Buyer's Guide · India
Indian Payment Gateway Software in 2026
By Rajat Gupta, Founder & Lead Reviewer
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This guide ranks the 10 best Payment Gateway Software options available in India as of 2026, ordered by SpotScore — a composite of ratings, verified reviews, and feature coverage. All tools listed support Indian compliance requirements and are evaluated for suitability in the Indian market.
Top Payment Gateway Software in India: Quick Comparison
Ranked by SpotScore — a composite of ratings, reviews, and feature coverage
| # | Product | SpotScore | Rating | Pricing model | Local compliance (vendor-listed) |
|---|---|---|---|---|---|
| 1 | Razorpay | 9.1 | 4.8/5 (24) | Quotation Based | GST |
| 2 | Paytm Payment Gateway | 8.9 | 4.9/5 (112) | Quotation Based | — |
| 3 | Cashfree Payments | 8.6 | 4.5/5 (4) | Quotation Based | — |
| 4 | Citrus | 8.6 | 4.2/5 (3) | Quotation Based | — |
| 5 | Instamojo | 8.6 | 1.4/5 (14) | Freemium, Subscription, Quotation Based | — |
| 6 | Pine Labs | 8.5 | 4.3/5 (2) | Quotation Based | — |
| 7 | PayKun | 8.5 | 5.0/5 (2) | Quotation Based | — |
| 8 | EBS | 8.5 | 4.0/5 (558) | Quotation Based | — |
| 9 | Airpay | 8.4 | 4.0/5 (16) | Quotation Based | — |
| 10 | India Online Pay | 8.4 | — | Quotation Based | — |
1. Razorpay
Streamline your payments with ease.
- SpotScore
- 9.1/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
Razorpay's payment gateway software helps online businesses to accept payments from customers using their desktop and mobile devices. This online payment gateway helps you integrate seamlessly with the leading payment gateways in India, and global financial networks like Visa and Mastercard. The API based platform enables you to create your own extensions as per your needs.
2. Paytm Payment Gateway
Seamless integration, customizable alerts, effortless payments.
- SpotScore
- 8.9/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
The Paytm gateway software offers you all the benefits a payment gateway should offer – and more. It comes with a seamless integration with Paytm Wallet, configurable SMS alerts, transaction confirmation email for buyers and retailers, verification of users before proceeding further with their access, customizable dashboard for users and merchants, all major mobile platforms support.
Paytm Payment Gateway overview · Paytm Payment Gateway reviews
3. Cashfree Payments
Simple. Secure. Swift. Your ultimate financial solution.
- SpotScore
- 8.6/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
Cashfree Payments is a payment gateway for Indian businesses that handles both payment collection and disbursement. It supports recurring subscriptions, bank account verification, and payouts to bank accounts, PayTM wallets, or UPI addresses, with domestic and international funds settling within 48 hours.
4. Citrus
Streamline your payments with ease and security.
- SpotScore
- 8.6/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
Citrus is a payment gateway for small to medium-sized businesses that need to accept card payments, bank transfers, and mobile payments without depending on an external payment provider. Its in-house processing model gives merchants direct control over payment data and transaction flows within a single account.
5. Instamojo
Secure and seamless online payments made easy.
- SpotScore
- 8.6/10
- User rating
- Pricing model
- Freemium, Subscription, Quotation Based
- Availability
- Available in India
Instamojo is a payment gateway for Indian small businesses and solopreneurs that need to accept credit cards, debit cards, and UPI payments online with minimal setup. The platform charges 2% plus Rs 3 per transaction, but prospective users should evaluate its customer support track record — some users report account freezing and slow resolution times before committing.
6. Pine Labs
Boost revenue and streamline operations with Pine Labs.
