Best Payment Gateways for Startups in India (2026)
The best payment gateways for startups in India in 2026 are Razorpay, Skydo, Cashfree, PayU, Easebuzz, PhonePe, Stripe, Instamojo and PayPal.
Razorpay ranks first for collecting from Indian customers, with the widest UPI, card and netbanking coverage. Skydo ranks second because it is the cheapest way to receive money from overseas clients, at a flat fee with no FX markup and a free FIRA on every payment. Cashfree ranks third on domestic cost, and PayPal ranks last because its all-in cost on foreign revenue approaches 8%.
The list mixes two different kinds of tool on purpose. A domestic gateway is built for Indian checkouts, and a cross-border collection account is built to receive invoiced revenue from abroad. Each option below is tagged so you can tell which is which, because picking the wrong type is the expensive mistake, not picking the wrong brand.
The right answer depends on where your revenue comes from. Most startups end up running one of each.
Domestic Gateway or Cross-Border Account: Which One Do You Need?
These are two different products that founders shop for as if they were one. The difference shows up in what they cost, what paperwork they produce and who can use them.
| Domestic payment gateway | Cross-border collection account | |
|---|---|---|
| What it does | Takes UPI, card and netbanking payments at your checkout | Gives your overseas client local bank details to pay into |
| Typical cost | ~1.75% to 2% + 18% GST, UPI often cheaper | A flat fee of $19 to $29, or around 1%, with little or no FX markup |
| Cost on foreign revenue | 3% to 4.4% plus a conversion charge | The same flat fee, whatever the currency |
| Settlement | T+1 to T+3 | Within 24 to 48 hours |
| Paperwork | GST invoice | FIRA on every payment, purpose code filed for you |
| Regulated as | RBI payment aggregator | RBI Payment Aggregator - Cross Border (PA-CB) |
| Who it suits | Anyone selling to Indian customers | Anyone invoicing clients abroad |
If your customers click Pay on your site, you need a gateway. If you send an invoice and wait for a wire, a gateway is the wrong tool and the most expensive way to get paid. Startups with both kinds of revenue run both.
The 9 Options Compared at a Glance
Here is each option ranked, tagged by type, with what sets it apart and who it suits.
| # | Platform | Type | Key differentiator | Best for |
|---|---|---|---|---|
| 1 | Razorpay | Domestic, plus international cards | The widest Indian method coverage with the best developer tools | The default when your customers pay from India |
| 2 | Skydo | Cross-border | Flat fee with zero FX markup and a free FIRA on every payment | Startups invoicing overseas clients |
| 3 | Cashfree | Domestic, plus collections | Among the lowest domestic rates, with strong payouts | Cost-sensitive domestic volume and vendor payouts |
| 4 | PayU | Domestic | 150+ payment methods and enterprise fraud tooling | Startups past product-market fit scaling domestic volume |
| 5 | Easebuzz | Domestic | Split settlements, EMI and sector-specific flows | EdTech, SaaS and marketplaces |
| 6 | PhonePe PG | Domestic | UPI-first scale from the app most Indians already use | Mobile-first D2C where UPI dominates |
| 7 | Stripe | Cross-border cards | The best developer toolkit for subscriptions and global checkout | Global SaaS with an engineering team |
| 8 | Instamojo | Domestic | No-code payment links with nothing to set up | Solo founders validating an idea |
| 9 | PayPal | Cross-border | The method most overseas clients already have | Clients who refuse every other option |
A differentiator only shows where a platform stands out. The comparisons below cover cost, settlement, onboarding and compliance.
How Do They Compare on Cost and Settlement?
Domestic rates sit in a narrow band, so the real spread shows up on foreign revenue, where the conversion charge does more damage than the headline fee.
Collecting from Indian customers
| Platform | Standard rate | UPI | Settlement | Pricing published |
|---|---|---|---|---|
| Razorpay | ~2% + 18% GST | Zero MDR on person-to-merchant | T+2 | Yes |
| Cashfree | From ~1.75% to 1.95% + GST | Zero MDR on person-to-merchant | Instant to T+1 | Yes |
| PayU | ~2% + GST; 3% for AmEx, Diners and EMI | Zero MDR on person-to-merchant | T+2 | Yes |
| Easebuzz | From ~1.5% to 1.75% | Zero MDR on person-to-merchant | T+1 | Yes |
| PhonePe PG | Custom, cards around 2% | Zero MDR on person-to-merchant | T+1 to T+2 | No |
| Instamojo | ~5% + ₹3 + GST on its free plan | Included in the plan rate | T+3 | Yes |
UPI carries no MDR on person-to-merchant transactions, so your blended rate depends on your UPI share more than on the headline percentage. A "2%" gateway is really about 2.36% once GST is added.
