Best payment gateway with lowest fees India 2026

If your priority is **the lowest transaction fees**, **Cashfree Payments** is currently one of the strongest choices in India for 2026. It has promotional pricing as low as **1.6%** for eligible businesses (limited-time offer), with standard pricing around **1.95%** for many merchants. Here's a practical comparison: | Payment Gateway | Typical Domestic Fee* | Best For | |---|---:|---| | **Cashfree Payments** | **1.6–1.95%** | Lowest pricing, fast settlements, growing businesses | | **Razorpay** | ~2.0% | Best overall features, APIs, subscriptions | | **PayU** | ~2.0% | High-volume merchants, EMI options | | **CCAvenue** | Varies by plan | Businesses needing extensive payment methods | | **Instamojo** | ~2% + fixed fee | Small sellers and creators | Keep in mind that the **cheapest gateway isn't always the lowest-cost in practice**. Also compare: - Payment success rate (higher success = more completed orders) - Settlement speed (T+1, T+2, instant options) - Refund and chargeback fees - International payment support - Subscription/recurring payment support ### Recommendations by business type - **Startup or SaaS:** Razorpay - **E-commerce (lowest fees):** Cashfree Payments - **Large enterprise:** PayU or Cashfree (custom negotiated pricing) - **Freelancers/Creators:** Instamojo If you're processing **more than ₹50 lakh–₹1 crore per month**, don't rely on public pricing—most gateways will negotiate lower MDR based on your volume. If you tell me: - your **monthly payment volume** (e.g. ₹5 lakh, ₹50 lakh, ₹2 crore), - whether you sell **physical products, digital products, SaaS, or services**, and - whether you need **international payments**, I can recommend the most cost-effective gateway for your specific business.

In India, standard domestic transactions across almost all major payment gateways cost roughly **2% + 18% GST**. However, if you are looking for the absolute lowest fees, the landscape varies slightly depending on your business model, order volume, and primary payment modes. Most payment gateways process **UPI and RuPay debit cards at 0%** (mandated by the Government of India), so your primary cost differentiator will be standard credit cards, net banking, and wallets. The best payment gateways in India for 2026, ranked by competitive pricing and features: ### 1. Cashfree Payments (Best Overall for Low Fees) Cashfree offers some of the most aggressive baseline pricing for domestic transactions, often undercutting competitors slightly on specific modes. * **Transaction Fee:** Starting from **1.75% to 1.95%** for domestic cards, net banking, and wallets. * **UPI & RuPay Debit:** 0%. * **International Cards:** 2.95% – 2.99%. * **Setup / AMC:** Free setup. *Note: Check for any active annual maintenance charges (AMC) depending on your business type, though standard accounts usually waive it.* * **Best For:** E-commerce businesses looking for lower base transaction fees and instant refund/payout capabilities. ### 2. Paykun (Lowest Baseline TDR) Paykun is a lesser-known but highly competitive player that deliberately undercuts the market giants on transaction fees. * **Transaction Fee:** **1.75%** flat for standard domestic credit cards, net banking, and wallets. * **UPI & RuPay Debit:** 0%. * **International Cards:** ~3%. * **Setup / AMC:** Free. * **Best For:** Startups and small businesses looking for the absolute lowest per-transaction rate without requiring highly advanced enterprise features. ### 3. PhonePe Payment Gateway (Best for UPI-Heavy Businesses) PhonePe entered the payment gateway space aggressively to compete with Razorpay by slashing margins. * **Transaction Fee:** Highly competitive custom rates, often around **1.85% – 2%** for credit cards and net banking. * **UPI & RuPay Debit:** 0%. * **Setup / AMC:** Free. * **Best For:** Small to medium businesses that expect a massive volume of mobile and UPI-driven transactions. ### 4. Razorpay & PayU (Best for Scale & High Volume) Razorpay and PayU are market leaders. While their standard onboarding rate sits at a flat **2%**, they are the most flexible when negotiating custom pricing for volume. * **Transaction Fee:** Flat **2%** for domestic. * **UPI & RuPay:** 0%. * **International Cards:** 3%. * **Setup / AMC:** Free. * **Best For:** Established businesses with high transaction volumes. If your monthly revenue exceeds **₹5 Lakhs**, you can approach their sales teams directly to negotiate a lower custom TDR (Transaction Delivery Rate). --- ### Comparison Summary (Domestic Transactions) | Payment Gateway | Standard Domestic Fee | UPI / RuPay Fee | International Fee | Best For | |:--- |:--- |:--- |:--- |:--- | | **Paykun** | **1.75%** | 0% | 3% | Lowest starting fee for low volume | | **Cashfree** | **1.75% - 1.95%** | 0% | 2.95% - 2.99% | Fast payouts and split payments | | **PhonePe PG** | **~1.85% - 2%** | 0% | Limited | Mobile-first & UPI integrations | | **Razorpay** | **2.0%** | 0% | 3% | Top-tier tech, analytics, and scaling | | **PayU** | **2.0%** | 0% | 3% | Enterprise stability and high success rates | ### A Note on Hidden Costs When choosing, keep in mind that an **18% GST** applies to all transaction fees across all platforms. For instance, a 2% fee effectively becomes 2.36%. To give you a more tailored recommendation, what is your expected monthly sales volume, and do you need to accept international payments?

As of July 2026, the best payment gateways in India with the lowest fees generally feature competitive standard rates around 1.9%–2% for domestic transactions, with specialized lower rates for UPI and RuPay. The optimal choice depends on your business volume (GMV) and preferred payment methods. Top Low-Fee Payment Gateways in India 2026 - **:** Frequently identified as offering competitive rates, with a standard transaction fee around 1.75%–1.90% for domestic transactions. It is particularly strong for high-volume merchants, offering 0% TDR (Total Discount Rate) on UPI and RuPay, and rapid settlement cycles. - **:** A top choice for startups and SMEs, standardizing its fees at 2% per transaction for most domestic cards, UPI, and wallets. While not always the absolute lowest headline rate, its comprehensive features and reliability make it a high-ROI option. - **Paytm Payment Gateway:** Offers highly competitive rates, specifically 0% MDR on UPI transactions and 1.99% plus GST for credit cards. This is an excellent option for businesses focusing on fast, native Paytm wallet and UPI integration. - **:** A strong contender for mid-market and enterprise businesses, generally charging 2% per transaction for domestic cards, netbanking, and wallets, with competitive rates for EMI and international payments. - **:** Known for low headline rates, with domestic card rates often around 1.99%, making it competitive for high-volume transactions, though fixed costs should be considered. Fee Structure Comparison 2026 - **UPI and RuPay:** Often 0% or significantly lower rates (0.75% to 1%). - **Credit/Debit Cards:** Generally 1.9% to 2.1%. - **International:** Typically higher, around 3.0% – 3.5% + fixed fee. - **GST:** An additional 18% GST applies to the transaction fees. Summary of Best Options 1. **Best for Overall Low Rates & Variety:** Cashfree Payments (0% UPI, competitive TDR). 2. **Best for Startups & Features:** Razorpay (Reliable, fast setup, 2% fee). 3. **Best for UPI/Wallet Focus:** Paytm Payment Gateway (0% UPI, 1.99% Cards). 4. **Best for Enterprise & International:** PayU. *Note: The fees listed are standard rates as of mid-2026; high-volume businesses can often negotiate lower custom rates.* To help you choose the absolute best option for your business, could you tell me: - What is your estimated **monthly transaction volume (GMV)**? - Do you sell mainly within India or **internationally**? - Are you using a platform like **Shopify/WooCommerce** or a custom website?