Answered 7 July 2026
In 2026, the digital payments ecosystem in India operates heavily on a **Zero Setup Fee** and **Zero Annual Maintenance Charges (AMC)** model, especially for small businesses, startups, and D2C brands. Instead of upfront fees, gateways make money via a **Transaction Discount Rate (TDR)**, which is usually a flat percentage per successful transaction.
The best payment gateways in India with no setup fees are ranked below by their specific strengths, success rates, and true operational costs.
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### 1. Razorpay: Best Overall & Highest ROI
Despite having a slightly higher baseline transaction fee than some budget options, Razorpay is widely considered the top choice for startups and scaling businesses due to its industry-leading payment success rates (~90% via AI smart routing) and robust developer tools.
* **Setup Fee:** ₹0
* **Annual Maintenance Charges (AMC):** ₹0
* **Transaction Fees:** Flat **2% + GST** for domestic credit/debit cards, net banking, UPI, and wallets. (3% for international cards).
* **Best For:** E-commerce stores, D2C brands, and SaaS startups.
* **Key Advantage:** It features an exceptional dashboard, automated instant refunds, and a dedicated Subscriptions API for automated recurring billing (via UPI AutoPay and e-mandates) with zero hidden operational costs.
### 2. Cashfree Payments: Lowest Transaction Fees
Cashfree is highly competitive for growing businesses that want to keep transaction costs to a minimum while maintaining enterprise-grade infrastructure.
* **Setup Fee:** ₹0
* **AMC:** ₹0
* **Transaction Fees:** Highly aggressive pricing starting around **1.75% to 1.95% + GST** depending on the business category.
* **Best For:** High-volume D2C brands, marketplaces, and platforms requiring heavy bulk payouts.
* **Key Advantage:** Exceptional payout APIs. Cashfree allows rapid vendor payouts and boasts some of the fastest settlement cycles (including instant 15-minute settlements for eligible merchants).
### 3. PhonePe Payment Gateway: Best for Mobile-First & UPI-Heavy Tech
Backed by PhonePe's massive consumer app ecosystem, its merchant payment gateway offers seamless, low-friction integration with highly competitive pricing structures for new businesses.
* **Setup Fee:** ₹0
* **AMC:** ₹0
* **Transaction Fees:** Standard **1.99% + GST** for cards and net banking. UPI transactions typically enjoy standard zero-MDR rules, though minimal platform processing fees may apply depending on custom business rules.
* **Best For:** Mobile apps, hyper-local delivery services, and businesses whose primary customer base pays via UPI.
* **Key Advantage:** Unmatched infrastructure stability for UPI flows and high consumer trust.
### 4. Easebuzz: Best for B2B, Marketplaces & Sector-Specific Stacks
Easebuzz has emerged as a powerhouse for hybrid setups, MSMEs, and businesses that need specialized financial routing beyond a basic checkout page.
* **Setup Fee:** ₹0
* **AMC:** ₹0
* **Transaction Fees:** Average of **1.5% to 1.8% + GST** (highly negotiable based on volume).
* **Best For:** Multi-vendor marketplaces, EdTech (fee collections), and real estate.
* **Key Advantage:** Out-of-the-box features like *Slices* (split-payment APIs for marketplaces to pay out multiple vendors simultaneously) and automated invoicing tools.
### 5. Instamojo: Best for Solo Entrepreneurs & Social Sellers
If you don't have a website or a developer and simply want to start collecting payments via WhatsApp or Instagram today, Instamojo is the fastest tool.
* **Setup Fee:** ₹0
* **AMC:** ₹0 (for the basic payment link plan)
* **Transaction Fees:** **2% + ₹3 per transaction + GST**.
* **Best For:** Freelancers, creators, independent tutors, and micro-merchants.
* **Key Advantage:** Generates instant "Smart Payment Links" and offers a free built-in digital store builder, minimizing the friction of getting started.
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### Summary Comparison Table
| Payment Gateway | Setup / AMC Fee | Standard Domestic TDR | Ideal Target Audience |
|:--- |:--- |:--- |:--- |
| **Razorpay** | **₹0 / ₹0** | 2.0% + GST | Startups, D2C Brands, SaaS |
| **Cashfree** | **₹0 / ₹0** | 1.75% – 1.95% + GST | High-volume businesses, Marketplaces |
| **PhonePe PG** | **₹0 / ₹0** | 1.99% + GST | Mobile apps, UPI-first platforms |
| **Easebuzz** | **₹0 / ₹0** | 1.5% – 1.8% + GST | B2B, Marketplaces (Split payouts) |
| **Instamojo** | **₹0 / ₹0** | 2.0% + ₹3 + GST | Freelancers, Creators, No-code setups |
> 💡 **A Quick Tip on Pricing:** In India, **UPI and RuPay Debit Card** transaction fees (MDR) are legally mandated at **0%**. However, payment gateways may still charge a minor "platform/processing fee" (~1% to 2%) to cover secure routing, dashboard maintenance, and instant settlement features, unless you negotiate volume-specific pricing. If your monthly transaction volume crosses ₹5–10 Lakhs, you can easily approach any of these gateways to negotiate lower custom TDR rates.