Receiving from overseas clients
| Platform | Up to $2,000 | $2,001 to $10,000 | Above $10,000 | FX markup | Settlement |
|---|---|---|---|---|---|
| Skydo | $19 | $29 | 0.3% | Zero | Within 24 hours |
| Razorpay MoneySaver | 1% on bank transfers | 1% on bank transfers | 1%, custom for high ticket sizes | Zero on bank transfers | Within 24 hours |
| Cashfree Global Collections | ~1% to 1.5% (estimate, third-party) | ~1% to 1.5% (estimate, third-party) | Not available, capped at $10,000 per payment | Not disclosed | INR within 48 hours |
| Stripe | 4.3% on international cards | 4.3% on international cards | 4.3% on international cards | 2% on conversion | 2 to 5 days |
| PayPal | 4.4% + $0.30 | 4.4% + $0.30 | 4.4% + $0.30 | 3% to 4% (estimate) | 1 to 3 days, up to 5 |
Fees exclude 18% GST, which most platforms add and GST-registered startups can usually claim back. Estimates are labelled where a platform publishes no rate. Checked October 2026.
How to read these tables
- Start with your revenue mix. Domestic rates differ by about 0.5 points, while the gap on foreign revenue runs to 5 points or more.
- Then check the conversion charge, not just the fee. Stripe and PayPal each add one on top of a percentage, which is what takes their all-in cost towards 6% to 8%.
- Then check the caps. Cashfree's collection account stops at $10,000 per payment, so larger invoices need another route.
- Then add GST. It applies to the platform fee on both sides, so compare the landed cost rather than the sticker rate.
What Foreign Revenue Actually Costs: A Worked Example
A Bengaluru SaaS startup bills one US client $5,000 a month, and lands a $25,000 annual contract. Here is what each route costs on those two payments, before GST.
| Platform | $5,000 invoice | $25,000 invoice | Cost on $85,000 a year |
|---|---|---|---|
| Skydo | $29 | $75 | ~$423 |
| Razorpay MoneySaver | $50 | $250 | ~$850 |
| Cashfree Global Collections | ~$50 to $75 | Not available, capped at $10,000 | n/a |
| Stripe | ~$315 | ~$1,575 | ~$5,355 |
| PayPal | ~$385 | ~$1,925 | ~$6,545 |
The annual column assumes twelve $5,000 invoices plus one $25,000 contract. Stripe and PayPal include their conversion charges. None of these platforms charges a subscription, so every figure is per-payment cost added up.
What this tells you
On the same $85,000 of foreign revenue, the gap between the cheapest and the most expensive route is over $6,000 a year. That is a junior hire, lost to a line item most founders never see itemised.
The pattern is the fee model, not the brand. A percentage keeps taking more as the invoice grows, while a flat fee stops. On the $25,000 contract, Skydo charges $75 and PayPal charges around $1,925 for moving the same money.
This only applies to invoiced revenue. If that same startup sells subscriptions through a checkout, a card gateway is the only tool that works, and the 4.3% is the price of accepting cards at all.
How Do They Compare on Onboarding and Support?
For a startup this matters more than for anyone else. The cheapest platform you cannot get approved on is worth nothing, and a payment held during a compliance review at month end is a payroll problem.
