The Ultimate Comparison for Small Businesses & Startups
Choosing the right payment gateway is crucial for keeping your business costs low and profits high. Among the most popular options in India, Paytm and Razorpay stand out — but their pricing structures differ enough to affect your margins.
Below is a clean, easy‑to‑understand comparison of which platform typically offers lower charges, based on commonly known pricing patterns, industry trends, and standard fee structures.
⚠️ Note: Exact pricing varies by business type, volume, risk profile, and offers. Always check updated charges on the official sites.
🧾 1. Paytm Payment Gateway – Typical Charges
Paytm is widely known for its wallet ecosystem and strong consumer presence. For merchants, Paytm usually follows a standardized fee structure across payment methods.
Common Paytm Charges (Indicative Patterns):
- UPI Payments: Usually 0% for merchants
- Credit Cards: Around 2%–2.5%
- Debit Cards: Often 0%–1% depending on category
- Net Banking: Approx. 1%–1.5%
- Wallet Payments: Typically 1.5%–2%
✔️ Strengths
- Strong brand trust
- Easy integration
- Great for small merchants with UPI-heavy payments
❌ Limitations
- Wallet payments often cost more
- Higher MDR in certain categories
💳 2. Razorpay Payment Gateway – Typical Charges
Razorpay is known for supporting startups and offering modern developer tools. Their pricing tends to be slightly more uniform.
Common Razorpay Charges (Indicative Patterns):
- UPI Payments: Usually 0%
- Credit Cards: Around 2%
- Debit Cards: Typically 0%–1%
- Net Banking: Around 1–1.25%
- International Payments: Approx. 3%–3.5%
✔️ Strengths
- Modern dashboard and APIs
- Supports subscriptions, payouts, and advanced workflow automation
- Transparent and stable pricing
❌ Limitations
- Some features require paid add-ons
- International charges slightly higher than competitors
🥇 3. So… Which Payment Gateway Has Lower Charges?
⭐ For UPI Payments:
Both Paytm and Razorpay offer 0%, so they are equally good.
⭐ For Credit/Debit Card Payments:
Razorpay generally offers slightly lower and more consistent card MDRs, making it cost-effective for businesses with high card usage.
⭐ For Wallet Payments:
Razorpay tends to be cheaper, while Paytm wallet fees are higher due to the ecosystem’s own charges.
⭐ For International Payments:
Razorpay usually provides better, more predictable pricing, especially for SaaS and export businesses.
📊 4. Quick Comparison Table
| Feature / Payment Type | Paytm (Typical) | Razorpay (Typical) | Winner |
|---|---|---|---|
| UPI | 0% | 0% | Tie |
| Credit Cards | ~2–2.5% | ~2% | Razorpay |
| Debit Cards | 0–1% | 0–1% | Tie |
| Wallet Payments | 1.5–2% | Lower / Varies | Razorpay |
| International | Higher Range | Lower Range | Razorpay |
| Developer Friendly | Moderate | Superior | Razorpay |
🧠 5. Which Should YOUR Business Choose?
👉 Choose Paytm Gateway if:
- Your users prefer Paytm Wallet
- You run FMCG, retail, or offline-linked businesses
- UPI makes up 90%+ of your payments
👉 Choose Razorpay if:
- You need automation, subscriptions, or API-heavy workflows
- You accept many card or international payments
- You want predictable pricing and better scalability
🚀 Final Verdict
For most small businesses and startups, Razorpay typically offers lower charges overall, especially for card and wallet payments — and provides better flexibility.
However, if your customer base strongly prefers Paytm Wallet or you rely heavily on UPI, Paytm may still be the better fit.
📢 Need Help Choosing or Setting Up a Payment Gateway?
Tell me about your business type, transaction volume, and payment methods — and I’ll recommend the most cost‑efficient option tailored to your needs!
