Everything You Need to Know to Start Accepting Online Payments Smoothly
Starting your own business is exciting. You’ve got a product or service you believe in, you’ve built your website or store, and now you’re ready to start making money.
But wait — how do you actually accept payments online?
That’s where payment gateways come in. If you’re a startup in India, choosing and integrating the right payment gateway is one of the most important steps to running a successful business.
In this post, we’ll break it all down for you — in plain English.
What is a Payment Gateway?
A payment gateway is a tool that lets you securely accept online payments through your website or app. It handles:
- Card payments (debit/credit)
- UPI
- Net banking
- Wallets (Paytm, PhonePe, etc.)
It’s like the bridge between your customer’s money and your bank account.
Why Startups Need a Payment Gateway
If you’re a startup or small business, especially in India, here’s why having a proper payment gateway matters:
- Customer trust – People prefer secure, familiar checkout options
- Faster payments – No need to manually check UPI transfers
- Automation – Orders, invoices, and payments sync smoothly
- Scalability – Works whether you get 5 or 5,000 orders a day
Best Payment Gateways for Indian Startups (2025)
Here are some popular and startup-friendly options:
1. Razorpay
- Super easy to set up
- Supports UPI, cards, wallets, and more
- Instant activation for most startups
- Developer-friendly APIs
- Payout and subscription tools
✅ Great for: Indian startups, SaaS businesses, e-commerce, freelancers
2. PayU
- Strong presence in India
- Simple dashboard
- Accepts 100+ payment options
- Customizable checkout
✅ Great for: Mid-sized startups, e-commerce stores
3. Cashfree
- Known for bulk payouts and split payments
- Low transaction fees
- Instant refunds
✅ Great for: Marketplaces, logistics platforms, multi-vendor sites
4. Instamojo
- Built specifically for Indian startups
- Accept payments via links — no website needed
- Ideal for DTC brands, solopreneurs, digital products
✅ Great for: Coaches, small retailers, digital creators
5. CCAvenue
- Older but still reliable
- Multilingual support
- Global cards accepted
✅ Great for: Businesses targeting Indian + international customers
Documents You’ll Need to Apply
To activate your payment gateway, be ready with:
- PAN Card (individual or business)
- Aadhaar or address proof
- Bank account details
- Website or product link
- Business registration (optional but better)
- GST number (for scaling businesses)
Some platforms also allow unregistered individuals to start — especially Instamojo and Razorpay Starter Plans.
How to Integrate a Payment Gateway
Here’s a simple overview:
Step 1: Sign up
Go to the payment gateway website and create an account.
Step 2: Verify documents
Upload your KYC documents and wait for approval (usually 24–72 hrs).
Step 3: Get API keys
Once approved, you’ll get:
- API key
- Secret key
You’ll use these to connect the gateway to your site or app.
Step 4: Install or connect
If you’re using:
- WordPress/WooCommerce: Use free plugins (e.g., Razorpay for WooCommerce)
- Shopify: Use the payment gateway app
- Custom site: Ask your developer to integrate using API docs
Step 5: Test & go live
Try a ₹1 transaction, test refunds, and make sure notifications work.
Things to Keep in Mind
Before choosing a payment gateway, ask yourself:
- What’s the transaction fee (usually 1.75% to 2.5%)?
- Do they offer COD handling?
- Is it mobile-friendly?
- Do they support UPI & wallets?
- How fast are the payouts (T+1, T+2)?
- Is there good support when issues come up?
Tip: Razorpay and Instamojo have great support for early-stage startups.
Bonus: Accepting International Payments?
Planning to go global?
Look for:
- Paypal (global, but higher fees)
- Stripe (not fully in India yet)
- Razorpay International (best local option)
You’ll need:
- IEC (Import Export Code)
- GST (for exports)
- Updated bank KYC
Real Startup Use Case
Let’s say you sell handcrafted jewelry through your Shopify site.
You use Razorpay for Indian payments and activate Razorpay International later.
You connect it to WhatsApp Business and set up a basic funnel.
Within weeks, you’re accepting UPI, cards, and even PayPal — all from a mobile.
Final Thoughts
If you’re starting an online business in India, a payment gateway is not optional — it’s essential.
The good news?
You don’t need to be a developer or tech expert.
You just need the right tools and guidance.
Pick the right gateway, test carefully, and you’ll be ready to start collecting payments like a pro.
“A great product + smooth payments = happy customers + faster growth.”
Need Help Setting It Up?
At Eco Web Craft, we help Indian startups:
- Build websites
- Integrate payment gateways
- Set up UPI, Razorpay, Instamojo, and more
- Connect payments with shipping, order tracking, and WhatsApp
👉 Let’s Connect and get your business payment-ready!
