A Comprehensive Guide to the Top Payment Processors in India

India's payment landscape in 2026 is driven by real-time UPI infrastructure and strict regulatory frameworks. Discover the best gateways, processors, and Merchant of Record tools to optimize your checkout conversion.

Alok Vats

Product

10 min read

Jul 4, 2026

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Compare the best payment gateways and Merchant of Record platforms in India, including Razorpay, Kelviq, Cashfree, PayU, Stripe, CCAvenue, Instamojo, and PhonePe. Explore their pricing, benefits, limitations, and ideal use cases.

India’s payment market is built around UPI, cards, net banking, mobile wallets, and instant payment links. For businesses selling primarily to Indian customers, local payment success rates, settlement speed, and UPI support are often the most important factors.

However, Indian AI startups, SaaS companies, and digital product businesses selling globally face a different set of challenges. In addition to accepting international payments, they must manage subscriptions, usage-based billing, customer access, VAT, GST, sales tax, invoices, refunds, and compliance across multiple countries.

This guide compares traditional Indian payment gateways with Merchant of Record platforms that help software companies sell internationally.

The fees below are indicative and may vary depending on payment method, transaction volume, business type, and negotiated pricing.

1. Razorpay #

Razorpay remains one of the leading payment platforms for Indian technology companies, direct-to-consumer brands, SaaS businesses, and online retailers.

Its broad product ecosystem includes payment collection, subscriptions, payment links, payouts, checkout optimisation, and business banking tools.

Best for: Indian D2C brands, SaaS companies, technology startups, and online businesses serving domestic customers.

Indicative fees:

• Domestic cards and payment methods: Around 2% + GST
• International cards: Around 3% + GST
• Standard settlement: Usually T+2
• Instant settlement: Available for an additional fee

Pros:

• Strong developer experience: Clear documentation and APIs make integration relatively straightforward.
• Broad Indian payment support: Accepts UPI, cards, net banking, wallets, and other local methods.
• Checkout optimisation: Features such as Magic Checkout can help improve payment completion rates.
• Subscriptions: An additional ~1% subscription fee applies to recurring subscription payments, on top of the standard payment gateway fee.
• Business ecosystem: Offers payouts, banking tools, and other financial products.

Cons:

• Standard settlement periods may affect cash flow for inventory-heavy businesses.
• Compliance reviews can sometimes result in account restrictions or delayed activation.
• Businesses remain responsible for international tax registration, filings, and remittance.

2. Kelviq #

Kelviq is a Merchant of Record built for Indian AI startups, SaaS companies, APIs, developer tools, and digital product businesses selling globally.

Unlike a standard payment gateway, Kelviq becomes the legal seller for each transaction. It handles customer payments, international VAT, GST, sales tax, invoices, refunds, and compliance, then sends the Indian business a clean payout.

Kelviq is also built for modern AI products and agents, where customers may be charged based on API calls, tokens, agent runs, workflows, credits, seats, or other types of usage.

Best for: Indian AI startups, AI agents, SaaS companies, APIs, developer tools, and digital product sellers expanding internationally.

Indicative fees: Flat 3.9% + $0.40 per transaction.

There are no monthly platform fees or separate ingestion fees for reporting API calls and product usage.

Pros:

• Global tax compliance: Kelviq calculates, collects, and remits VAT, GST, and sales tax where required.
• Built for AI and agents: Supports agent runs, API calls, tokens, credits, top-ups, seats, subscriptions, and pay-as-you-go pricing.
• Usage-based billing: Charge customers based on actual product usage rather than relying only on fixed monthly plans.
• Real-time access control: Check a customer’s plan, credit balance, entitlements, or usage limits before an AI agent or workflow runs.
• Complete revenue system: Payments, subscriptions, usage billing, entitlements, invoices, refunds, and customer access are managed together.
• Reduced webhook work: Kelviq’s SDKs help teams manage usage reporting, feature access, and customer entitlements directly inside the product.
• Global selling: Indian founders can sell to international customers without managing tax registrations in every country.
• Clean payouts: Kelviq handles the customer transaction and relevant tax obligations before sending the remaining balance to the business.

Cons:

• Not built for e-commerce or physical products.

3. Cashfree Payments #

Cashfree Payments is known for fast settlements, payment collection, payouts, and automated fund transfers.

