Tips to Find The Best Payment Gateway For E-commerce in India

With a staggering rise of online shopping websites, the demand for the best payment gateway in India for e-commerce is also on the rise.

There are various reasons why finding the best payment gateway can get challenging. First, you need to have a fair understanding of how payment gateways work, current digital payment trends, and if the payment gateway you are speaking with offers those features.

If you are also looking for the best payment gateway for your company, this is where you will find the answer to all your questions.

5 reasons e-commerce companies are unhappy with their payment gateway

With tens and thousands of online shopping websites in the country, the search for the best payment gateway for e-commerce companies is always on. While they are already working with payment gateways, the satisfaction level is not up to the mark.

Here are a few reasons why merchants are always looking for a payment gateway that is better than their current one.

  1. Limited payment modes: Online companies need to provide their customers with all the payment modes – even the ones that aren’t common. While the usual payment modes like debit and credit cards, net banking, and UPI are integrated, they need more than just these. They want to offer their customers a wide variety of payment modes like Buy Now, Pay Later, wallet based payments, and making payments through payment and subscription links.
  2. Saved cards: Every online shopping company wants to let customers save their debit and credit cards to simplify their payment process. However, with the RBI’s tokenisation rules kicking in, they can’t save cards on their platform without tokenising customers’ sensitive card information.
  3. Custom checkout page: Strong brand positioning is very important for online companies. They put a lot of effort into making their branding tastefully visible all over their website. However, one webpage where e-commerce startups fail to put their branding is the checkout page. Most of the payment gateways don’t give the personalisation feature on the checkout page that these companies rightfully deserve.
  4. Analytics: After spending all the resources and time to grow the business, online businesses want to learn insights from their payment gateway such as customers’ payment patterns, monthly income, etc . Most of them don’t get any useful information that can be analysed and used later to generate revenue. Fortunately, a handful of payment gateways for e-commerce companies in India are able to generate rich analysis. 
  5. Customer support: A large number of digital companies suffer from poor customer support from payment gateways. Due to unsatisfactory customer support, a lot of them partner with multiple payment gateways in case one of them is facing server issues.

Features of the best payment gateway for e-commerce companies

When looking for the best payment gateway for e-commerce companies in India, it is advised that businesses prepare a few pointers to gauge each payment gateway.

Interesting Read: Create Payment Link & Collect Payments Without Website

Here are a few tips that online businesses can use when looking for the best payment gateway.

  • Simple integration

Integrating a payment gateway should neither take long nor should it require a separate team of software engineers to monitor it.

Ideally, the tech team should be able to complete the integration process based on a few lines of code. The payment gateway should provide technical support to the e-commerce company for integration.

Before zeroing on a payment gateway, online merchants should ask these questions:

  1. Does integration require any technical know-how?
  2. If yes, can the payment gateway help with the technicalities or will the company have to get a developer to do that?
  3. Is the payment gateway documentation easily available online?
  4. Are mobile SDKs available?
  5. Is plugin support available?
  • Pricing

This might sound like an obvious thing to state but there are various things to assess while reviewing the pricing of a payment gateway. Payment gateway charges are more complex than an online merchant would think.

On the face of it, it might look like the payment gateway is going to charge only the MDR (Merchant Discount Rate) to the e-commerce firm. But most likely there are going to be other hidden charges involved as well.

There is a caveat when companies are assessing payment gateways on their pricing strategy: don’t fall for the cheapest offer. Such payment gateways might later turn out to be inept in terms of their capabilities.

  • Hosted or non-hosted payment gateway

Payment gateways are divided into two types – hosted and non-hosted. The first one is more secure as it takes customers to the payment processor’s web page to complete the payment. Hence, hosted payment gateways are relatively more secure.

Non-hosted payment gateways allow buyers to enter their payment details on the website they are purchasing from. While these payment gateways are also secure, the onus of security falls on the merchant.

  • Mobile payment

As mobile penetration deepens in India, more and more customers prefer buying and paying for their purchases from smartphones. A report by Statista said that mobile commerce was valued at $38 billion in 2020.

Keeping this trend in mind, e-commerce companies should check if the payment gateway they are speaking with supports mobile payments. Not only that but their payment page and processes must be optimised for smartphones.

  • Instant refunds

This is a very crucial feature that all online businesses should enquire about. Over the years, as online shopping evolved in India, refunds have become a compulsory offering that every customer expects.

While many payment gateways claim that they process refunds, what they don’t say explicitly is the number of days it takes them to process refunds. Depending on the payment mode chosen by the customer, it takes anywhere between 3 days to a month for the refund to reach the customer.

Interesting Read: Types of Payment Gateway Integrations: Choose What’s Best

E-commerce companies are advised to find a payment gateway that can process refunds as soon as possible. The best payment gateway will have an instant refund process.

Why Paytm Payment Gateway is the best solution for e-commerce companies?

Paytm Payment Gateway is the best payment gateway for e-commerce companies in India.

Right from support for all payment modes including Buy Now, Pay Later (Paytm Postpaid), and offer non-website payment methods like Payment Links, to letting merchants customise checkout pages, Paytm PG does it all.

Here are five features that make it the best payment gateway:

  • Next-day settlement: Unlike other payment gateways that take 3-5 business days to clear settlements, Paytm Payment Gateway does it in one business day. With a guaranteed T+1 settlement on business days, Paytm PG is one of the fastest in the industry to process payments for e-commerce merchants.
  • SDK integration: Online businesses can integrate Paytm Payment Gateway using our developer-friendly SDK (Software Development Kit). With SDK integration, merchants can create a custom checkout page with their own branding presets. Customers are more likely to go ahead with the payment when they see the same brand’s colours and logos on the checkout page.
  • Subscription payments: With Paytm Payment Gateway, e-commerce companies can offer subscription models to customers. Our subscription payments feature allows customers to pay for their subscriptions automatically without having to remember every month to renew subscriptions.
  • Multiple currency support: Online businesses can rely on Paytm Payment Gateway to accept money from global customers as we support multiple currencies on the platform. There is no need for any additional API integration to start accepting payments from customers around the world. The real-time currency conversion feature will make it easier for customers to understand what price they are paying.
  • Easy payouts: Paytm Payment Gateway has made it really simple for online merchants to make payments to their vendors, employees, and other utility bills. Paytm Payouts makes it easy for digital companies to make recurring payouts on time as well as track them from the Paytm dashboard.


Payment gateways are very crucial for e-commerce companies as they can increase conversions, enhance customer experience, and ensure liquidity.

There are a lot of factors to consider when looking for the best payment gateway for e-commerce companies in India. Paytm Payment Gateway comes packed with all the features that an online business needs.

Switch To Paytm Payment Gateway Today

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