Free Payment Gateway in India: Busting the Myth

All About Free Payment Gateways

With the availability of several payment sources including credit cards, debit cards, and UPI, most consumers are willing to buy things online. Because of this demand, businesses – both small and big, have started accepting payments online.

To sell online via a website or app, they need a suitable payment gateway and look at various features before selecting the right one.

While most payment gateways offer a wide variety of benefits, it’s their pricing plan that determines a business’s decision for final integration. If this strikes the right chord with your business, you would want to choose a free payment gateway for integration.

You might also have the following questions in mind:

  • Who offers a free online payment gateway in India?
  • Which payment gateway is free in India?
  • Which is the cheapest payment gateway for websites in India?
  • Which free Indian payment gateway is renowned for its features and benefits?
  • Is there any free payment gateway available for small businesses?

Simply put, many business owners do not know everything about different payment gateway charges, like MDR, interchange fee, and PSP fee. If you want a reliable payment solution for your online business, it is crucial to understand how a payment gateway works and how much price you should pay for it.

The lesser-known truth about free payment gateways

With the growth in online businesses in India, payment gateway integration using robust APIs and SDKs became the need of the hour in the recent past.

For businesses willing to start selling online at that time, a free payment gateway referred to the one having zero setup and maintenance costs.

However, with the advancements in digital payments technology, their business model changed over time. Nowadays, most payment gateways in India are available for integration with no setup or annual maintenance fees.

However, they ask for the service cost in terms of Merchant Discount Rate or MDR. It is a small percentage of the transaction amount captured by a business via a payment gateway.

You can better understand this with an example –

If a customer buys a product worth Rs. 2,000 from your business website and pays for it via a credit card, you have to pay a part of this transaction amount to the chosen payment gateway provider. Assuming the MDR related to credit card payments is 2%, you will receive Rs. 1960 into your linked bank account. The remaining Rs. 40 becomes the payment gateway fee.


While every business would want this fee to be zero, it is what payment gateway providers ask for to ensure secure and quick payment transfer. Payment gateway price comparison is integral to making the right selection. However, pricing should not be the only factor determining your decision.

Recommended Read: MDR, PSP Fee, Interchange Fee, and Other Payments Charges – Explained

If not a free payment gateway, which one should you choose?

Allowing your customers to pay you online is a safe way to keep the money flowing in. However, selecting the right payment gateway for your business requires you to follow a checklist of parameters.

Ideally, your payment gateway should:

  • Be easy to integrate and allow instant activation
  • Ensure security of payment transactions processed on your website or app
  • Support maximum payment sources – net banking, debit card, credit card, etc. to make it easier for your customers to pay you
  • Allow international payments with ease of currency conversion
  • Follow a quick payment settlement model to help you manage funds

After you have found payment gateways with all these features, then only you should look forward to comparing them in terms of pricing.

Earn more with Paytm Payment Gateway

If there is a payment gateway that has all the required features and is still available with the least MDR, it’s Paytm Payment Gateway. On one hand, consumers trust Paytm for secure online payments. On the other, businesses rely on Paytm Payment Gateway that offers various benefits to give wings to the online businesses.

With Paytm Payment Gateway, you will get:

  • Access to a plethora of payment sources, including Paytm Wallet and Paytm Postpaid
  • Quick and easy settlements (T+1) on business working days (excluding public holidays)
  • India’s most widely used Paytm Checkout loved by 330 million+ customers
  • Facility to provide EMI options and bank offers to increase average order value

Save Rs. 97,700 every month with 0% MDR on UPI

While other Indian payment gateways charge a certain fixed MDR on UPI transactions, Paytm Payment Gateway does not.

How does saving Rs. 97,700 every month sound to you with your online sales?

It is possible with Paytm Payment Gateway (assuming a monthly sales volume of Rs. 1 cr) with the increased adoption of UPI payment method.

Read More: The Real Benefit of 0% MDR on UPI with Paytm Payment Gateway

Paytm Payment Gateway Pricing At a Glance

Payment SourceMDR
UPI – Standard0%
Credit Cards1.99%
Rupay Debit Cards*0%
Paytm Wallet1.99%
Net Banking1.99%
International Payment Gateway2.8%

Watch Video on Free Payment Gateway

Recommended Read: What Makes Paytm Payment Gateway the Best in India?

The bottom line

A free payment gateway for websites or apps does not exist in general. Neither would you get significant benefits from selecting a payment solution that comes with hidden charges. The growth of your online business does depend on a highly satisfying payments experience, which you can deliver with Paytm Payment Gateway.


Sign up for Paytm Payment Gateway today!

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