Payment Gateway Companies in India 2024 | Meaning & Types

Payment Gateway Companies in India 2024 | Meaning & Types

E-commerce as an industry in India grew by leaps and bounds. It is likely to touch $98.4 billion by 2024. The lockdowns and restrictions due to COVID-19 forced people to shop everything online. It mainly led to a boom in this sector.

Online payments in India have seen an upward trend with the emergence of online shopping. A sizable number of small and large businesses have started accommodating payment gateways. A good payment gateway must be profitable to the merchant and should have a customer-centric approach.

Meaning of Payment Gateways

Payment gateways are necessary for helping businesses grow. It acts like a subway that connects the bank account to the platform where we need to transfer money. In other words, it is a third-party online payment service integrated into an e-commerce platform to gather payments.

Here, the automation of payment transactions is initiated between the shopper (buyer) and merchant (seller). They are provided by banks and specialized financial institutions.

Payment Gateway Companies in India 2024 (alphabetical order)

  • Airpay
  • Atom Paynetz
  • Bill Desk
  • CCAvenue
  • Cashfree
  • Citrus
  • DirecPay
  • Easebuzz
  • EBS
  • Emvantage
  • ePaisa
  • HDFC
  • InstaMojo
  • JusPay
  • Mobikwik
  • PayKun
  • PayPal
  • PayU
  • PayUbiz
  • PayUMoney
  • PayTM
  • Razorpay
  • SBI
  • Transecute
  • Zaakpay

Types of Payment Gateways

  • Redirects
  • Checkout On-site and Payment Off-site
  • On-site Payments

There are three types of payment gateways:

  1. Redirects

Redirects mean when the gateway takes a customer to a payment page (eg. in PayPal) to handle the complete transaction (i.e. processing and paying).

  1. Checkout On-site and Payment Off-site

In this type, the front-end checkout will occur on the site, but the payment processing happens through the payment gateway’s back end. Only established payment gateways need to be used here. Simplicity is an advantage in handling the payments this way.

  1. On-site Payments

Big businesses use on-site payments as it is completely handled on their own servers. The checkout and payment processing of the customer work through this system.