refund fees, setup and annual fees.
- Settlement speed: faster settlement helps cash flow for growing brands.
- Platform plugins: confirm an official, maintained plugin for Shopify or WooCommerce.
- Extras: COD-to-prepaid offers, EMI, subscriptions, payment links and payouts.
- Support: test how quickly they respond before you go live.
Need a gateway set up on your store?
We integrate Razorpay, Cashfree, PhonePe, PayU and others on Shopify and WooCommerce stores, and test every payment method before launch. See our ecommerce website development service.
Frequently asked questions
Which payment gateway has the lowest charges in India?
List rates are close, around 2% plus GST for most major gateways, and UPI is low-cost or free under Indian MDR rules. The lowest real cost depends on your payment mix, volume and the offers you negotiate.
Is there GST on payment gateway charges?
Yes. 18% GST applies on the gateway fee, not on the full order value.
Can I accept UPI on my website?
Yes. All the major gateways support UPI, including Google Pay, PhonePe, Paytm and BHIM, through UPI intent, collect requests and QR codes.
Which gateway is best for Shopify in India?
Razorpay, Cashfree, PayU and PhonePe all offer Shopify integrations. Shopify Payments is not available in India, and Shopify may charge an extra transaction fee on some plans when you use a third-party gateway.
How long does settlement take?
Usually one to three working days depending on the gateway and plan. Several gateways offer faster or instant settlement for an extra fee.