Payment Providers in India
India runs on UPI — the National Payments Corporation's instant payment system that processes over 10 billion transactions per month. For Indian merchants, UPI acceptance is non-negotiable; it's free or near-free, instant, and used by every smartphone user. Cards (RuPay domestic, Visa/Mastercard international) and net banking complete the typical Indian checkout stack.
Key payment methods in India
The local rails merchants must support to convert India customers.
About payments in India
Why is UPI so dominant in India?
UPI launched in 2016 with strong government backing and zero merchant fees for small merchants. It runs on a real-time interbank rail, works via QR code or phone number, and is integrated into every major Indian app. For merchants, accepting UPI costs almost nothing compared to 1.5-2% for cards.
Do I need an Indian entity to process payments in India?
Yes, RBI regulations require domestic payment processing through Indian-licensed entities. Foreign sellers typically use payment aggregators with PA/PSP licenses or partner with Indian merchant-of-record services. Cross-border imports are also allowed via specific RBI-approved channels.
What about settling in INR vs USD?
Domestic Indian merchants settle in INR. Cross-border sellers typically settle in USD/EUR via SWIFT after FX conversion (1-2% spread). RBI has restrictions on holding foreign currency in Indian accounts, which affects how cross-border processors structure settlement.