If you’re starting an e-commerce store, fintech portal, travel booking site, or even a billing SaaS platform, the most critical decision after launching your website is choosing the right payment gateway.
Why?
Because your gateway determines:
- How easily you can collect payments
- How quickly you get settlements
- How much you pay in MDR (merchant discount rate)
- And how trusted your brand looks to customers
Let’s walk you through how to pick the best payment gateway for your online business in India.
🧠 What Is a Payment Gateway?
A payment gateway is a technology provider that connects your customer’s payment (UPI, card, net banking, wallets, EMI, etc.) to your business account — securely and in real time.
Some examples: Razorpay, Cashfree, Paytm for Business, PayU, PhonePe, CCAvenue, etc.
🧾 Key Factors When Choosing a Payment Gateway
1. 🔐 Security & Compliance
- PCI-DSS compliant
- Tokenization support
- Fraud detection & risk scoring
Why it matters: A secure gateway builds trust and reduces chargebacks.
2. 💸 MDR & Transaction Fees
- UPI: 0% or low flat fee
- Cards: 1.5–2.5%
- Wallets: May vary
- Settlement charges: Instant vs T+1/T+2
Pro Tip: Don’t just compare MDR — check payout speed, refund charges, and monthly fee if any.
3. 🚀 Settlement Cycle
- T+1 (Next Day)
- T+2 or T+3 for new merchants
- Instant settlements (with fee)
Fast settlement = better cash flow for growing startups.
4. 🌐 Supported Payment Modes
- UPI
- Credit/Debit Cards (Visa, MasterCard, RuPay, AMEX)
- Net Banking (50+ banks)
- Wallets (Paytm, PhonePe, Freecharge, etc.)
- BNPL (Buy Now Pay Later), EMI, PayLater
Make sure your gateway supports the payment methods your customers prefer.
5. 🧩 Integration & APIs
- Laravel/Node.js SDKs
- Webhooks for success/failure
- Retry logic
- Mobile SDK (Android, iOS)
Choose a gateway that your developer can integrate in <1 day.
🥇 Top Payment Gateways in India (2025 Edition)
Razorpay – Best for Startups, SaaS – Powerful API, instant activation, UPI AutoPay
Cashfree – Best for Payouts, NEFT/IMPS – Fastest T+0 payouts
Paytm for Business – Best for Brand Recall – UPI + Wallet focused
PhonePe Business – Best for Mobile-first – Easy integration, trusted
PayU – Best for E-commerce – Built-in fraud detection
CCAvenue – Best for Large Merchants – EMI, multi-currency, white-label
🧠 Real Use Case: How Pay2All Manages Multiple Gateways
At Pay2All, we connect with multiple gateways for different needs:
- Razorpay: Instant recharge collections via UPI & Card
- Cashfree: Auto-payouts to retailers and resellers
- Paytm: Wallet collections for utility bills
- PayU: EMI & credit card based APIs for partner integrations
- PhonePe: UPI deep linking for WhatsApp bots
This multi-gateway strategy ensures redundancy, fallback, and cost optimization.
🧪 When to Switch or Use Multiple Gateways
- Your current gateway has frequent downtimes
- You need faster settlements
- You’re scaling and want better MDR deals
- You want to offer more payment options (EMI, BNPL, cards, etc.)
Always benchmark your gateway every 6 months.
✅ Final Checklist Before You Choose
- Is onboarding fast (less than 48 hrs)?
- Do they support your business model (API, SaaS, services)?
- How is their support response time?
- Do they support instant refunds?
- Are you getting a custom MDR based on volume?
📞 Want Help Choosing?
At Pay2All, we help you integrate the right gateway for:
- Recharge/Bill APIs
- Travel portal bookings
- E-commerce checkout
- WhatsApp bot payments
- Fintech partner flows