Top 5 Payment Gateway Service Providers in India – Small Business

Are you searching for the right payment gateway service provider for your business? Payment gateway service providers in India is increasing fast. The demand for an online transaction is increasing day by day. E-Commerce field is developing as the burning trend among the young entrepreneurs. Here we list down and compare the best payment gateway service providers in India.

Before we proceed let us first understand which important factors to consider in choosing the right payment gateway.

In the E-commerce site, one has to consider the following factors for their payment gateway.
1) Easy transaction for your customer.
2) Less commission.
3) Availability of many payment options.
4) Easy integration.
5) Refund and cash back policies.

You will also need to invest in fraud monitoring systems to reduce your liability. Your payment gateway can provide some help here. It will also be useful to explore some third party solutions here. Payment gateway service providers provide a great API for integration, there are plenty of code samples already available and their rates are quite competitive.

All payment gateways have an initial setup cost and then charge a small percentage of the transaction. Few have an annual maintenance cost (AMC) as well. The initial setup cost is a one time charge only and is mostly non-refundable. The annual maintenance 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.

List of Top 5 Payment Gateways in India

CC Avenue

In India, nearly 85% of Indian e-commerce merchants avail payment gateway services of CC Avenue. MakeMyTrip, Naukri, Myntra, Snapdeal among many others use CC avenue services.


Founded by Satyen Kothari and Jitendra Gupta, Citrus at present is one of the top payment gateway service providers in India. Airtel, Etihad, Healthkart, Localbanya among many companies use Citrus services in India.


E-Billing Solutions (EBS) established in the year 2005 is headquartered in Mumbai. EBS now is a fully owned subsidiary of Ingenico Group.


Basically, Direcpay is an arm of Times of Money (Times Group). DirecPay is one of the first Indian payment solutions providing a credit card payment gateway integrated with Debit Cards, Net Banking & Mobile payments along with a fast, reliable and secure passage for processing eCommerce payments. With some of the lowest fees in the market, DirecPay has some distinct advantages to drive your online business in India.


PayU is a global company owned by Naspers. With an impressive conversion rate of over 12%, Payubiz is a very popular payment gateway in India. Snapdeal, Ola, Foodpanda, Groupon are some of the companies among many are using Payu payment gateway services.

Below is the updated price comparison of the service providers mentioned here. Hope the comparison shown here will help in deciding the right service provider as per your startup needs.

Payment Gateway Service Providers Compared List:

Fees/providerCC AvenueCitrusEBSDirecpayPayu
Set upfees0-3000009599-239990-300006000-30000
Annual Maintenance Charges1200-36000240024002400
Maximum TDR5.50%2.753.7554.9
Lowest TDR for credit cards2.5%2%2.7522.75
Lowest TDR for Debit cards1.5%1%
Lowest TDR for Net Banking2.5%1.6%3.2522.75
Lowest TDR for Cash Cards3.6%03.25———3%

Did we miss out anything? We would like you to share your personal experiences about Indian Payment Gateway Service providers. Let us know which one is the best according to you.