It is especially useful for marketplaces, e-commerce companies, and businesses that need to send payments to vendors, sellers, employees, or customers.

Best for: Indian SMBs, marketplaces, e-commerce brands, and businesses that need fast settlements and payouts.

Indicative fees:

Indicative fees:

• Domestic cards: Around 1.95% (standard rate); a promotional rate of 1.6% applies to eligible new merchants signing up on or before 31 July 2026
• UPI: Pricing may vary based on the business, plan, and promotional eligibility
• International cards: Around 2.99% (standard rate); a promotional rate of 2.69% may apply to eligible new merchants
• Standard settlement: Usually T+1
• Instant settlement: Available for an additional fee

Pros:

• Fast settlement: T+1 settlement can help businesses access funds more quickly.
• Strong payout system: Useful for vendor payments, marketplace settlements, and refunds.
• Competitive pricing: Volume-based rates may be available as the business grows.
• Payment method coverage: Supports UPI, cards, net banking, and other Indian payment methods.

Cons:

• The dashboard can take time to learn for non-technical users.
• Some advanced features may require additional setup or approval.
• International tax compliance remains the merchant’s responsibility.

4. PayU #

PayU is a major Indian payment gateway focused on checkout performance, payment success rates, fraud prevention, and enterprise payment processing.

It is widely used by established e-commerce companies, large online businesses, and marketplaces.

Best for: Large e-commerce businesses, marketplaces, and enterprise merchants.

Indicative fees:

• Domestic transactions: Around 2% + GST (Visa, Mastercard, net banking, wallets, BNPL)
• International cards: Around 3% + GST
• Standard settlement: Typically T+2, with priority and same-day settlement options available
• No setup fee or annual maintenance fee on standard plans; custom enterprise pricing may vary

Pros:

• Strong payment success rates: Designed for large businesses processing high transaction volumes.
• Fraud protection: Provides risk management and fraud detection tools.
• BNPL support: Integrates with services such as LazyPay.
• Enterprise support: Larger merchants may receive dedicated account management.
• Custom pricing: Rates may be negotiable for high-volume businesses.

Cons:

• Onboarding and documentation can take longer than newer self-service platforms.
• Some plans may include setup or annual maintenance charges.
• Smaller businesses may not receive the same pricing or support as enterprise merchants.

5. CCAvenue #

CCAvenue is one of India’s longest-running payment gateways.

It offers broad domestic payment coverage and multi-currency support, making it useful for established businesses, educational institutions, NGOs, exporters, and traditional organisations.

Best for: Established Indian businesses, international exporters, NGOs, and organisations that need broad payment-method coverage.

Indicative fees:

• Domestic payments: Around 1.90% (standard rate on most plans)
• International cards: Around 3.00%
• Annual Software Upgradation Charges (A.S.U.C) typically apply, around ₹1,200+ per year depending on plan; waived in the first year on some plans

Pros:

• Multi-currency support: Supports payments in several international currencies.
• Large payment network: Accepts cards, net banking, UPI, wallets, and other local payment methods.
• Established infrastructure: Suitable for organisations that value operating history and stability.
• Large-ticket support: Commonly used by institutions and established businesses.

Cons:

• International transaction fees can be high.
• Annual charges may increase the overall cost.
• The dashboard and developer experience may feel dated compared with newer platforms.

6. Stripe #

Stripe offers developer-focused payment infrastructure for Indian SaaS companies, subscription businesses, and startups with international customers.

Its APIs support payments, subscriptions, invoicing, marketplaces, and other complex payment flows.

However, access for Indian businesses may be restricted, and new companies may need to request an invitation.

Best for: SaaS companies, technology startups, subscriptions, and international businesses that want to build their own payment infrastructure.

Indicative fees:

• Domestic cards: Around 2% + GST
• International cards: Around 3%
• Cross-border transactions involving currency conversion: May reach around 4.3%
• Standard settlement: Usually T+2

Pros:

• Developer tools: Strong APIs, documentation, and integration options.
• Subscription billing: Supports recurring payments, invoicing, trials, and plan changes.
• International cards: Suitable for businesses accepting payments from global customers.
• Fraud protection: Includes tools for identifying and blocking suspicious transactions.
• Flexible infrastructure: Useful for teams that want complete control over their billing implementation.

