The Best Online Payment Processors in India

Any time you’ve spent or made money online, you’ve used some form of online payment processor. They’re incredibly useful tools to move money from one account to another, particularly for business owners, as the right payment processor can help streamline getting paid and track finances.

Businesses and individuals should always ensure they use a high-quality and reputable payment processor to handle their payments. But where do you start in choosing one?

This article will walk you through what a payment processor is, what you should look for when choosing one, and most notably, which payment processors are considered the best options in India.

What Is a Payment Processor?

A payment processor allows companies to accept payment from a wide variety of payment types, like credit cards or debit cards, and even different currencies within a single software system. Financial transactions ranging from placing an order online to accessing winnings from an online casino that allows same-day withdrawal requests all rely on payment processors to transfer funds.

These are useful in various business situations, including e-commerce businesses, brick-and-mortar businesses, and businesses that travel to pop-up events, markets, or anything else that moves around a great deal. They often integrate their own or third-party POS systems so businesses can easily accept payments through a single service provider.

Payment Processors vs Payment Gateways

Payment processors are often also discussed alongside payment gateways. While the terms are frequently used interchangeably, there are differences between the two.

Payment processors move the funds from one account to another, whereas payment gateways authorise these payments and verify payment details (such as verifying the credit card information entered for an online purchase) to move the funds. Generally, payment gateways are considered best for businesses that don’t physically require a credit card during payment.

Thankfully, many companies that offer payment processing also include payment gateway functions and vice versa, making it easier to find options that meet your needs.

Considerations for Choosing a Payment Processor

Since payment processors are essential to business operations, you want to be sure you’re using one that’s reliable and incorporates the features and capabilities you need. A few key things to take into consideration include:

• Where the company operates, and in what currencies
• How easy the processor is to set up and use (and if there’s support available should you run into any problems)
• The costs of using the processor and whether there are any hidden or additional fees for the services you need
• The security of the company
• The reputation of the company (you want to use a company that you and others feel confident inputting personal information into)

What Are the Best Payment Processors Available in India?

Because so many businesses and people need payment processors for their transactions, some company names immediately come to mind, and some are held in higher regard than others.

To help you sort through the names, the following list covers some of India’s best payment processor options. These offer similar capabilities and features that allow you to easily manage your financial transactions.

1. PayPal

Easily one of the most popular payment options worldwide, PayPal is a payment processor and gateway that allows you to collect many different forms of payments, including international payments. It’s a pioneer in the online finance industry (also referred to as the fintech industry), having started in 1998. It’s often praised for being easy to set up and use, with its main drawback being that it has slightly higher fees than other platforms.

2. PayU

PayU is both a payment processor and gateway that allows businesses to process payments from a wide range of payment methods. It has a substantial global presence in international payments since it operates in over 50 markets. For business owners, PayU offers a knowledge base that helps them not only make the most of the PayU service capabilities but also helps them grow their general financial knowledge.

3. Cashfree

Cashfree is a payment processing company based out of India (Bangalore, to be specific). It is recognized as one of the most affordable payment processing options available. It streamlines transaction processes with its integrated payment gateway. It doesn’t have the same international footprint as PayPal or PayU, but it has been developed to integrate with other payment processing platforms (like PayPal and Google Pay) available in different regions of the world, giving it a broader reach.

4. Razorpay

Razorpay is one of the top payment processors used and created in India. It was developed with a focus on ease of use and fast integration—and this focus has helped it grow rapidly. It allows for a wide range of payment methods, but one of its weaknesses is that it doesn’t specialise in international payments, which can lead to unsuccessful transactions on a global level.

5. Nimbbl

Nimbbl is a payment processor known for its ease of use, particularly from the customer’s perspective of a transaction, as it offers a one-click checkout that’s fast and easy for online shopping. It’s also been developed to easily integrate with other major players like Razorpay, PayU, and Cashfree to make it easier for customers. Unlike the other options on this list, this is not a payment gateway, so it would require a separate integration if this were needed.

Final Thoughts

These five payment processors are some of the best and most popular available in India. They have helped businesses small and large successfully manage their transactions, making them ideal options to consider when choosing the right payment processor for you.