10 eCommerce Payment Gateways to Choose for Your Business

Digital payments have witnessed a rise in India in the last few years. This has led to the introduction of numerous payment gateways each claiming to offer secure and reliable service. Choosing the right payment gateway among the various available options is crucial for the success of your eCommerce business. Making the correct choice enables seamless transactions and builds customer trust. However, with so many options, finding the perfect solution can be overwhelming. In this article, we have shared a list of top 10 eCommerce payment gateways, the way they operate, their functions, types and more. Read on to find out!

How Payment Gateways Operate?

Payment gateways act as the bridge between the customers, sellers and financial institutions during online transactions. When a customer selects a product and goes to checkout, they enter payment details like credit card information or use a digital wallet. This data is securely encrypted to protect against fraud. The payment gateway encrypts the customer’s information and sends it to the bank which forwards the details to the card network for authorization. The card network checks and verifies if sufficient funds are available. The bank then either approves or denies the request based on account balance and fraud checks.

Once the transaction is approved, the funds are transferred from the customer’s bank to the seller’s account. The customer receives a confirmation regarding the payment deduction.

Types of Payment Gateways

There are different types of eCommerce payment gateways to suit different business needs. Here’s a brief look at each of them:

1. Hosted Payment Gateways

They redirect customers to the service provider’s page for processing the payment. PayPal and Stripe come under this category. They are easy to integrate and reliable for businesses that are just starting out. They ensure complete security of data.

2. Self-Hosted Payment Gateways

In this type, businesses collect payment details on their own websites before sending them to the gateway provider. This gives more control over the payment process but requires robust security measures. Shopify Payments is an example of self-hosted payment gateway.

3. API-Based Gateways

API-based gateways such as Razorpay allow businesses to completely integrate the payment gateway into their website using APIs. The user stays on the website which gives a smooth payment experience.

4. Local Bank Integration

These gateways are directly linked to local banks. This makes them ideal for regional businesses. As the customers make online payments, they are redirected to the bank’s page to complete the process. Each bank offers different levels of control and user experience.

Essential Functions of Payment Gateways

Here’s a look at the main functions of eCommerce payment gateways:

1. Transaction Authorization

Payment gateways verify and authorize transactions. They check the customer’s payment details to ensure they have sufficient funds.

2. Data Encryption

 To protect sensitive information, such as credit card details and passwords, eCommerce payment gateways encrypt the data. This is necessary to ensure secure payments.

3. Fraud Detection

Gateways use tools such as CVV and address verification and conduct real-time monitoring to identify suspicious/ fraudulent activities.

4. Transfer of Funds

Payment gateways facilitate the transfer of funds from the customer’s account to the seller’s.

5. Reporting

Payment gateways provide detailed reports to help businesses. This helps them track sales performance.

Top 10 Payment Gateway

The top payment gateways in India are as follows: 

1. Razorpay

Razorpay is one of India’s leading payment gateways. It ensures secure processing and disbursing of payments and supports a broad range of payment methods. Known for its user-friendly interface and easy integration with e-commerce platforms, it is an apt choice for businesses of all sizes. Its advanced features include recurring payments, automatic reconciliations, and a customizable checkout process. Razorpay also offers RazorpayX, a full-stack banking solution.

2. Paytm

Paytm is highly popular in India, and it supports credit/debit cards, UPI, and Paytm Wallet payments. In addition to these payment options, it offers features like instant settlements, real-time transaction updates, and 24/7 support, making it widely trusted by businesses. Furthermore, it comes with robust fraud detection and security measures to ensure safe transactions.

3. CCAvenue

CCAvenue is well-known for its secure, multi-currency payment processing, which is ideal for international businesses. Moreover, its integration is flexible, supporting websites, mobile apps, and social media stores. Additionally, the platform offers advanced analytics, fraud detection, and customizable checkout experiences. With strong customer support and a focus on security, CCAvenue is a trusted choice for eCommerce payment solutions.

4. Cashfree

Cashfree is a rapidly growing payment gateway known for its fast processing. Additionally, it supports over 100 payment modes, including UPI, cards, and net banking, making it a great choice for businesses. One of Cashfree’s distinguishing features is its instant refunds and payouts, which significantly enhance customer experience and trust. Furthermore, the platform is easy to integrate with websites and mobile apps. Importantly, it adopts strict security measures and provides efficient customer support.

