Accepting digital payments reliably is now a must-have for small and medium-sized businesses (SMBs) in India, not a luxury. Customers expect seamless UPI, card, wallet, and net banking options whether you’re selling from a website, WhatsApp, Instagram, or a simple invoice link. Choosing the right payment gateway affects not only conversions but also cash flow, reconciliation, customer trust, and long-term growth.

In this guide, we’ll walk you through the most reliable payment gateway providers for SMBs in India, with a clear view of why they matter, what they offer, and how they differ. All recommendations are grounded in trusted industry sources and current usage patterns in the Indian market.

What Small Businesses in India Should Look For

Before we dive into specific providers, here are the key things SMBs should prioritise when evaluating gateways:

• Uptime and success rate: The percentage of transactions that complete without errors
  
  

• Range of payment options: UPI, credit/debit cards, net banking, wallets, BNPL etc.
  
  

• Ease of integration: Plugins, APIs, or non-technical payment links
  
  

• Onboarding speed: How quickly you can go live
  
  

• Support & reliability: Accessible merchant support when you need help
  
  

• Fees & settlement time: Transparent charges and predictable cash flow
  
  

• Security & compliance: PCI DSS, encryption, fraud tools, RBI guidelines
  
  

• Scalability: Ability to handle more volume and new features over time
  
  

1. Razorpay - Widely Used & Startup-Friendly

Overview: Razorpay stands out as one of the most popular and reliable payment gateways for small businesses and startups in India. It supports over 100 payment modes including cards, UPI, net banking, wallets and more, all through a unified interface. 

Why SMBs like it

• Easy setup and onboarding

• Multiple integration options (payment links, APIs, plugins)

• Real-time dashboards and reconciliation

• Works for both online stores and service-based businesses

Good fit for:
E-commerce sites, service businesses, app-based checkouts, marketplace sellers.

What to note:
Fees are competitive and tiered, and there’s robust documentation for developers and non-technical users alike.

2. Paytm Payment Gateway - Broad Indian Acceptance

Overview: Paytm’s payment solution is especially strong in the Indian market due to its vast user base. It supports UPI, cards, wallets, net banking, and more, with zero setup fee and no annual maintenance charges in many plans.

Why SMBs like it

• Familiar checkout experience for Indian customers

• Simple onboarding and widespread acceptance

• Supports digital wallets and Paytm-specific payment methods

Good fit for:
Retailers, local businesses, marketplaces, and SMBs with high UPI usage.

What to note:
Even if your customers don’t use the Paytm wallet, they can still pay via more than 100 payment sources.

3. Cashfree Payments - Strong Success Rates & Speed

Overview: Cashfree is known for its high payment success rates, fast settlements, and extensive UPI routing options. It supports 180+ payment modes including cards, net banking, wallets, BNPL, and international cards.

Why SMBs like it

• Instant settlement options

• Advanced routing logic to reduce failed transactions

• Developer-friendly APIs

Good fit for:
E-commerce stores, subscription businesses, and mid-size SMBs needing fast settlement.

What to note:
Settlement cycle and fees vary based on plans chosen; on-demand settlement can help with cash flow.

4. PayU India - Established with Scale

Overview: PayU is one of India’s longest-standing payment gateway providers, trusted by over 500,000+ merchants nationwide. It offers a full suite of online payment options across UPI, cards, wallets, and more.

Why SMBs like it

• Good blend of local payment support and global reach

• Simple dashboard and reporting

• Competitive pricing

Good fit for:
Small businesses that anticipate growth or eventual cross-border transactions.

What to note:
PayU also offers additional merchant services that help with working capital and growth as businesses scale.

5. CCAvenue - Very Broad Payment Option Support

Overview: One of India’s oldest payment gateway providers, CCAvenue offers 200+ payment options, including cards, UPI, net banking, wallets, and international currency processing.

Why SMBs consider it

• Wide global and domestic payment acceptance

• Multi-currency support for businesses selling overseas

• Customisable checkout experience

Good fit for:
Businesses with diverse customer geographies or those planning to enter international markets.

What to note:
Onboarding and setup can be more detailed compared to some newer gateways, but the flexibility is strong.

Optional/Additional Choices to Consider

These are reliable gateways worth exploring if your business has specific needs:

Easebuzz

Offers PCI DSS-compliant secure checkout with UPI, cards, net banking, and EMIs, good for growing SMBs.

PhonePe Payment Gateway

Emerging as a solid choice for UPI-centric customers, with smart checkout features and AutoPay for recurring payments.

Stripe (Global Option)

While not India-native, Stripe is frequently chosen by businesses with international sales due to its powerful APIs and global reach. 

How to Choose the Right Payment Gateway for Your Business

Instead of looking for the “best” gateway, think in terms of fit for purpose:

1. Where are your customers?
   If your customers prefer UPI and Indian wallets, pick a gateway that excels in those modes (e.g., Paytm, PhonePe).
   
   

2. How will you accept payments?
   Simple payment links may be all you need initially. If you’re running an online store or app, plugins and APIs become priority.
   
   

3. What’s your volume and growth plan?

   Gateways like Razorpay and Cashfree can scale easily as sales grow.
   
   

4. Support and reliability matter: Good merchant support reduces friction and ensures faster issue resolution.
   
   

5. Security and compliance must be non-negotiable: All gateways above follow industry security standards like PCI DSS.
   
   

Final Thoughts

There’s no one-size-fits-all payment gateway for every SMB. The most reliable providers in India combine wide payment acceptance, easy onboarding, strong uptime, and clear support channels. For many small businesses, starting with a setup that supports UPI plus cards and wallets, and then expanding to more features as you grow, is often the most practical path.

Once you’ve decided on a provider, the focus shifts to reducing cart abandonment, improving payment success rates, and ensuring that your customers have a smooth and secure payment experience from end to end.