Guide to Payment Gateways in India 2026
E-commerce7 min

Guide to Payment Gateways in India 2026

Razorpay vs PhonePe vs Cashfree. Which one has the lowest failure rate and best pricing?

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Ashraf Kamal
8 January 2026

The Checkout Struggle

The hardest part of Indian e-commerce is the final payment. Failed payments = Lost Customers.

Razorpay

  • Pros: Best tech, amazing dashboard, international payments.
  • Cons: High failure rate sometimes, stricter KYC (hard to get approval).
  • Fee: 2%.

PhonePe PG

  • Pros: Zero fees (for now/promo), excellent success rate for UPI.
  • Cons: Dashboard is basic.
  • Fee: 0% (Promo) / competitive.

Cashfree

  • Pros: Good settlement speed (Instant settlement available).
  • Cons: UX is slightly technical.

Recommendation

For Startups: Razorpay (Best features). For High Volume: PhonePe (Save money). Pro Tip: Have a backup. If Razorpay is down, auto-switch to Cashfree.

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Topics

#payment gateway#razorpay#phonepe business
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Written by Ashraf Kamal

Expert in web design and development, helping businesses grow online since 2020.

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