- SpotScore
- 8.5/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
Pine Labs offers a comprehensive suite of solutions for businesses, empowering them to boost revenue and streamline their operations. Our merchant platform merges cutting-edge technology and financial services, creating opportunities for growth and minimizing risks. Through collaborations with leading institutions and brands, we equip merchants with customer insights and offer risk-managed finance solutions. Our platform is trusted by over a million merchants across Asia, in diverse industries like electronics, food, fashion, healthcare, telecom, and aviation. With a presence in 3700 cities and towns, Pine Labs' cloud-based infrastructure powers 3,30,000 point-of-sale terminals, facilitating 550 million digital transactions annually. Join hands with us to make your business more efficient, accessible, and profitable.
7. PayKun
Effortless payment solutions for your business.
- SpotScore
- 8.5/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
PayKun is a payment gateway for Indian businesses with existing websites or shopping carts that need a stable, integrable payment module with features like IPN messaging and an API platform for connecting external applications. It has limited international currency support, making it best suited for India-focused merchants rather than businesses with cross-border transaction needs.
8. EBS
Empowering banks with secure online transactions.
- SpotScore
- 8.5/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
EBS is a payment gateway designed, developed and supported by PayU, a globally trusted payments company. EBS provides banks with a complete solution for online transactions processing in emerging markets. It is the finest web-based end-to-end payment processing solution for banks that serve millions of customers in fast growing markets.
9. Airpay
Effortless and secure online payments made simple.
- SpotScore
- 8.4/10
- User rating
- Pricing model
- Quotation Based
- Availability
- Available in India
Airpay is cloud-based payment gateway software, which allows you to accept online payments on websites, mobile applications and kiosks. It can be setup in minutes with minimal effort and is pre-integrated with the most popular ecommerce platforms available today. It can accept payments from any major credit card as well as debit cards and ACH direct debit.
10. India Online Pay
Secure, seamless payments for businesses in India.
- SpotScore
- 8.4/10
- Pricing model
- Quotation Based
- Availability
- Available in India
India Online Pay allows their clients to process online payments through any of the major credit cards or e-payment options and bank accounts in India. They make it possible for payment gateways to accept all banks' online payment methods, including IMPS, NEFT, RTGS, and credit cards, as well as systems that allow businesses to take payments directly from consumers.
How to Choose Payment Gateway Software in India
In India, the landscape for Payment Gateway Software is shaped by a complex regulatory environment that includes the Reserve Bank of India (RBI) and the Payment and Settlement Systems Act, 2007. Your business must navigate compliance obligations such as KYC (Know Your Customer) requirements and data localization mandates. The core challenge lies in ensuring that your payment gateway not only facilitates transactions but also adheres to stringent regulations to avoid penalties and operational disruptions. Non-compliance can lead to hefty fines, legal repercussions, and loss of customer trust, making it critical for you to choose software that meets all regulatory standards.
RBI's data-storage directive reaches the full end-to-end transaction details carried or processed as part of a payment instruction, so a buyer evaluating payment gateway software should ask where each stage of that chain physically sits.1 The RBI's mandate for all payment gateways to comply with data localization by January 2024 has further accelerated the demand for compliant software solutions.
Key Regulations
Payment and Settlement Systems Act, 2007
This act requires all payment systems in India to be authorized by the Reserve Bank of India. Your payment gateway software must have the capability to process transactions securely and must comply with RBI guidelines. Failure to comply can result in penalties of up to ₹1 crore or imprisonment for up to two years for responsible officers.
KYC Guidelines issued by the Reserve Bank of India
Under these guidelines, your payment gateway must implement KYC procedures to verify the identity of users. This includes collecting and storing identity documents securely. Non-compliance can lead to penalties and restrictions on your business operations.
Data Localization Requirement by the Reserve Bank of India
As per RBI's directive, all payment data must be stored within India. Your software must ensure that transaction data is processed and stored on servers located in India. Non-compliance can result in penalties, including the suspension of your payment processing capabilities.
Information Technology Act, 2000
This act mandates that your payment gateway software must have adequate security measures to protect user data. This includes encryption and secure data transmission protocols. Failure to implement these measures can expose your business to legal liabilities and penalties.
