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Razorpay vs Cashfree vs PayU: choosing a payment gateway in India

Three of India's biggest gateways are more alike than different — but fees, payout speed, and supported methods add up over thousands of orders. Here's how to choose.

Illustration: comparing Razorpay, Cashfree and PayU
Rohan Mehta
Finance & Compliance
8 Jul 2026 · 6 min read

The gateway takes a cut of every sale

A payment gateway is what actually moves money from your buyer to you. Razorpay, Cashfree, and PayU are three of India's biggest, and they're more alike than different. But the small differences — fees, payout speed, and supported methods — add up over thousands of orders. Here's how to choose between them.

Fees: read past the headline rate

Each gateway advertises a per-transaction rate, often around 2% for standard methods. But the real cost depends on the method — UPI, cards, net banking, and international cards can all be priced differently. Ask for the rate on the methods you'll actually use most, not just the headline number.

Payout speed and settlement

How fast the gateway settles money to your bank affects your cash flow. Standard settlement often runs a couple of days; faster settlement usually costs more. If working capital is tight, a quicker, reliable payout cycle can be worth a slightly higher fee. Check the standard cycle before you sign up.

Supported methods and reach

All three cover UPI, cards, and net banking. Check the details that matter to you — international card support, EMI options, and how clean the UPI flow feels on mobile. A gateway that handles your buyers' preferred methods smoothly will quietly lift your conversion.

Onboarding and support

As a small seller, how fast you can get verified and live matters. So does the quality of support when a payment fails at 9pm during a sale. Ask other sellers about onboarding time and support responsiveness before you commit. These differ more than the fee sheets suggest.

The honest truth: they're close

For most small Indian stores, any of the three will do the job well. Don't agonise over it. Pick the one with clear pricing on your top methods, a payout speed you can live with, and support you trust. You can switch later if it doesn't fit — this isn't a forever decision.

How The Storemate fits

The Storemate connects to your own Razorpay account, so if Razorpay fits your needs, it's ready to plug in — UPI, cards, and COD live from your first order, with the gateway fee going straight through your own account. Bring your keys and start selling.

Frequently asked questions

Which is the best payment gateway in India?

For most small stores, Razorpay, Cashfree, and PayU are close. Pick the one with clear pricing on your top methods, a payout speed you can live with, and support you trust.

How do gateway fees compare?

Each advertises a per-transaction rate, often around 2% for standard methods, but the real cost depends on the method — UPI, cards, and international cards can be priced differently. Ask for the rate on the methods you use most.

How fast do gateways settle money to my bank?

Standard settlement often runs a couple of days; faster settlement usually costs more. If working capital is tight, a quicker payout cycle can matter more than a slightly lower fee.