# Best payment gateway with lowest fees India 2026 · 5 Jul
> What ChatGPT, Gemini, and Google AI Mode said about: Best payment gateway with lowest fees India 2026. Brands named, sources cited, sentiment per engine on…

Canonical URL: https://cite.solutions/state-of-ai-india/payment-gateways/reports/2026-07-05/p/6
Source: Cite Solutions (cite.solutions)
Published: 2026-07-05
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[← B2B Payments & Business Banking · 5 July 2026](/state-of-ai-india/payment-gateways/reports/2026-07-05)One prompt · three engines

Prompt 06 · 5 July 2026

# Best payment gateway with lowest fees India 2026

Three engines were asked the exact prompt above on 5 July 2026. Below is the verbatim answer each one gave, the brands it named, and the URLs it cited.

ChatGPTgpt-5-5

Answered 5 July 2026

If your priority is \*\*the lowest transaction fees\*\* while still getting reliable service in India, these are the strongest choices in 2026: | Payment Gateway | Typical Domestic Fee\* | Best For | Notes | |---|---:|---|---| | Cashfree Payments | \*\*1.6%–1.9%\*\* (promotional/volume pricing available) | Startups, e-commerce, SaaS | Often the lowest pricing for new merchants; strong UPI and payouts. | | Razorpay | \*\*2.0%\*\* | Most businesses | Excellent APIs, plugins, and merchant support. | | PayU | \*\*2.0%\*\* | Growing online stores | Good payment success rates and EMI support. | | Paytm Payment Gateway | Around \*\*1.99%\*\* | SMEs and omnichannel businesses | Fast settlements and strong UPI ecosystem. | | CCAvenue | Around \*\*2%+\*\* | Enterprise merchants | Large payment method support, negotiable pricing. | \\\*Actual fees depend on payment method, business category, monthly volume, and negotiated pricing. GST is generally charged on gateway fees. ### Best choice by business type - \*\*Lowest fees:\*\* Cashfree Payments (especially if you qualify for promotional or volume pricing). - \*\*Best overall:\*\* Razorpay—slightly higher cost than the cheapest offers but excellent reliability, integrations, and developer experience. - \*\*Best for high-volume merchants:\*\* Negotiate with Cashfree, Razorpay, or PayU. Merchants processing several lakhs or crores per month can often secure rates below the standard published pricing. - \*\*Best for international payments:\*\* Cashfree and Razorpay support international payments, while Stripe remains limited for new Indian businesses and is not the default choice for domestic UPI acceptance. ### My recommendation - \*\*New startup or small business:\*\* \*\*Cashfree Payments\*\* if you qualify for the lower introductory pricing. - \*\*Most businesses:\*\* \*\*Razorpay\*\* for the balance of price, reliability, and features. - \*\*Enterprise or high-volume business:\*\* Request custom quotes from \*\*Cashfree\*\*, \*\*Razorpay\*\*, and \*\*PayU\*\* before deciding, as negotiated rates can differ significantly. If you tell me: - your business type (e-commerce, SaaS, services, coaching, etc.), - expected monthly transaction volume (₹1 lakh, ₹10 lakh, ₹1 crore+), - and whether you need international payments, I can recommend the most cost-effective gateway for your specific use case.

Brands named

[Cashfree](https://cashfree.com "Visit Cashfree")[Razorpay](https://razorpay.com "Visit Razorpay")[PayU](https://payu.in "Visit PayU")[Paytm Business](https://paytm.com "Visit Paytm Business")

Sources cited · 4

* [Best payment gateways for small businesses in India (2026)wise.com/in/blog/best-small-business-payment-gateway](https://wise.com/in/blog/best-small-business-payment-gateway?utm%5Fsource=chatgpt.com)
* [Low Cost Payment Gateway in Indiarazorpay.com/blog/low-cost-payment-gateway-in-india-the-complete-decision-guide](https://razorpay.com/blog/low-cost-payment-gateway-in-india-the-complete-decision-guide/?utm%5Fsource=chatgpt.com)
* [Best Payment Gateways in India for Dropshipping (2026)qikink.com/blog/best-payment-gateways-india](https://qikink.com/blog/best-payment-gateways-india/?utm%5Fsource=chatgpt.com)
* [Best Stripe Alternatives for Global Payments in 2026xflowpay.com/blog/stripe-alternatives](https://www.xflowpay.com/blog/stripe-alternatives?utm%5Fsource=chatgpt.com)

