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! In this post, we will go over the best ones to use for your business, as well as the reasons why you should or shouldn’t choose them.

But, why exactly do you need a payment processor, and how does it differ from a payment gateway? Here are the top 5 payment processors in India in 2021. 

 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.


Stripe is one of the top payment gateways in India that is suitable for any online business that wants a customized payment solution. It supports over 135+ currencies and payment methods. It also processes bitcoin and Automated Clearing House (ACH) transactions. 

Processing fee

  • 2% for cards issued in India
  • 3% for cards issued outside India. 


  • Better development resources and support than other payment processors.
  • Secure transactions.
  • Advanced reporting features
  • No setup, monthly or hidden fees.
  • Real-time fee reporting


  • UI could be better.

Top brands that use Stripe

· Google, Zoom, Lyft, and Slack.


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.


  • Complete transparency
  • Instant settlements
  • Supports unregistered businesses


  • UI could be better

Top brands that use Razorpay

· Zoho, IRCTC, Facebook, Nykaa.

CC Avenue

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 advance 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

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.


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