Why Payment Gateway Choice Directly Impacts Revenue
India's digital payments breakdown (2024): UPI = 49%, Debit cards = 18%, Credit cards = 14%, Wallets = 12%, Net banking = 7%. If your store does not support UPI, you are potentially excluding half your customers. If it does not support wallets, another 12%. This is a conversion rate problem that costs real money every day.
UPI — The Non-Negotiable Foundation
UPI was launched by NPCI in 2016. It enables instant bank-to-bank transfers using UPI IDs (e.g., username@okicici) or QR codes. As of 2024, UPI processes over 10 billion transactions per month from 300+ million users.
For e-commerce, customers pay via UPI by entering their UPI ID and approving on their banking app, or scanning a QR code with any UPI app — PhonePe, GPay, Paytm, BHIM, or any bank app. UPI transactions are free for consumers. Merchants pay 0% on transactions under ₹2,000 and 0.9% above ₹2,000 through most gateways.
Razorpay — Best All-Around for Indian Sellers
Supported Payment Methods
- All UPI apps (GPay, PhonePe, Paytm, BHIM, all bank UPI apps)
- All credit and debit cards (Visa, Mastercard, RuPay, Amex)
- Net banking (100+ Indian banks)
- Wallets (Paytm, PhonePe, FreeCharge, Mobikwik, OlaMoney)
- EMI — credit card, debit card, and consumer finance (Bajaj Finserv, ZestMoney)
- International cards (with international payments enabled)
- Buy Now Pay Later (LazyPay, Simpl)
Razorpay Fees (2025)
| Payment Method | Fee |
|---|---|
| UPI under ₹2,000 | Free |
| UPI above ₹2,000 | 0.9% + GST |
| Domestic cards (standard) | 2% + GST |
| Domestic cards (premium/corporate) | 3% + GST |
| Net banking | 2% + GST |
| Wallets | 2% + GST |
| International cards | 3% + GST |
| Credit card EMI | 1.5–2% + GST |
Settlement: Standard T+3 business days. With Instant Settlement (additional 0.25%): T+1 or same-day. Activates within 24–48 hours with PAN and bank KYC.
Cashfree — Best for Fast Cash Flow
Cashfree's headline advantage is settlement speed. With their InstantSettlements feature, funds land in your bank account within minutes of a transaction for an additional 0.5% fee. Standard settlement is T+2. Slightly lower card fees (1.9% vs Razorpay's 2%) make it attractive for high-volume sellers. Best choice when working capital is tight and you need daily settlements to fund restocking.
Paytm Payment Gateway — The Tier-2 and Tier-3 Advantage
Paytm has 350 million registered users. While most have migrated to UPI, the Paytm Wallet remains popular in smaller Indian cities. If your target customers are in Tier-2 and Tier-3 India — cities like Surat, Patna, Indore, Coimbatore, Ludhiana — adding Paytm Wallet can meaningfully improve checkout conversion. Paytm PG charges 1.99% + GST. Best used as a secondary gateway alongside Razorpay.
How to Connect on BizzPocket (5 Minutes)
- Go to Settings → Payments in your BizzPocket dashboard
- Select your gateway (Razorpay, Cashfree, or Paytm)
- Paste your API keys from the gateway dashboard
- Click Save
BizzPocket charges zero additional transaction fee on top of the gateway's standard rates. No plugin, no developer, no extra monthly cost.
GST on Gateway Fees — The ITC Advantage
All gateway fees attract 18% GST. If your business is GST-registered, you can claim Input Tax Credit (ITC) on this GST and set it off against your output GST liability.
Example: On a ₹10,000 transaction at Razorpay 2% — you pay ₹200 fee + ₹36 GST = ₹236 total deducted. If you claim ITC of ₹36, your effective processing cost is ₹200. For GST-registered businesses, this is a 15% reduction in effective processing cost.
Which Gateway Should You Choose?
| Your Situation | Best Choice |
|---|---|
| Starting out, want simplest setup | Razorpay |
| Cash flow critical, need fast settlements | Cashfree |
| Selling in Tier-2 and Tier-3 cities | Razorpay + Paytm |
| High volume, want lowest card fees | Cashfree |
| International customers | Razorpay (international enabled) |