5. PayU

PayU is a versatile payment gateway trusted by businesses across various industries. It offers a smooth checkout experience with cards, UPI, wallets, and net banking support. PayU provides robust fraud prevention tools and easy integration for websites and mobile apps. The platform also supports recurring payments and EMI options. With real-time transaction monitoring and 24/7 customer support, PayU ensures reliability. It’s an ideal solution for businesses looking for both local and international payment options.

6. PayPal India

PayPal is a globally recognized payment gateway. It offers secure transactions and international payment support. While it comes with higher transaction fees than local gateways, PayPal is ideal for businesses with global customers. It supports payments via credit/debit cards and PayPal accounts. The platform’s easy integration and robust fraud prevention tools enhance its appeal. PayPal also offers seller protection. This makes it a secure option for sellers dealing with international buyers. However, its higher costs may be a drawback for smaller businesses.

7. EBS (E-Billing Solutions)

EBS offers secure and efficient payment solutions to businesses and is ISO27001-2013 certified. Known for its simple integration process, it ensures a smooth customer checkout experience. The platform also emphasizes security with advanced fraud detection tools and PCI DSS compliance. The eCommerce payment gateway provides multi-currency support and recurring billing options, which makes it suitable for international sellers.

8. PayKun

PayKun is a secure and user-friendly payment gateway solution that enables businesses to accept online payments through various methods. Moreover, it is easy to integrate and has no setup fees. Additionally, it provides strong encryption to safeguard transactions and establish trust among customers. Furthermore, PayKun’s dashboard offers insights into payment analytics, refunds, and transaction history, which helps you manage your finances better.

9. Instamojo

Instamojo is an all-in-one platform designed to support small and medium-sized businesses. It not only offers payment gateway services but also provides online store creation and marketing tools. Moreover, it allows you to collect payments via multiple channels. In addition, Instamojo offers instant onboarding and affordable transaction fees. Furthermore, it has built-in analytics for tracking sales and payments. With value-added features like invoice generation, link-based payments, and the ability to create online storefronts, Instamojo empowers businesses to grow their digital presence.

10. PhonePe

PhonePe lets users make quick and secure payments for utilities, shopping, and money transfers. With its user-friendly app, PhonePe supports services such as mobile recharges, bill payments, and mutual funds. It ensures robust security with two-factor authentication and encryption. As one of India’s most popular eCommerce payment gateways, it combines convenience and security.

Distinguishing Payment Gateways from Payment Processors

You may often confuse payment gateways and payment processors with each other. However, they serve distinct functions. Here is how they differ from one another:

Payment Gateway	Payment Processor
The payment gateway securely transfers payment information from the customer to the payment processor.	It moves funds from the customer’s bank to the merchant’s account to ensure the money is properly debited and credited.
It encrypts sensitive data and facilitates the approval or denial of transactions.	It works with banks and card networks to manage the actual transaction.
It provides different payment modes.	It ensures PCI compliance and software compatibility.
It shares the status of the transactions	It facilitates the payments
It is ideal for card-not-present (CNP) and eCommerce store transactions.	It is suitable for in-person and POS transactions.

Achieve Lightning-Fast Checkouts With SR Checkout

Shiprocket Checkout enables lightning-fast checkouts to provide a seamless payment experience for both buyers and sellers. By reducing friction during the payment process, Shiprocket Checkout allows businesses to minimize cart abandonment and enhance user satisfaction.

Its intuitive interface allows customers to quickly enter their payment details or use saved preferences. This feature speeds up the transactions significantly. Moreover, Shiprocket Checkout integrates with multiple payment options. This includes credit cards, digital wallets, and alternative payment methods,  increasing customer convenience. It is also known for its robust security protocols and data encryption. Thus, it empowers eCommerce businesses to deliver hassle-free and secure checkouts, which helps boost their conversions.

Conclusion

Choosing the right payment gateway is essential for the success of any eCommerce business. Fortunately, the various payment gateways shared above offer a range of features. They are not only secure but also easy to integrate and support multiple payment methods. Therefore, understanding the features, fees, compatibility, and terms associated with each option is necessary to identify which one fits your requirements.

Additionally, SR Checkout integrates with various payment gateways to facilitate transactions. It primarily focuses on optimizing the checkout flow and reducing cart abandonment by offering features like quick payment options, user-friendly interfaces, and powerful security measures. Ultimately, choose the eCommerce payment gateway that supports your business growth and enhances the shopping experience for your customers.