Which is the best payment gateway in India?
Answer by Ruturaj Vaidya:
Mostly i've came across CCAvenue n which is secure and supports to most of Bank's. also read this where you can find others details too!
Comparison of payment gateways in India
If you are an Indian startup and you have an e-commerce component
to your application, you will need to review, evaluate and shortlist a
payment gateway that can handle online payments via credit and debit
cards. And most likely this will not be an easy or fast process. In
its current form, there are just a handful of payment gateway service
providers in India. Access to information related to a few them is
non-existent on the web.
I’m hoping that this post will help folks to do an easy and quick comparison between the various service providers.
Before we move on to the comparison, let’s consider some of the criteria that are important while evaluating a payment gateway:
All payment gateways have an intial setup cost and then charge a
small percentage of the transaction. Few have an annual maintainence
cost (AMC) as well. The initial setup cost is a one time charge only and
is mostly non-refundable. The annual maintainence cost is an annually
recurring charge. The transaction cost (TDR) is charge per transaction
and is generally anywhere between 4-7% of the transaction amount. The
higher the volume, the more you can negotiate the transaction cost.
How helpful and responsive is the service provider when you run into a problem ? Do they provide off hours support ?
3) Chargeback policy and disputes:
What is the policy for chargebacks and refunds ? What is the policy for disputes ?
4) Ease of Integration:
Does the service provider provide an easy way to integrate the
gateway into your app ? Do they provide alternate means for integration
if tomorrow your architecture changes for some reason ?
Beyond these basic criteria, you’ll also need to consider additional
factors (depending on your requirements) like – what credit cards /
banks are supported by the payment gateway ? Do they provide mobile
banking option ? What is their rate of successful transactions etc ?
One often raised point is why not use PayPal as your payment gateway ?
After all, they provide a great API for integration, there are plenty
of code samples already available and their rates are quite competitive.
Well, the reason why PayPal may not suit everyone’s requirements is
because they do not provide you the option to charge customers in Indian
Rupees. If using one of the PayPal supported currencies meets the
requirements of your app, great. If not, you’ll need to consider using a
payment gateway that will allow payments in Indian Rupees.
So, here’s a comparison of the major Indian online payment gateways (had to publish as a PDF since the spreadsheet wont fit on the blog). The list includes a comparison of CCAvenue, DirecPay (operated by TimesMoney group), EBS (collaboration with Axis bank), ABC Payments (operated by IndiaMart), HDFC, ICICI Payseal and Transecute.
The troublesome part of it was trying to locate the correct pricing
plans for the various payment gateways, especially for DirecPay, HDFC
and ICICI. DirecPay, HDFC and ICICI for whatever stupid reason choose
not to list their pricing plans on their websites. You need to contact
them via email or snail mail (ICICI) with your business details and only
then, based on the nature of your business, transaction volume etc. do
they send you a pricing plan. Sheer incovenience — I mean, so much
ground work to simply get info on their pricing plans ? Its been 3-4
days since I emailed DirecPay and HDFC for details about their plans and
am yet to hear back from them. I fail to see why they dont provide a
simple price info on their website rather than to go through this
The comparison document is by no means complete just due to the sheer
difficulty in locating correct information on the web. I’m keeping this
document ‘live’ – in the sense that if you have any input / update
suggestions to add any additional payment gateway to the list or to
update info related to any of the ones already listed in the document,
please send them in to me and I will continue updating the document.
So which payment gateway should an Indian startup use ?
To begin with, you should obviously analyse the various payment
gateways on some of the criteria that I listed above. On top of that, if
you need to review data related to the success rate, average time to
refund etc. for some of these gateways, I would suggest reviewing the
statistics revealed by IRCTC
– India’s biggest e-commerce site. They release monthly data related to
transactions and payments, which includes how much each payment gateway
contributed in terms of number of transactions, the amount contributed
by each as well as the number of days to refund etc. For instance, only
53% of the transactions using the HDFC gateway completed successfully
while ICICI gateway handled 17% of all the transactions that were done
on the IRCTC website. The data also provides great insight into what are
some of the main banks / debit cards being used by customers. For
instance, 8.10% of all net banking transactions were attempted by ICICI
customers while only 0.32% of all transactions were done by Bank of
Based on my research, if I were to use an Indian payment gateway
today, I would personally go with either CCAvenue or EBS – for the
simple reason that they make it very easy to get the needed information,
have good online documentation and support wide range of credit/debit
cards. In case of the other providers, its like a black hole – you try
to seek out information and become a customer — and they try to make it
that much harder to access that information.
If you have used / worked with and Indian payment gateway, I’d like
to know how your experience has been ? If you were to recommend one to
others, which one would it be ?