Today, as a business owner, whether you run a brick-and-mortar retail store or an online-based business, you’ll need to accept a variety of payment methods other than cash, including credit cards and digital payments. In this digital world, accepting these payment types have become a necessity for doing business. This being said, there is an important thing you need to check on your to-do list after you’ve planned to accept digital and credit card payments- Payment processor. 

There are many different payment processors in India, and they all have unique features and advantages. Choosing the right payment processor for your business can be a difficult task. Luckily, we have researched and compiled a list of the top 5 options in India so that you can make an informed decision on what to use! 

Here are the top 5 payment processors in India in 2022. 

What is a payment processor?

Payment processors are the backbone of any business. If you want to start accepting payments, it is essential that you find a payment processor first. It allows you to accept credit cards and similar payments from your customers and process those payments by relaying information to your bank and customer’s bank. 

For example, if you’re running an eCommerce store on Shopify and want to accept credit cards as your preferred form of payment, then the payment processor will make sure that customers are able to buy from your website by connecting that card type with their systems. It checks that there are enough funds in your customer’s card and it is valid. The payment processor also checks for security measures such as making sure that the customer’s card data is correct. There are several payment processors in India that provide this service. 

Payment gateway vs Payment processors

Although payment gateways and payment processors are closely related, they are two different things. A payment processor is a company that facilitates your transactions whereas a payment gateway is a tool that transmits card data to the payment processor. The payment gateway connects the payment processor and merchant account (A merchant account is the account customer money goes into prior to being automatically transferred into your business bank account) to the credit card or debit cards companies such as Visa and Mastercard

Top payment processors in India


Paypal is not only one of the top payment processors in India but is also one the largest payment processors in the world. It specifically provides online money transfers while also operating as a payment processor or payment gateway for individual online vendors, eCommerce businesses, and other commercial uses. It currently operates in 200+ markets around the globe in 100+ different countries. 

Processing Fee

  • 4.40%+ INR 3 for international transactions.
  • 6% + INR 0.25 for international micropayments
  • INR 580 for dispute fees.
  • INR 250 for bank return on withdrawal/ Transfer out of PayPal.


  • Easy to set up and use.
  • No maintenance fees.
  • Multiple payment options.
  • Sophisticated integration options.


  • Account freezing issues.

Top brands that use Paypal

  • · American Airlines, Airbnb, and Amerisleep.


Instamojo is an Indian payment gateway startup with a massive user base. Instamojo accepts over 100 different payment methods and has a recurring billing feature that allows retailers to make monthly payments. The major highlight of Instamojo is that NEFT/RTGS and bank transfers are free.

Processing fee

  • 2% + INR 3 for UPI, Domestic Debit/Credit cards, Net Banking, Wallets, Pay later. EMI options are available for select banks.
  • 3% + INR 3 for International Cards and American Express Cards. 
  • 18% GST is applicable on the transaction fee.


  • No startup costs
  • Integration of websites and applications is simple
  • NEFT and Bank Transfers are free
  • Seamless user interface
  • Secure transactions.


  • Payment in multiple currencies is not accepted.

Top brands that use Stripe

  • ·UrbanClap, Dunzo, Alt news, Shriram Properties.


Razorpay is one of the most trusted payment processors in India that provides a safe and secure platform for processing credit/debit card payments, UPI, and several popular mobile wallets. It allows your business to accept, process, and disburse payments via its product suite. One of the notable things about Razorpay is that it is only available to Indian businesses that take online payments in India. 

Processing Fee

  • 2% for Indian consumer Credit/Debit cards, Net banking, UPI, and Mobile wallets.
  • 3% for International Credit/Debit cards, Diners, and Amex cards.
  • 18% GST applicable on the transaction fees.
  • Pros
  • Complete transparency
  • Instant settlements
  • Supports unregistered businesses


  • UI could be better

Top brands that use Razorpay

  • · Zoho, IRCTC, Facebook, Nykaa.


CCAvenue is a leading payment processor in India having thousands of merchants on board and offering multi-currency, multiple payments, and online payment processing services. The platform is powered by a technology that integrates transaction-processing, an advanced shopping cart, auction payment collection facility, fraud control, financial reporting, and order tracking.

Processing Fee

  • 2% – 3% for domestic Credit/Debit cards.
  • 2% for digital wallets.
  • 0% for UPI payments.
  • 3% – 4% for international Credit cards.


  • Smart analytics features
  • Secured server
  • Multiple payment options


  • Occasional performance issues.

Top brands that use CCAvenue

  • · Bookmyshow, Airtel, Myntra.


Google Pay is an Indian digital payment service created by Google. It allows users to pay online securely from their bank accounts, credit cards, or debit cards linked with the mobile number registered in their smartphone’s settings without sharing any personal information such as card details and CVV code to complete transactions. 

Processing Fee

  • No fee


  • Completely free
  • Easy to use
  • Quick processing


  • Poor customer support

Top brands that use Google Pay

  • · Ola, Zomato, Uber.