Choosing A Payment Gateway In India: Your Ultimate Guide

Payment gateway integration is one of the first things that you need to consider when planning your e-commerce store. A payment gateway allows your store to accept payments online for the products you’re selling. Payment gateways might charge an annual maintenance fee or as a fixed percentage on a per transaction basis.

Payment gateways in India are many and by picking the right one you can focus on other areas of your online venture. Some of the top payment gateways include:

  • CCAvenue
  • Instamojo
  • PayTM
  • PayU India
  • Citrus Pay
  • PayPal
  • EBS to name a few.

Here are some of the factors that you need to consider while making the choice:


While looking for the right payment gateway provider, price definitely remains one of the most important factors. Almost all providers will charge an initial setup fee to get the processing engine configured to your website. You might also be required to pay a monthly subscription fee, and a processing fee for every transaction made on your website.

Try and look for payment gateways that don’t charge the monthly subscription fee or the processing fee. There are gateways that don’t charge the setup fee but charge a processing fee (1-2%) of the bill amount of every transaction.

If you’re a startup, it’s a good idea to opt for gateways that charge a setup fee and no monthly subscription and processing fee. Since this is an expense you can forecast ahead of time you can always ensure you have the setup fee arranged beforehand.


After cost, security is the most important thing that you need to consider. Make sure that the payment gateway you choose offers airtight security, for the benefits of both your customer and you.

Online payment frauds are on the rise, and it’s important to have a gateway that abides by PCI DSS. So, make sure to choose a company that has PCI DSS certification of the highest level. The level of security offered by different gateways differ, and data encryption is the minimum that you can ask for. Look for SSL certification and CVV2 verification options to avoid data theft.

Onboarding Timeline

One of the biggest problems that e-commerce store owners face with the payment industry is the large onboarding timelines. Merchants take a lot of time to approve their payments and transfer funds from their partner banks. This can sometimes take up to 2-3 months and can be detrimental to your business. More so, if you’re running a startup. Ensure that the payment gateway provider you choose can deliver your payments in less than a week.

Mobile Optimisation

Most e-commerce stores have their own mobile app version. While not everybody downloads every app, shoppers are not hesitating to use their smartphones to shop online. So, it’s important that the gateway you choose allows your customer to make payments hassle-free from the device they’re using, whether it’s a smartphone or a tablet.

A-Class Customer Support

‘Customer is king’ and the payment gateway you choose should believe in this as well. Their support helpline should be available 24×7 since you’re dealing with monetary transactions and other sensitive details here. You as a customer should be able to access them all through the day. Customer support should not be limited to an acknowledgement of your complaints but include suggestions for finding immediate solutions.

A payment gateway functions as the link between your e-commerce website and your customer’s bank and has a crucial role to play in the success of your online venture. Make sure it offers multiple payment options (credit card, debit card, PayPal, etc.). Always remember that you are not married to your payment gateway provider. You can also shift to a new one, if that’s more beneficial to your business. Review all payment gateway contract terms carefully to avoid unnecessary hidden charges.

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