| Platform | Getting started | What you need | Support |
|---|---|---|---|
| Razorpay | Online onboarding, live in days | PAN, GST where applicable, bank proof, website or app | Dashboard tickets; chat or callback for selected users; phone call within 2 hours on escalations |
| Skydo | Online account in minutes | Business KYC; stricter name-matching on the first payment | Email, phone and a dedicated account manager |
| Cashfree | Standard merchant KYC; sales-led for collections | Business documents, and a pricing conversation for collections | Named account manager on the international product |
| PayU | Heavier merchant onboarding | Registered Indian entity, PAN, GST where applicable, current account | Dashboard tickets and email through PayU Assist, with a 24/7 chatbot; no standard merchant phone line |
| Easebuzz | Online onboarding | Business KYC | Dedicated support agents, with 24/7 cover in Hindi and English |
| PhonePe PG | Online onboarding | Business KYC | Merchant support through your account, with a published grievance and nodal officer escalation path |
| Stripe | Invite-only for new Indian signups since May 2024 | A request through sales | Email and documentation, no India-based team |
| Instamojo | The fastest here, no website needed | PAN and bank account | Email and help centre, with no phone line |
| PayPal | Quick signup | Email and bank account | Message Centre, phone or chatbot via the Contact page |
How to read this table
- Start with whether you can sign up at all. Stripe is invite-only in India, so unregistered or very early founders are often out at this step.
- Then look at what you need ready. A gateway usually wants a live website or app; a collection account wants your invoice and contract.
- Then check first-payment friction. Strict checks at onboarding are good news, because those platforms hold fewer payments later.
- Then check how you reach a person. A phone number or an account manager beats a ticket form on the day a payment is stuck.
How Do They Compare on Compliance?
Domestic payments are simple: you raise a GST invoice and the gateway settles to your bank. Foreign revenue is where startups get caught, because you need proof the money came from abroad against an export before you can claim a GST refund.
| Platform | RBI status | Proof of foreign receipt | Purpose code filed |
|---|---|---|---|
| Razorpay | Payment aggregator, plus final PA-CB | FIRC automated within 24 hours of settlement on MoneySaver | Yes |
| Skydo | Final PA-CB, inward and outward | Free FIRA, instant, on every payment | Yes |
| Cashfree | Payment aggregator, plus final PA-CB, the first holder in July 2024 | eFIRS the next working day from its AD-1 partner bank | Yes |
| PayU | Integrated authorisation across online, offline and cross-border | Varies by product | Yes on international flows |
| Easebuzz | Full authorisation across online, offline and cross-border, received November 2025 | Varies by product, as cross-border is newer here | Yes on international flows |
| PhonePe PG | Final online payment aggregator authorisation | Domestic only | n/a |
| Stripe | Domestic payment aggregator, no PA-CB | Through a partner-bank workflow, not automatic | Collected at checkout |
| Instamojo | Its payment aggregator application was returned by the RBI, so confirm its current arrangement before you rely on it | Domestic only | n/a |
| PayPal | Online payment aggregator, plus in-principle PA-CB for exports | Weekly, not per payment | Yes |
Card payments settled by the networks sit outside the PA-CB framework, which is why Stripe operates on a domestic licence.
How to read this table
- Start with whether you have foreign revenue at all. If every customer is Indian, none of this applies and you pick on cost and UPI success rate.
- Then check whether the document is automatic. Chasing proof of receipt is the most common complaint among exporters, and it either arrives on its own or it does not.
- Then check whether it is per payment. A weekly summary means somebody reconciles payments to invoices by hand at month close.
- Then check the licence. Final PA-CB authorisation means the RBI has cleared the platform's capital, technology and audit requirements. In-principle approval means the decision is still pending.
The 9 Options Reviewed in Detail
Every option here solves a slightly different problem. Here is what each is like to run a startup on, and where you will hit limits.
1. Razorpay
Best for: Startups collecting from Indian customers.
Type: Domestic gateway, plus international cards and a separate export account
Razorpay is the default first gateway for most Indian startups, with the deepest method coverage and the best developer experience in the category.
Pros:
- Nearly every Indian payment method within days of onboarding, including UPI, cards, netbanking, wallets and EMI.
- Strong documentation, SDKs and a dashboard your finance person can actually use.
- The ecosystem grows with you, through payouts, subscriptions and a separate MoneySaver Export Account at 1% with no FX markup.
Cons:
- 2% plus GST becomes a real line item as domestic volume grows.
- International card acceptance costs 3% plus a conversion charge, so it is not the cheapest route for foreign revenue.
Choose it if: Your customers pay from India and you want one platform that will still fit in two years.
2. Skydo
Best for: Startups invoicing overseas clients.
Type: Cross-border collection account
Skydo is an RBI-authorised cross-border payments platform built for Indian exporters. For a startup with foreign revenue, its advantage is a fee that stops growing as invoices grow, with the export paperwork issued on every payment.