Geminigemini-3-flash

Answered 5 July 2026

When evaluating the \*\*best payment gateway with the lowest fees in India\*\*, you need to look at both the sticker price (the Transaction Discount Rate or TDR) and hidden elements like Setup Fees and Annual Maintenance Charges (AMC). Most gateways waive setup and maintenance costs, charging purely on a per-transaction basis. The most cost-effective platforms offering the lowest operational fees include the following: --- ## 1\. Cashfree Payments Cashfree is widely regarded as one of the most aggressive competitors regarding pricing for domestic transactions, especially for growing businesses and startups. \* \*\*Transaction Fee (TDR):\*\* \~1.6% to 1.90% per transaction (one of the lowest base rates in the market). \* \*\*Setup & Annual Fees:\*\* ₹0 \* \*\*Why choose it:\*\* It balances robust API features with lower percentage cuts than legacy providers. It also supports over 100+ currencies for cross-border needs. ## 2\. PayKun If you want flat-rate, predictable pricing without negotiating based on volume, PayKun is an excellent budget choice. \* \*\*Transaction Fee (TDR):\*\* Flat 1.75% + GST on standard domestic transactions. \* \*\*Setup & Annual Fees:\*\* ₹0 \* \*\*Why choose it:\*\* It is popular among NGOs, small eCommerce setups, and freelancers because of its minimal documentation barrier and straightforward pricing structure. ## 3\. Easebuzz Easebuzz specifically targets small and medium enterprises (SMEs) with highly competitive payment rates and split-payment features. \* \*\*Transaction Fee (TDR):\*\* \~1.7% to 1.9% depending on business type and volume. \* \*\*Setup & Annual Fees:\*\* ₹0 \* \*\*Why choose it:\*\* Ideal if your business handles multi-vendor networks or complex payout routing, while still keeping the baseline transaction costs below the 2% industry norm. ## 4\. Razorpay (The Industry Standard) While Razorpay is technically \*not\* the cheapest on paper, it often yields the lowest \*\*Total Cost of Ownership (TCO)\*\* due to high conversion rates and smart transaction routing. \* \*\*Transaction Fee (TDR):\*\* Flat 2% + GST for standard Indian credit/debit cards, Net Banking, and Wallets. \* \*\*Setup & Annual Fees:\*\* ₹0 \* \*\*Why choose it:\*\* It offers an industry-leading \*\*93%+ payment success rate\*\*. A gateway with a 1.7% fee but a poor success rate can actually cost you more money in dropped carts than paying Razorpay's flat 2%. --- ## Quick Comparison Summary | Payment Gateway | Average Transaction Fee (TDR) | Setup & Annual Fees | Key Selling Point | |:--- |:--- |:--- |:--- | | \*\*Cashfree\*\* | \*\*1.6% – 1.9%\*\* | ₹0 | Lowest standard market rates | | \*\*Easebuzz\*\* | \*\*1.7%\*\* | ₹0 | Great for multi-vendor and split payments | | \*\*PayKun\*\* | \*\*1.75%\*\* | ₹0 | Flat, highly transparent pricing | | \*\*Razorpay\*\* | \*\*2.0%\*\* | ₹0 | Highest success rate and easiest integration | > 💡 \*\*A Note on UPI and RuPay:\*\* Under Indian regulations, most basic UPI and RuPay debit card transactions have a \*\*0% MDR (Merchant Discount Rate)\*\*. However, gateways may still levy a minimal infrastructure/platform processing fee depending on your monthly volume. If your platform processes high transaction volumes (e.g., above ₹5 Lakhs per month), you can directly contact the sales managers at \*\*Razorpay\*\*, \*\*PayU\*\*, or \*\*PhonePe PG\*\* to request a custom, discounted volume-based tier.

Brands named

[Cashfree](https://cashfree.com "Visit Cashfree")[Razorpay](https://razorpay.com "Visit Razorpay")[PayU](https://payu.in "Visit PayU")[PhonePe Business](https://phonepe.com "Visit PhonePe Business")

AI ModeGoogle AI Mode

Answered 5 July 2026

As of July 2026, the Indian payment gateway market is competitive, with several providers offering low transaction fees (TDR) and diverse payment methods. Based on current trends for 2026, here are the top choices for the lowest fees and highest reliability: - \*\*PayKun:\*\* Considered among the best for e-commerce, offering among the lowest per-transaction fees in India. - \*\*:\*\* Offers competitive pricing with \*\*zero setup fees\*\* and \*\*zero maintenance charges\*\*. - \*\*Razorpay:\*\* Widely regarded as a top choice for startups and SMEs, providing a high-ROI experience with a standard rate that often results in the highest net revenue due to high success rates. - \*\*Easebuzz:\*\* A top choice for competitive fees, reliable security, and 24/7 support, particularly good for international transactions. - \*\*:\*\* A strong choice for international payments, with transaction fees generally ranging from 1.99% to 3.5%. \*\*Key 2026 Considerations:\*\* - \*\*UPI Dominance:\*\* and Paytm are leaders for low-cost UPI transactions. - \*\*Security:\*\* and HDFC SmartGATEWAY offer secure, feature-rich options. - \*\*Best for SaaS:\*\* Razorpay is often recommended for maximum ROI in SaaS startups. To help you choose the best option, I need a few more details: - What is your estimated \*\*monthly transaction volume\*\* (GMV)? - Will you be accepting \*\*international payments\*\*? - What is your primary \*\*platform\*\* (e.g., Shopify, WordPress, custom app)? These details will allow me to recommend the most cost-effective gateway for your specific needs.