Goods and Services Tax (GST) Compliance
Your payment gateway must be capable of generating GST-compliant invoices and reports. This includes integrating with the GST Network (GSTN) for real-time reporting. Non-compliance can lead to penalties of up to 100% of the tax due, along with interest.
Foreign Exchange Management Act (FEMA), 1999
If your payment gateway processes international transactions, it must comply with FEMA regulations. This includes ensuring that foreign currency transactions are reported to the Reserve Bank of India. Non-compliance can lead to penalties of up to three times the amount involved in the contravention.
What to Look For
RBI-compliant transaction processing
This feature ensures that your payment gateway adheres to the guidelines set by the Reserve Bank of India for secure transaction processing. Verify that the software can handle various payment methods while maintaining compliance with RBI regulations. Ask vendors about their compliance certifications and transaction security measures.
KYC verification integration
Your payment gateway must support KYC verification processes to comply with RBI guidelines. This feature should allow for secure document uploads and automated verification processes. Confirm with vendors how they handle KYC data and the security measures in place to protect sensitive information.
Data localization support
Ensure that the payment gateway software can store and process data within India as mandated by the RBI. This feature should include options for local server hosting and compliance with data protection laws. Verify with vendors how they manage data localization and any potential risks involved.
GST invoicing and reporting
Your payment gateway should automatically generate GST-compliant invoices and facilitate seamless reporting to the GST Network. This feature is crucial for maintaining compliance with GST regulations. Check with vendors about their integration capabilities with GSTN and how they handle updates to GST rates.
Fraud detection and prevention mechanisms
Robust fraud detection features are essential for protecting your business and customers. The software should include real-time monitoring and alerts for suspicious transactions. Inquire about the vendor's approach to fraud prevention and the technologies they employ.
Multi-currency support for international transactions
If your business engages in cross-border transactions, your payment gateway must support multiple currencies and comply with FEMA regulations. This feature should provide real-time currency conversion and reporting capabilities. Confirm with vendors how they manage currency exchange rates and compliance with foreign exchange laws.
Common mistake: A common mistake among Indian businesses is selecting payment gateway software that lacks proper RBI compliance, especially regarding transaction processing and data localization. This oversight can lead to severe penalties, including fines and operational shutdowns. Before finalizing your vendor, ensure they provide clear evidence of compliance with RBI regulations to protect your business from legal repercussions.
Compliance Checklist
Does the software support RBI-compliant transaction processing?
This question is crucial because non-compliance can lead to penalties and operational disruptions. If the vendor answers no, you should consider alternative solutions that meet RBI standards.
Can the software perform KYC verification as per RBI guidelines?
KYC compliance is mandatory for payment gateways. If the vendor cannot confirm this capability, it poses a significant risk to your business.
Is the software capable of storing data within India?
Data localization is a legal requirement under RBI regulations. A negative response means you need to find a compliant solution to avoid penalties.
Does the software generate GST-compliant invoices?
Generating GST-compliant invoices is essential for tax compliance. If the vendor cannot provide this feature, it could lead to costly penalties.
Does the software include fraud detection mechanisms?
Fraud prevention is critical for safeguarding your business. If the vendor lacks this capability, your business may be at risk.
Can the software handle multi-currency transactions?
For businesses engaging in international trade, this feature is essential. If the vendor cannot confirm this capability, it may limit your business's growth potential.
Questions to Ask Vendors
- Are you compliant with RBI's data localization requirements?
- How do you ensure KYC verification meets RBI standards?
- What measures do you have in place for fraud detection?
- Can your software generate GST-compliant invoices automatically?
- How do you handle updates to RBI regulations?
Frequently Asked Questions
In India, payment gateways must comply with the Payment and Settlement Systems Act, 2007, and KYC guidelines issued by the Reserve Bank of India. They must also adhere to data localization requirements, ensuring that all transaction data is stored within India. Failure to comply can result in penalties of up to ₹1 crore and potential legal action. It's essential to choose a payment gateway that meets these compliance standards to avoid operational disruptions.
