Top Payment Gateway Options in India Approved by RBI: A Comprehensive Guide for 2023

The digital payment revolution, propelled by the rising number of online payment providers, has significantly reshaped the way India shops, sells and saves. As more individuals and businesses rely on online payment providers, understanding the nuances of these gateways becomes paramount for secure and efficient transactions.

In the context of India's rapidly evolving digital ecosystem, the Reserve Bank of India (RBI) has instituted rigorous regulations and guidelines to ensure the reliability and security of these platforms. Consequently, the payment gateways in India that have garnered RBI's approval stand as beacons of trust and credibility in the vast digital commerce arena. These platforms not only enable transactions but also shape the trajectory of India's digital financial narrative. Factors such as transaction speed, multi-currency support, and platform security play pivotal roles in influencing user choices.

This transformation underscores the importance of selecting the right payment gateway in India. But with numerous choices at our disposal, how do we discern the best? And more importantly, which ones have the stamp of approval from the Reserve Bank of India (RBI)? Let's dive into the newly rolled RBI  guidelines and their impact, along with the list of the best Indian payment gateways of 2023.

RBI's New Guidelines on Payment Gateways: A Game Changer

The Reserve Bank of India, as the custodian of India's financial systems, continually adapts its policies to reflect the evolving economic landscape. In light of the booming digital economy and the proliferation of online transactions, the RBI rolled out new guidelines for payment aggregators and payment gateways.

Key Changes

Capital Requirements: Payment aggregators are now required to have a minimum net worth of INR 15 crore at the time of application for authorization and will need to increase it to INR 25 crore by the end of the third financial year.

Merchant Onboarding: Payment aggregators must undertake thorough due diligence of merchants, ensuring the latter's legitimacy. This includes checks on the merchant's website, clarity on payment terms, and customer grievance handling mechanisms.

Settlement and Escrow: Funds collected by payment aggregators should be transferred to merchants based on a board-approved policy. This ensures greater transparency and safeguards against potential misuse of funds.

Data Protection: Aggregators and gateways must store all payment data in India. This also mandates periodic system audits conducted by CERT-IN empaneled auditors.

Grievance Redressal: A robust mechanism for addressing customer complaints must be in place, ensuring users have a clear and effective path for dispute resolution.

The guidelines ensure a more robust, transparent, and secure digital transaction environment. By raising the barrier for entry, RBI ensures that only serious players focusing on security and customer service can thrive in the payment gateway industry.

This, in turn, boosts consumer confidence. Knowing that a payment gateway operates under stringent RBI guidelines makes customers more likely to engage in online transactions.

For businesses, these guidelines mean a more reliable transaction process. With gateways being held to higher standards, the likelihood of transaction failures, disputes, or other issues diminishes.

1. PayU

Global expertise meets local nuances with PayU, a payment gateway that's renowned not just in India but across several international markets.

Their gateway is known for its quick integrations, allowing businesses to get up and running in minimal time. PayU provides multiple payment methods and conversion optimization techniques to ensure businesses can maximize their transaction success rates. Their dashboard offers in-depth analytics, granting businesses the ability to closely monitor transaction health.

PayU's journey from being a dynamic online payment gateway to one of the best Indian payment gateways of 2023 is characterized by innovation, user-centric design, and relentless commitment to security. As one of the preferred payment gateways in India approved by RBI, PayU's compliance with regulatory standards assures merchants and consumers alike of a secure transactional environment.

2. CCAvenue

As pioneers in the payment gateways in India, CCAvenue has weathered the test of time, continually evolving and innovating.

Their wide array of payment options, surpassing 200, is a testament to their inclusivity. Catering to an international audience, their multi-currency and multi-language features resonate with the global aspirations of Indian businesses. Furthermore, CCAvenue’s emphasis on security ensures that businesses and their customers can transact peacefully. Their dynamic event notification system and real-time fraud detection mechanism further bolster their standing in the industry.

3. Instamojo

Primarily focusing on SMEs, Instamojo is more than just an Indian payment gateway option; it's a comprehensive business solution.

What sets Instamojo apart is its ability to simplify complex processes. Their platform enables businesses to not only collect payments but also set up online stores, manage customers, and even delve into digital marketing. The intuitive interface, combined with robust backend technology, ensures that even those unfamiliar with digital platforms can harness its full potential.

4. PhonePe

Originating as a UPI-based app, PhonePe has rapidly expanded its horizons to encompass a holistic payment solution for businesses of all sizes.

PhonePe's gateway is designed to streamline the checkout process, providing customers with various payment methods, from UPI and credit cards to wallet payments. Its adaptive interface ensures it's user-friendly regardless of device type or internet speed. The gateway also boasts superior analytics, giving businesses insights into transaction patterns and helping them make data-driven decisions.


OPEN emerges as a beacon of innovation and reliability, solidifying its place among the premier payment gateways in India. 

Having been recognized and approved by the RBI, OPEN showcases its commitment to security, reliability, and compliance. OPEN stands out not just for its state-of-the-art technology but also for its intuitive user interface and seamless integration capabilities. Its versatility is evident in its adaptability, making it compatible with a plethora of platforms, catering to businesses of all scales and sizes.

6. MobiKwik

Having started its journey as a digital wallet, MobiKwik has expanded its portfolio to offer an all-encompassing payment solution catering to a diverse spectrum of businesses.

The MobiKwik payment gateway is celebrated for its adaptability. Whether you're an e-commerce giant or a budding start-up, the platform scales to your needs. One standout feature is the 'Power Wallet,' which offers businesses the advantage of housing multiple wallets within a single account. This proves invaluable in streamlining transaction processes and offering varied payment options to users. Further, their Boost loan feature, a first in the industry, provides instant loans, emphasizing MobiKwik’s drive to offer holistic financial solutions.

7. Cashfree

A relatively newer entrant, Cashfree has swiftly risen through the ranks to establish itself as a formidable player in the top payment gateway providers in India.

Cashfree's USP lies in its dedication to streamlining the entire payment process. Their bulk disbursal solution, Payouts, is particularly innovative, enabling businesses to send money instantaneously to any bank account, UPI address, or even a Paytm wallet. For e-commerce platforms, their auto-collect feature is a boon, automatically reconciling incoming payments. Moreover, their emphasis on stringent security protocols ensures that every transaction is not just fast but also safe.

8. BillDesk

Since its inception in 2000, BillDesk has been at the forefront of online payment services, serving as a trusted intermediary between banks, institutions, and consumers.

Their gateway solution simplifies the digital payment process for businesses, ensuring uninterrupted transaction flow even during high traffic. The platform's robust security protocols, combined with real-time transaction monitoring, provide businesses and consumers alike with a secure payment environment. They also offer customized payment solutions tailored to specific industry needs.

9. Citrus Pay

Acquired by PayU, Citrus Pay has nonetheless maintained its distinct brand identity and continues to be a formidable player in the payment gateway providers in India.

Their gateway solution stands out for its intuitive user experience, ensuring that customers can complete transactions swiftly and efficiently. The dynamic analytics dashboard allows businesses to monitor transactions in real-time, identify patterns, and quickly address any issues. Their extensive partner network ensures that businesses have all the tools they need to optimize their payment processes.

India’s digital payment canvas is a vibrant mosaic, with each payment gateway bringing its unique shade of innovation, efficiency, and security. The Reserve Bank of India's endorsement serves as a testament to its credibility. As we navigate the vast expanse of online payment providers in 2023, the need for businesses to align with a gateway that resonates with their ethos and operational needs becomes paramount. Equipped with this comprehensive guide, such alignment becomes not just feasible but intuitive.