Various payment gateways in India


Need a book, or a latest gadget, or a railway ticket… what’s the first thing that comes in mind? Its Flipkart or Amazon or IRCTC for that matter. E-Banking and E-Commerce field is now growing as a burning craze amongst the young generations. Online shopping, E- books and E-Cards have become an imperative factor in our life. These past 5 years has brought an era of online revolution in India. According to the recent report released by RBI on its website for public comments, framed by GIRO (Government Internal Revenue Order) Advisory group headed by Prof. Umesh Bellur, IIT BOMBAY, to implement a national GIRO based Indian bill system it is mentioned that in India, bill payments are mostly done by Electronic clearing service subjected to the less exposure of Internet among the majority. But it is directly followed by online payments by various Gateways and is increasing exponentially.

But when there is money involved one can’t ignore the risks involved. Fail transactions are becoming an undesirable side of the coin. Often the reasons of failure are not clear and can be quite perplexing. Merchants are often much geared towards getting 100 basis points out of their processing rates. Yet changing gateways to shave off 100 basis points only to see 3% increase in failed transactions neither makes commercial nor economic sense. According to a statical report failed transactions have increased to 12.14% in year 2013. So how to tackle this emerging problem amidst the good effects of online commerce and wish and get (hopefully) a successful result. The solution resides in the decision of choosing a better payment gateway option…..

Now, the first thing that comes in mind is what exactly a Payment Gateway is? It is just an E-Commerce application service provider that gives authority to Credit or Debit Cards payment for online retailers. It gives protection to the sensitive data stored in cards like card numbers and account info and passes it securely between the costumer and the merchant and payment processors. Some of the important key features one should consider while selecting a payment gateway are (according to importance):

  • SECURITY: – Make sure that the payment gateway is secured. It should protect all the card data passing between the provider and user.
  • LESS COMMISSION:- While comparing a gateway, we generally face three type of fees a) Discount Fees
  1. b) Transaction fees and
  2. c) Setup fees

Normally when a user enters his card details the gateway cuts its commission and then transfers the funds to the e-commerce site. In any case one should prefer the gateway which cuts less commission because transaction fees are inevitable.

3) MULTIPLE PAYMENT OPTIONS: – A payment gateway should be

capable to accept different credit cards, debit cards and currencies.

  • EASE OF INTEGRATION: – It is necessary to integrate the payment process with your website. Which provider makes it easier compatibility to you is better.


In the present scenario we are surrounded by gateway tycoons like Payzippy, CC Avenue, Citrus, Pay India, EBS, ICICI Bank etc. But which is better? Whom to choose? Now if we compare them in reference to our key requisites we see that security is a big issue, but as the payment gateway industry is expanding the better and secure options are available. Almost every provider tries to provide the best possible privacy to the costumer.

But talking about transaction fees is a completely different matter. Payzippy for an example costs 0.75% of the transaction value for money upto Rs.2000 and 1% for above. But CC Avenue costs 1.25% for all values by debit cards. Mostly the value costs up to 4 to 7% taking net banking, Credit Cards etc in circumference.


Getting in bank zone ICICI is towering up followed by Axis bank. The most prominent E-Commerce site IRCTC is also successfully handled by HDFC and ICICI. On total ICICI is ahead amongst most prominent banks.

The payment options and refund policies are more or less same for every gateway. Though in ease of integration CC Avenue is more staple but the Flipkart Payzippy is quickly catching up in the race.

The rush of gateways has started a payment gateway war in India. Each one has their own interface and functionality. They differ in their options. Some accept credit cards, debit cards, net banking as well as mobile banking but some are yet on visa and master. But this gateway war has surely made Indian internet more E-Commerce friendly and it does also boosts our economy, and on the lighter side it makes products cheap.

Based on study of various reviews and reports and findings it can be said that Payzippy is more recommended as a suitable payment gateway. Though CC Avenue is a long name in the history of gateways, the teenage Flipkart Payzippy has great potential…..


Payzippy 0 1% / 3.5% /3.5% 0
CC Avenue 7,500 1.25% / 4% / 3.5% 1,200
Citrus 0 1.25% / 2% / 2% 0
ICICI 30,000 3-4% 0
Axis 6,000 6% / 6% / 6% 2,400


One big step is being taken by GIRO is the formation of Padmanabhan Committee. It is a subordinate branch in RBI Bharat Bill Payment System.

It studies the feasibility of implementation of GIRO based payment system.

Authorized entities such as agents, banks and payment gateways would be participants at the Bharat Bill Payment System. Being a part in this innovative step payment gateways have a set of rules on which they have to work accordingly. Being a government project its impact is large and the new standards and statics will surely help a common man in choosing a better and authorized gateway.

One more giant leap in the field of payment gateways and an increase in the number of them is the introduction of ‘RuPay’ on may 8 2014. It is India’s own payment gateway set up by National Payments Corporation of India.

It has lower transaction costs, higher level of customization and better data protection. Many prominent banks like ICICI, SBI and PNB are already using it for clearing and settlement. It is seventh such payment gateway in world.

Still it has a long way to go.

Hence one should be cautious while choosing the gateways. There are a number of options out there. Many are good in their own sense, but a detailed comparison is very important…. The better we choose, the better we use..






  1. Great Share … I was looking for the best payment gateways in India and came across your blog post. This helped me a lot for selecting the payment gateway for my website.

  2. Janhvi singh says:

    Wowww !!!
    Awesome article……it was very nicely written @Aman n Piyush

  3. Amita says:

    good article

  4. Amita says:

    nice article

  5. sujata says:

    nyc article aman n piyush….well done

  6. Apurva says:

    A very well written article… Well Done!!

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