Payment gateways

Razorpay vs Cashfree vs PayU: Which Suits a Small Business?

All three are established Indian payment gateways that accept UPI, cards, net banking and wallets, and all three will work for most small Indian businesses. The better question is which one fits the rest of what you need: Razorpay has the widest set of add-on products, Cashfree is strong on payouts and instant settlements, and PayU is often chosen by businesses that want EMI and pay-later options at checkout.

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We integrate all three for our clients. None of them pays us a commission or referral fee, and we have no affiliate links on this page. Fees and product names change often, so we do not quote rates here. Each provider’s official pricing page is linked below, and your final rate is what they agree with you in writing.

Written by the RED SAG engineering team. We have no affiliate or referral arrangement with any company named on this page. Last reviewed .

Side by side

At a glance

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Razorpay, Cashfree and PayU compared on commonly advertised features
What you needRazorpayCashfree PaymentsPayU
Payment methodsUPI, cards, net banking, wallets and EMI optionsUPI, cards, net banking, wallets and EMI optionsUPI, cards, net banking, wallets, with a strong focus on EMI and pay-later options
No-code ways to get paidPayment Links, Payment Pages and payment buttonsPayment Links and Payment FormsPayment Links
Recurring paymentsSubscriptions with UPI AutoPay, cards and eNACH mandatesSubscriptions with UPI AutoPay and eNACH mandatesRecurring payments and subscriptions
Split payments for marketplacesRouteEasy SplitSplit settlement
Paying out to vendors, staff or customersPayouts through RazorpayXPayouts, one of its best-known productsPayouts
Settlement speedStandard settlement cycle, with faster settlement offered as a paid optionStandard settlement cycle, with instant settlements heavily promotedStandard settlement cycle; ask about faster settlement options
Developer documentationExtensive docs, SDKs and plugins for common platformsExtensive docs, SDKs and plugins for common platformsDocs, SDKs and plugins for common platforms
Where to check current feesrazorpay.com/pricingcashfree.com/payment-gateway-chargespayu.in/pricing

Based on what each provider publicly advertises at the time of review. Product names, availability and eligibility change, and some features need separate approval. Always confirm on the provider’s own site.

Short answer

Which one fits you

Razorpay may suit you if…

you want one provider for many things at once: checkout, payment links and pages, subscriptions, marketplace splits and business payouts, with plenty of plugins and documentation.

Cashfree may suit you if…

paying out money matters as much as collecting it, for example refunds, vendor or agent payments, or you want instant settlement of collections.

PayU may suit you if…

your customers buy higher-value items and card EMI or pay-later options at checkout could help them buy.

Apply to two if…

you are not sure. Approval times vary, having a backup gateway protects your sales if one has an outage, and a second quote helps you negotiate.

In detail

Payment gateway charges in India: what to compare

All three publish a standard rate on their pricing page and negotiate custom rates for higher volumes. The headline percentage is only part of the cost. Before you sign, compare these on the pricing page and in your agreement:

  • The rate for each payment method you expect most, such as UPI, domestic cards, credit cards, international cards and EMI.
  • Whether GST is charged on top of the fee (it usually is).
  • Any set-up fee, annual maintenance fee or minimum monthly charge.
  • The cost of faster settlement, payouts and add-ons such as subscriptions or split payments.
  • How refunds and chargebacks are charged and handled.

Onboarding: what all three will ask for

Payment aggregators work under RBI rules, so all three must check who you are before you go live. The exact list depends on your business type, but expect to provide your PAN, business registration proof (for example GST registration, Udyam certificate or incorporation documents), a bank account in the business name, and the KYC documents of the owners or directors.

They also review your website or app. Before applying, make sure it has your contact details, clear product and price information, and published terms, privacy, refund and cancellation, and shipping or delivery policies. Missing policy pages are one of the most common reasons we see applications held back.

Some categories, such as lending, gaming, crypto or certain regulated goods, face extra checks or may not be accepted at all. Ask the provider before you build around them.

Which one we suggest, and when

For a typical small shop, service business or online store, the differences in day-to-day use are small. We usually suggest applying to two providers at once. You can go live with whichever approves first, keep the other as a backup, and use the second offer to negotiate the rate.

For lenders, chit funds and other businesses that collect instalments, the recurring payment product and how cleanly it reports failed mandates matter more than the headline rate. For marketplaces, look closely at the split payment product and its onboarding rules for your sellers.

How RED SAG helps

We integrate Razorpay, Cashfree, PayU and other gateways into websites, apps, billing software and lending systems. That includes checkout, payment links, UPI AutoPay and eNACH mandates, webhooks, refunds, payouts and daily reconciliation against your bank settlements.

We are not paid by any provider. We help you pick based on what your business needs, and your gateway account is always in your own name.

Not sure which way to go? Send a few lines about your business. We reply within one working day with a straight answer, even if the answer is that you do not need us.

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FAQ

Frequently asked questions

Which is the best payment gateway for a small business in India?

There is no single best one. Razorpay, Cashfree and PayU all accept the main payment methods and suit most small businesses. Pick based on what else you need: a wide product range (Razorpay), payouts and instant settlement (Cashfree), or EMI and pay-later at checkout (PayU). Then compare the current rates on each official pricing page.

What are payment gateway charges in India?

Each provider publishes a standard rate per payment method and negotiates custom rates for larger volumes, usually with GST added on top. Rates change, so check the official pricing pages linked on this page and get your rate in writing before you go live.

Is Razorpay better than Cashfree?

Neither is better for everyone. Razorpay offers a broader set of products under one account. Cashfree is especially strong for payouts and instant settlements. For simple online collections, both work well, and the rate you are offered may decide it.

Can I use more than one payment gateway?

Yes. Many businesses keep a second gateway as a backup or route certain payment methods through the provider that gives the best rate for them. We can build checkout and reconciliation to handle two gateways.

How long does gateway approval take?

It depends on your business type and how complete your documents and website are. Simple cases can be quick, while regulated or unusual categories take longer. Having your policy pages and business documents ready is the best way to avoid delays.

Does RED SAG earn a commission from any of these gateways?

No. We are not paid by Razorpay, Cashfree or PayU and have no affiliate arrangement with them. Our fee is for the integration work, quoted to you in writing.

How much does a payment gateway integration cost?

See our payment gateway integration page for current price bands. A simple website or checkout integration is at the low end, and subscriptions, split payments or payouts with reconciliation cost more.

Which gateway is best for EMI or loan instalment collection?

For instalments, look at each provider’s recurring payment product: UPI AutoPay and eNACH mandate support, how failed debits are reported, and retry rules. All three offer recurring payments, so we usually test the flows with your expected customer base before recommending one.

What we build

Related solutions

More comparisons on the compare page, or see how we position ourselves in fintech solutions for small businesses.

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