To ensure GST compliance, your payment gateway must be capable of generating GST-compliant invoices and integrating with the GST Network (GSTN) for real-time reporting. This includes maintaining accurate records of transactions and adhering to the latest GST rates. Non-compliance can lead to penalties of up to 100% of the tax due. Verify with vendors that their software includes these capabilities before making a decision.
Non-compliance with RBI regulations can result in significant penalties, including fines of up to ₹1 crore or imprisonment for responsible officers. Additionally, your payment processing capabilities may be suspended, leading to operational disruptions. It's crucial to select a payment gateway that adheres to all RBI guidelines to mitigate these risks.
Yes, having fraud detection features is essential for payment gateways in India. These features help protect your business and customers from fraudulent transactions, which can lead to financial losses and reputational damage. Ensure that any payment gateway you consider includes robust fraud prevention mechanisms.
Using a foreign payment gateway for transactions in India can pose compliance risks, especially regarding data localization and KYC requirements. The Reserve Bank of India mandates that payment data must be stored within India. Therefore, it's advisable to use a payment gateway that is compliant with Indian regulations to avoid potential legal issues.
When selecting payment gateway software for Indian businesses, consider features like multi-currency support, integration with popular e-commerce platforms, mobile payment options, and robust fraud detection capabilities. Additionally, ensure it offers easy reconciliation and reporting tools to track transactions effectively.
Transaction fees for payment gateways in India typically range from 1% to 3% per transaction, depending on the provider and transaction volume. It's important to compare different gateways, as some may offer lower fees for high-volume merchants or specific industries.
The National Payments Corporation of India (NPCI) plays a crucial role in the payment ecosystem by facilitating and regulating digital payment systems in India, including UPI and RuPay. Payment gateways must comply with NPCI guidelines to ensure secure and efficient processing of transactions.
Yes, many payment gateways in India support recurring payments, making them suitable for subscription-based businesses. Make sure to choose a gateway that offers automated billing features and complies with the necessary regulations for such transactions.
Payment gateways in India typically offer various integration options, including APIs, plugins, and SDKs, for popular e-commerce platforms like Shopify, WooCommerce, and Magento. Check the documentation of the payment gateway to ensure it provides seamless integration with your chosen platform.
Customer support for payment gateways in India should be available in local languages and during business hours to assist merchants effectively. Look for providers that offer 24/7 support, as timely assistance can be critical during transaction issues.
Onboarding a payment gateway in India typically involves registering your business, submitting necessary documentation for KYC (Know Your Customer) compliance, and integrating the gateway with your website or app. The process can vary by provider, but most aim to streamline onboarding for quicker access to payment processing.
Payment gateways in India are required to adhere to strict security standards, including PCI DSS compliance, to protect against cyber threats. Many gateways also implement additional security measures like encryption, tokenization, and two-factor authentication to enhance transaction security.
The choice of payment gateway can significantly affect customer experience in India, influencing factors such as transaction speed, available payment methods, and ease of use. A reliable gateway can reduce cart abandonment rates and enhance customer trust, leading to higher conversion rates.
Yes, the Indian government promotes digital payments through various initiatives, including the Digital India campaign, which encourages businesses to adopt digital payment gateways. Some schemes may offer incentives or subsidies for small and medium enterprises (SMEs) to facilitate the transition to cashless transactions.
Which Is Better Than Razorpay?
You will find Razorpay at #2 in the ranking above, on a SpotScore of 9.1, 3.8 out of 5 and 141 verified reviews. Payoneer sits 0.2 of a point above it at the top of the payment gateway software order here. Spotsaas tracks substitutes for Razorpay on a dedicated page, which stays current as the payment gateway software field moves and carries the ratings alongside each name.
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Disclaimer: This research has been collated from a variety of authoritative sources. We welcome your feedback at [email protected].