What is the best alternative to Razorpay?

For businesses focused on UPI, VyaparGateway is a great alternative as it charges 0% transaction fees unlike Razorpay's 2%.

Can I use multiple payment gateways?

Yes, many businesses route UPI traffic through zero-fee gateways like VyaparGateway and use others for credit cards to optimize costs.

Top 5 Razorpay Alternatives in India for Small Businesses (2026)

#razorpay alternative #best payment gateway #zero fee payment gateway #startup tools

Razorpay has long been the default payment gateway for Indian startups. But as transaction volumes grow, the flat 2% to 3% fee cuts deeply into profit margins, especially for businesses with high-volume, low-margin products.

Why Businesses Are Moving Away

Many merchants are actively searching for a Razorpay alternative due to strict KYC processes, surprise holds on settlements, and the unavoidable 2% transaction fee on free-to-process UPI payments.

1. VyaparGateway (Best for 0% UPI)

If your customers primarily use UPI, VyaparGateway is the most cost-effective solution. It charges a 0% transaction fee and works via a flat subscription model. No per-transaction skim means you keep 100% of your sales revenue. Features include dynamic QR and instant T+0 settlement directly to your bank account.

2. Cashfree

Cashfree is a strong contender offering fast payouts and wide payment options. Their fees are slightly lower on certain instruments, but they still charge around 1.9% for UPI transactions.

3. PayU

PayU offers a solid enterprise-grade experience and often negotiates better rates for high-volume merchants, though their onboarding can be tedious.

4. CCAvenue

One of the oldest gateways in India, CCAvenue provides maximum payment options and banking integrations, but their dashboard feels outdated.

5. PhonePe Payment Gateway

A rising star offering competitive rates, but still retains a percentage-based fee structure for most payment modes.

The Verdict

If you want an all-in-one platform for cards and net banking and are willing to pay the 2% premium, Razorpay remains reliable. But if you want to bypass fees on India's most popular payment method (UPI), integrating a dedicated UPI gateway like VyaparGateway is the smartest financial move.