Cons:

• Access for new Indian businesses may be restricted or invitation-based.
• Cross-border fees can be expensive.
• Stripe calculates tax through separate products, but the Indian business remains responsible for registration, filing, and remittance.
• Usage billing, entitlements, and customer access may require additional development.

7. Instamojo #

Instamojo provides a simple way for freelancers, creators, and small Indian businesses to accept payments without building a complex website or checkout system.

It offers payment links, simple online stores, digital product delivery, and basic commerce tools.

Best for: Freelancers, independent creators, coaches, and micro-businesses without dedicated technical teams.

Indicative fees:

• Domestic transactions: Around 2% + ₹3
• International transactions: Around 3% + ₹3, subject to approval
• Standard settlement: Typically T+3 (3 business days after transaction)

Pros:

• Easy setup: Suitable for businesses without developers.
• Payment links: Start collecting payments without building a custom checkout.
• Simple storefronts: Includes basic tools for selling products online.
• Digital products: Can be used to sell downloads and other simple digital goods.

Cons:

• Settlement times are slower than several major competitors.
• The fixed ₹3 charge can affect margins on low-value transactions.
• International payment support may require additional approval.
• Not designed for complex SaaS or usage-based billing.

8. PhonePe Payment Gateway #

PhonePe’s payment gateway uses its large consumer network to provide a smooth UPI and mobile payment experience.

It is especially useful for small and medium-sized Indian businesses targeting customers who already use PhonePe.

Best for: Mobile-first businesses, Indian SMEs, online retailers, and businesses that depend heavily on UPI payments.

Indicative fees:

• Domestic cards and payment methods: Around 1.95% (standard rate); promotional pricing may be available for eligible merchants
• UPI and promotional pricing: Varies by plan and current offers
• International payments: Contact PhonePe for current pricing and availability
• Settlement schedules vary by merchant agreement and business profile

Pros:

• Strong UPI experience: Familiar checkout flow for millions of PhonePe users.
• Mobile-first payments: Designed for customers completing purchases on smartphones.
• Simple onboarding: Suitable for smaller Indian businesses moving online.
• Competitive pricing: Promotional or small-business pricing may be available.

Cons:

• Offers fewer advanced SaaS billing and marketplace tools than some larger competitors.
• International payment capabilities are more limited than global payment platforms.
• Not designed for global tax compliance or complex usage-based billing.

India Payment Gateway Comparison #

Which Payment Gateway Should You Choose? #

The best payment provider depends on where your customers are located, what you sell, and how your business charges customers.

For an Indian D2C brand, e-commerce company, or technology startup: Razorpay is a strong general-purpose option because of its broad local payment coverage and developer tools.

For an Indian AI agent, AI API, SaaS product, or usage-based software company selling globally: Consider Kelviq. It combines international payments, global tax compliance, subscriptions, credits, usage-based billing, and customer access in one platform.

For a marketplace or business that needs fast payouts and settlements: Cashfree is a strong option because of its payout infrastructure and T+1 settlement.

For a large e-commerce company processing high transaction volumes: PayU offers enterprise features, checkout optimisation, and fraud protection.

For an established business that needs broad payment-method and currency support: CCAvenue may be suitable, although its international fees can be higher.

For a technical team that wants to build and control its own payment infrastructure: Stripe provides flexible APIs and advanced subscription billing, subject to availability in India.

For a freelancer or creator who needs payment links and a simple storefront: Instamojo offers an accessible way to start collecting payments.

For a mobile-first Indian business focused on UPI: PhonePe Payment Gateway provides a familiar checkout experience for PhonePe users.

The Bottom Line #

India has several strong payment gateways for businesses selling to domestic customers.

Razorpay, Cashfree, PayU, CCAvenue, Instamojo, and PhonePe are designed around Indian payment methods such as UPI, cards, net banking, and wallets. The right choice depends on settlement speed, transaction volume, developer needs, and the type of business you operate.

Indian AI, SaaS, API, and digital product companies selling globally face a different problem. Accepting international cards is only the first step. They must also manage global tax, subscriptions, usage-based pricing, credits, invoices, refunds, and customer access.

Kelviq is designed for this use case. It allows Indian software companies to sell globally without building separate systems for payments, international tax, billing, and entitlements.