Pros:
- A flat fee you know before you invoice: $19 up to $2,000, $29 from $2,001 to $10,000 and 0.3% above that.
- No FX markup, so conversion runs at the live mid-market rate.
- A free FIRA on every payment, with purpose codes filed for you, so GST refunds do not stall.
- Your client pays local account details in their own country instead of raising an international wire.
Cons:
- It is not a checkout. For UPI and card payments from Indian customers you still need a domestic gateway alongside it.
- A flat fee is a high percentage on a small invoice, so frequent sub-$500 receipts cost more here than on a percentage platform.
Choose it if: A real share of your revenue arrives from clients abroad by invoice.
3. Cashfree
Best for: Cost-sensitive domestic volume and heavy payouts.
Type: Domestic gateway, plus collections
Cashfree competes on price and payouts, and was the first company in India to receive a PA-CB licence in July 2024.
Pros:
- Domestic rates from about 1.75%, among the lowest here.
- Instant and T+1 settlement options, which matter when runway is tight.
- Genuinely strong bulk payouts if you pay vendors, sellers or creators.
Cons:
- Its collection account caps each payment at $10,000, so larger invoices need another route.
- Collections pricing is not published, so your rate depends on a sales conversation.
Choose it if: You want the lowest domestic rate, or you disburse money as often as you collect it.
4. PayU
Best for: Startups past product-market fit scaling domestic volume.
Type: Domestic gateway
PayU brings enterprise-grade coverage and risk tooling, suited to businesses that have outgrown a lightweight setup.
Pros:
- Over 150 payment methods, so almost nothing a customer tries will fail for lack of support.
- Mature fraud and risk controls at higher volumes.
- Recurring billing built for scale.
Cons:
- Onboarding and support are heavier than lighter tools aimed at early teams.
- AmEx, Diners and EMI are priced at 3%, above the standard 2%.
Choose it if: Volume justifies enterprise features and you want maximum method coverage.
5. Easebuzz
Best for: EdTech, SaaS and marketplaces needing split flows.
Type: Domestic gateway
Easebuzz competes on rate and on vertical features other gateways treat as add-ons.
Pros:
- Rates from about 1.5% to 1.75%, at the low end of the market.
- Split settlements to multiple parties, sub-merchant flows and EMI plans out of the box.
- T+1 settlement as standard.
Cons:
- A smaller ecosystem and fewer integrations than the top three.
- No cross-border collection, so foreign revenue needs a separate tool.
Choose it if: You need installments or split payouts specifically, at a competitive rate.
6. PhonePe Payment Gateway
Best for: Mobile-first D2C where UPI dominates.
Type: Domestic gateway
PhonePe brings UPI-first scale to checkout, backed by the app most of your customers already have open.
Pros:
- Excellent UPI reliability and success rates.
- Real-time to T+1 settlement.
- Brand familiarity at checkout, which helps conversion.
Cons:
- A newer gateway product, so some reporting and plugin features are still maturing.
- Pricing is custom, so you cannot budget from a public page.
Choose it if: UPI is most of your revenue and you want the strongest rails for it.
7. Stripe
Best for: Global SaaS with an engineering team.
Type: Cross-border cards
Stripe is card-first infrastructure built for checkout and recurring billing, with the best developer tooling in the category.
Pros:
- Deep APIs, subscriptions, metered billing, split payments and a large app ecosystem.
- Multi-currency checkout for customers anywhere.
- No setup or monthly fees on pay-as-you-go pricing.
Cons:
- Around 6% all in on international cards once the 4.3% fee, 2% conversion and GST are added.
- New Indian signups have been invite-only since May 2024, and there is no India-based support team.
- Proof of foreign receipt comes through a partner-bank workflow rather than automatically.
Choose it if: You sell subscriptions through a checkout and the developer experience is worth the premium.
8. Instamojo
Best for: Solo founders validating an idea.
Type: Domestic gateway
Instamojo removes every fixed cost and setup barrier, which makes it the right first tool before you have a product to integrate with.
Pros:
- No-code payment links, so you can take a payment today with no website.
- No setup or annual fee on its entry plan.
- The simplest onboarding here.
Cons:
- Around 5% plus ₹3 on its free plan, far above a standard gateway.
