comparison
Razorpay vs VyaparGateway — Detailed Feature & Price Comparison for Indian Merchants
Side-by-side comparison of Razorpay and VyaparGateway for Indian merchants. Covers UPI pricing, settlement speed, onboarding, and which platform suits which business.
Razorpay is the most recognised payment gateway brand in India, and with good reason — it was one of the first to offer a clean API experience for Indian businesses. But being the most well-known does not mean it is the right fit for every merchant. If your customers primarily pay via UPI, the cost and settlement math may surprise you. This comparison covers both platforms honestly.
Pricing: The Most Important Difference
Razorpay UPI pricing: 2% + 18% GST = effectively 2.36% per UPI transaction.
This is not a small number. On ₹5 lakh collected per month via UPI:
- Razorpay fee: ₹11,800/month
- VyaparGateway fee: ₹0/month
- Annual difference: ₹1,41,600
The 0% MDR on UPI is mandated by the Government of India as part of promoting digital payments. Licensed Payment Aggregators like Razorpay absorb this for their core UPI rails but recover cost through blended pricing, subscription plans, or ancillary products. VyaparGateway, as a merchant UPI software layer working on direct TPAP/bank integrations, passes the 0% MDR directly to merchants.
Razorpay card pricing: 2% + GST for domestic cards, higher for international cards and EMI. If you need card acceptance, Razorpay’s pricing is in line with the industry.
Settlement Speed
Razorpay: Payments are held in Razorpay’s RBI-mandated nodal account. Settlement to your bank account happens on T+1 or T+3 depending on your plan and account age. During festivals and bank holidays, settlement may be delayed further.
VyaparGateway: UPI payments go directly to your linked bank account. Settlement is T+0 — the money appears in your account on the same day, often within hours of the payment. For businesses with working capital requirements or high daily turnover, same-day settlement is a meaningful operational advantage.
Website Requirement
Razorpay: Razorpay’s checkout requires a website or mobile app with an integration. You need to embed the Razorpay SDK, build a checkout UI, and handle the payment response. Razorpay does offer payment pages (hosted links), but the full feature set requires technical integration.
VyaparGateway: Designed for merchants without a website. You generate payment links and QR codes from the dashboard and share them via WhatsApp, SMS, or email. No website, no coding, no SDK integration required for basic collection.
Onboarding and KYC
Razorpay: Onboarding requires submitting business documents (GST certificate, PAN, bank account details, website URL, business description). KYC review typically takes 3–7 business days. You need a live website with a terms of service and refund policy page.
VyaparGateway: Onboarding is faster with minimal documentation for sole proprietors and small businesses. No website URL required. Suitable for individual service providers, freelancers, and small shops.
Payment Methods Supported
| Feature | Razorpay | VyaparGateway |
|---|---|---|
| UPI | Yes (2.36%) | Yes (0%) |
| Credit/Debit Cards | Yes | No |
| Net Banking | Yes | No |
| EMI | Yes | No |
| International Cards | Yes | No |
| UPI QR | Yes | Yes |
| Payment Links | Yes | Yes |
| Webhooks/API | Yes | Yes |
| Settlements | T+1 to T+3 | T+0 |
| No-code dashboard | Partial | Full |
Who Should Use Razorpay?
- Large e-commerce businesses with customers who pay by card or EMI
- SaaS companies collecting subscriptions via card with international customers
- Marketplaces needing split payments and vendor payouts
- Businesses that need net banking for high-value B2B transactions
Who Should Use VyaparGateway?
- Service businesses — consultants, tutors, lawyers, doctors, salons — where customers always pay via UPI
- Offline merchants transitioning from cash to digital
- Instagram/WhatsApp sellers who need payment links without a website
- High-volume UPI merchants who want to eliminate the 2.36% per-transaction fee
- Businesses where same-day cash flow matters — caterers, event planners, contractors
Can You Use Both?
Yes. Many businesses use VyaparGateway for their UPI collection (zero fees, faster settlement) and maintain a Razorpay integration for customers who want to pay by card or EMI. Running both in parallel is not complicated — they are separate tools with separate dashboards.
The Bottom Line
If more than 60% of your revenue comes via UPI, VyaparGateway will save you a meaningful amount of money every month and put it in your bank faster. If you need multi-rail payment acceptance with cards, EMI, and net banking, Razorpay’s ecosystem is mature and well-documented. The choice is not necessarily either/or — it is about knowing your customer’s payment behaviour and routing accordingly.
Direct answers
Frequently asked questions
- Does Razorpay charge for UPI payments?
- Yes. Razorpay charges 2% + GST on UPI transactions, which works out to approximately 2.36% per transaction. On ₹1 lakh collected, that is ₹2,360 in fees. VyaparGateway charges 0% on UPI, keeping the full amount in your business.
- When should I use Razorpay instead of VyaparGateway?
- Razorpay is better suited for businesses that need to accept credit cards, debit cards, EMI, net banking, or international payments — particularly large e-commerce platforms with complex checkout flows. VyaparGateway is better for UPI-first merchants who want zero fees and same-day settlement.
- How long does Razorpay take to settle payments?
- Razorpay holds funds in a nodal account and typically settles T+1 for standard accounts and T+3 for newer accounts. VyaparGateway settles directly to your bank account at T+0 — on the same day the payment is received.
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