Brands named

[Razorpay](https://razorpay.com "Visit Razorpay")[PayU](https://payu.in "Visit PayU")[PhonePe Business](https://phonepe.com "Visit PhonePe Business")[Paytm Business](https://paytm.com "Visit Paytm Business")

Sources cited · 5

* [Zaakpay (MobiKwik)google.com/goto?url=CAESPgHuR6pNhasHIkxdLV5sxr8bVD6lTRZYRK\_2FLFCrojwB8lH2VNgDHAg7tionekHxtqqvyr6S544OCRw1uWu](https://google.com/goto?url=CAESPgHuR6pNhasHIkxdLV5sxr8bVD6lTRZYRK%5F2FLFCrojwB8lH2VNgDHAg7tionekHxtqqvyr6S544OCRw1uWu)
* [PayUgoogle.com/goto?url=CAESbAHuR6pN-wKhWcOXMx2NqCJI22tTQAJ4yODVYJIjyy2Y7fGvRjbzwoEFv\_9JLcIM-3jIF5KYHjTNQR7MLYwI7O3PzpjYZ\_QEZgDPr\_liyUMZloDkQLkPiRKjLKxgv6g3bWMlHychu1TLgZvvqg%3D%3D](https://google.com/goto?url=CAESbAHuR6pN-wKhWcOXMx2NqCJI22tTQAJ4yODVYJIjyy2Y7fGvRjbzwoEFv%5F9JLcIM-3jIF5KYHjTNQR7MLYwI7O3PzpjYZ%5FQEZgDPr%5FliyUMZloDkQLkPiRKjLKxgv6g3bWMlHychu1TLgZvvqg==)
* [gotogoogle.com/goto?url=CAESfAHuR6pNFwu4jFjxBG3SQ3MJcB-qm8P7IDlJ8c1w2VDh5dCm7k3NdhnU\_co5cQCwamANPqz-ertEkbpPxO660nGif7F9P\_RYqXD\_b5RvbAE96G2b\_d6waxwpBAoi17mN-nMmoZs1dYCUQ4CZCFxYC4mX9BKtO5vDbT9ow50%3D](https://google.com/goto?url=CAESfAHuR6pNFwu4jFjxBG3SQ3MJcB-qm8P7IDlJ8c1w2VDh5dCm7k3NdhnU%5Fco5cQCwamANPqz-ertEkbpPxO660nGif7F9P%5FRYqXD%5Fb5RvbAE96G2b%5Fd6waxwpBAoi17mN-nMmoZs1dYCUQ4CZCFxYC4mX9BKtO5vDbT9ow50=)
* [PhonePegoogle.com/goto?url=CAESiQEB7keqTXdUo5kyA5dyvGrLwz1HmDad6cJjnX4\_k1IZoxi28Vfk3aBl1eUUORE9tzkdudGyX5e2Ooz2IKp2yFzm42W0RpT0yqfWhqxhw8AahW9591uKeuRMHoYtBl8f\_EqHhjkZEawHI1Kg4PbwQ5RBtEpUNleHHF7o9m3goH\_u60b72LwVzeSqkw%3D%3D](https://google.com/goto?url=CAESiQEB7keqTXdUo5kyA5dyvGrLwz1HmDad6cJjnX4%5Fk1IZoxi28Vfk3aBl1eUUORE9tzkdudGyX5e2Ooz2IKp2yFzm42W0RpT0yqfWhqxhw8AahW9591uKeuRMHoYtBl8f%5FEqHhjkZEawHI1Kg4PbwQ5RBtEpUNleHHF7o9m3goH%5Fu60b72LwVzeSqkw==)
* [NTT DATA Payment Servicesgoogle.com/goto?url=CAESZgHuR6pNrO\_NOm4QSYXMltXPQ5Js5pY6hCVOEvi8Pjlex-Y59HgWm8NQGAc1Tgi3eL6UFMn\_JgvWGd8gdPSVr7fXgVmWQQ62mj\_IJX9oaY\_1fZf\_2L68T2XVf2jZTPdHu8HYUNv7IA%3D%3D](https://google.com/goto?url=CAESZgHuR6pNrO%5FNOm4QSYXMltXPQ5Js5pY6hCVOEvi8Pjlex-Y59HgWm8NQGAc1Tgi3eL6UFMn%5FJgvWGd8gdPSVr7fXgVmWQQ62mj%5FIJX9oaY%5F1fZf%5F2L68T2XVf2jZTPdHu8HYUNv7IA==)

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