- T+3 settlement, and no international support at all.
Choose it if: You are pre-revenue and need a payment link this afternoon.
9. PayPal
Best for: Overseas clients who won't use anything else.
Type: Cross-border
PayPal is the method most international clients recognise, and that familiarity is its remaining advantage.
Pros:
- Your client already has an account, so there is nothing for them to set up.
- Cards are covered, so a client without a PayPal account can still pay.
- Signup is quick.
Cons:
- The highest all-in cost here, at 4.4% plus a fixed fee, a 3% to 4% conversion charge and GST.
- Proof of receipt is issued weekly, not per payment, which slows reconciliation.
- Holds and reviews can freeze funds temporarily.
Choose it if: One client insists on it. Move everyone else to a collection account.
How We Ranked These
We evaluated each option on six factors, ordered by what a startup feels first, and checked every figure against the platform's own site, using independent sources only where a platform publishes nothing.
How we ranked them
True landed cost leads, because it applies to every transaction and because the conversion charge on foreign revenue is usually bigger than the visible fee. Onboarding comes next, which matters more for startups than for anyone else: the cheapest platform you cannot get approved on is worth nothing. Settlement speed follows, since money in transit is runway. Method coverage, compliance handling and developer experience separate platforms that are already close on the first three.
A lower rank does not make an option wrong. Instamojo is the right first tool for a founder with no product to integrate, and PayPal is the right answer when a client refuses everything else. They rank lower because they suit fewer startups, not because they fail.
What we compared
True landed cost: the platform fee plus GST domestically, and the fee plus FX markup on foreign revenue, tested at real invoice sizes.
Onboarding and approval: how fast you go live, what documents you need, and whether an early-stage or unregistered founder gets approved.
Settlement speed: how long money takes to reach your bank.
Method coverage and success rate: UPI reliability domestically, card networks and local rails abroad.
Compliance handling: GST invoicing, and whether proof of foreign receipt and purpose codes are automatic.
Developer experience: APIs, documentation, subscriptions, plugins and test mode.
Where our information comes from
Platform websites: every fee, settlement time and onboarding requirement was checked against the platform's own pricing and product pages in October 2026. Where a platform publishes no figure, the tables say so and estimates are labelled.
RBI status: the RBI does not publish a single, always-updated list of PA-CB holders, so licence status comes from RBI circulars, company announcements and press coverage.
Expert input: Skydo's cross-border payments and compliance specialists reviewed the analysis.
Pricing changes often, so confirm the current rate on each platform's site before you commit.
Which Setup Is Right for Your Startup?
Match the tool to where your revenue comes from, not to the brand. Most startups need one domestic gateway and, if they bill abroad, one cross-border account.
| Your startup | Domestic | Cross-border |
|---|---|---|
| D2C or ecommerce selling in India | Razorpay or Cashfree | Not needed |
| SaaS billing Indian customers | Razorpay or Easebuzz | Not needed |
| Services, agency or dev shop invoicing overseas clients | Not needed | Skydo |
| SaaS selling subscriptions globally | Razorpay for India | Stripe |
| EdTech, lending or a marketplace | Easebuzz or Cashfree | Skydo if you bill abroad |
| Mobile-first D2C, mostly UPI | PhonePe or Razorpay | Not needed |
| Solo founder validating an idea | Instamojo | PayPal, then switch |
| Mixed revenue from India and abroad | Razorpay | Skydo |
If you are choosing just one thing today
Start with where the next ₹10 lakh of revenue comes from. If it is Indian customers at a checkout, open a Razorpay or Cashfree account and move on. If it is an invoice to a client abroad, a gateway will cost you 3% to 6% of it, and Skydo will just cost you a flat fee.
Which payment gateway is best for startups in India?
Razorpay for collecting from Indian customers, because of its method coverage and developer tools. For revenue invoiced to clients abroad, a cross-border collection account like Skydo costs far less than any card gateway, since it charges a flat fee with no FX markup.
What does a payment gateway cost in India?
Do startups need a merchant account?
Can a startup accept payments without a website?
How long do gateways take to settle?
Is UPI free for merchants?
Can a startup use Stripe in India?
What do I need for foreign revenue that I do not need domestically?
Should a startup use more than one payment provider?
Which payment gateways are RBI authorised?
