India Payment Gateways Market Size, Share, Trends and Forecast by Application, Mode of Interaction, and Region, 2025-2033

Indian Payment Gateways Market Size and Share:

The Indian payment gateways market size reached USD 1,793.5 Million in 2024. The market is expected to reach USD 4,125.0 Million by 2033, exhibiting a growth rate (CAGR) of 9.70% during 2025-2033. The market growth is attributed to the bolstering e-commerce industry, favorable government initiatives and regulatory standards, and ongoing innovations in digital payment technology.

Market Insights:

• On the basis of region, the market has been divided into North India, West and Central India, South India, and East India.
• On the basis of application, the market has been divided into large enterprises, micro and small enterprises, and mid-size enterprises.
• On the basis of mode of interaction, the market has been divided into hosted payment gateways, pro/self-hosted payment gateways, API/non-hosted payment gateways, local bank integrates, direct payment gateways, and platform-based payment gateways.

Market Size and Forecast:

• Market Size in 2024: USD 1,793.5 Million
• Market Forecast in 2033: USD 4,125.0 Million
• Market Growth Rate (2025-2033): 9.70%

Market Overview:

A payment gateway is an online payment processing technology that authorizes and facilitates transactions between a merchant and a customer. It acts as a secure interface between the merchant's website and the payment processor, allowing customers to make electronic payments using various payment methods such as credit cards, debit cards, net banking, e-wallets, and more. The payment gateway securely collects the customer's payment information, encrypts it, and sends it to the payment processor for verification and approval. After the payment is authorized, it communicates the transaction status to the merchant and the customer. Payment gateways prevent fraud, ensure payment security, and simplify the payment process for the merchant and the customer. In addition to this, the solution has made e-commerce more accessible to small businesses and individuals, thus forming an essential part of the digital economy.

Rapid digitalization and the bolstering growth of the e-commerce sector in India are resulting in a surge in demand for online payment solutions, which, in turn, is primarily driving the India Payment Gateways Market Growth. Besides this, the increasing penetration of smartphones and high-speed internet services, and the convenience and safety associated with online transactions, are further supporting the market growth. Moreover, the introduction of several initiatives by the Government of India (GoI), such as the Digital India program and the demonetization drive to promote digital payments and reduce cash transactions, are creating a favorable outlook for the market. Concurrent with this, the government has also implemented several regulations, such as the mandatory use of two-factor authentication for online transactions, which have improved the security of online payments and increased the adoption of payment gateways. In addition to this, the flourishing gig economy in the country, the growing number of tech-savvy individuals, and the rising popularity of online gaming and entertainment are aiding in market expansion. In line with this, the proliferation of numerous digital wallets, such as Paytm, PhonePe, and Google Pay, and the emergence of token systems and cash pooling are providing remunerative growth opportunities for the market. Furthermore, ongoing innovations in payment technology, such as the integration of blockchain technology and artificial intelligence (AI), and the advent of internet banking, unified payments interface (UPI), and quick response (QR) codes are strengthening the market growth.

India Payment Gateways Market Trends:

UPI Dominance and Expansion

The Unified Payments Interface (UPI) has become the leading player in India's digital payment sector, significantly altering the payment gateway environment with its real-time, interoperable, and economical transaction features. UPI's market share has surged significantly, showcasing impressive expansion over the last 5 years. The India payment gateways market forecast suggests that UPI transactions are expected to hit 25 billion by 2025, fueled by rising smartphone adoption, enhanced digital literacy, and government efforts supporting cashless payments. The achievement of UPI has established India as a worldwide front-runner in instant payments. The incorporation of UPI into different merchant payment gateways has streamlined transaction procedures, lowered expenses, and improved user experience. Key payment gateway providers are utilizing UPI's framework to deliver smooth payment solutions throughout e-commerce websites, retail stores, and service providers, establishing it as a crucial element of India's digital payment transformation, according to the India payment gateways market analysis.

Innovations in Fintech and Integration of AI

The swift progress of financial technology and the integration of artificial intelligence are transforming India's payment gateway sector by improving security, fraud detection, and customized user experiences. Algorithms powered by AI are utilized to examine transaction patterns, identify suspicious behavior, and thwart fraud instantly, greatly enhancing the security and dependability of digital payments. Machine learning models facilitate predictive analytics for risk evaluation, dynamic pricing enhancement, and customer behavior examination, assisting payment gateway providers in delivering customized solutions. The payment gateways industry in India is experiencing heightened utilization of blockchain technology for secure, transparent, and unalterable transaction records, especially for international payments and significant transactions. Biometric authentication methods, such as fingerprint and facial recognition, are being merged with payment systems to improve security while ensuring user convenience. Natural language processing and chatbots are enhancing customer support, delivering immediate solutions to payment-related questions and problems.

E-commerce and Q-commerce Expansion with Cross-Border Developments

The explosive growth of e-commerce and quick commerce (q-commerce) platforms is driving unprecedented demand for sophisticated payment gateway solutions that can handle high transaction volumes, multiple payment methods, and instant settlement capabilities. The rise of 10-minute and 30-minute delivery services has necessitated ultra-fast payment processing systems that can handle surge pricing, instant refunds, and real-time inventory management. Contactless and mobile-first payment solutions have become the preferred mode of transactions, with NFC, QR codes, and tap-to-pay technologies becoming standard features across online and offline commerce platforms. Cross-border payment developments are opening new opportunities for Indian payment gateways to facilitate international transactions, remittances, and global e-commerce operations. The expansion of Indian payment systems into international markets, including UPI's rollout in France and other countries, is creating new revenue streams and augmenting the India payment gateways market share. Social commerce and live streaming shopping are driving demand for integrated payment solutions that can handle dynamic pricing, group buying, and instant checkout processes.

Growth, Opportunities, and Challenges in the Indian Payment Gateways Market:

• Government Schemes: The rapid expansion of e-commerce and digital commerce platforms is creating substantial demand for secure, scalable, and feature-rich payment gateway solutions across all business segments. Government initiatives such as Digital India, demonetization, and regulatory support for digital payments are accelerating the adoption of electronic payment systems nationwide.
• Market Opportunities: The untapped potential in rural and semi-urban markets presents significant growth opportunities as digital infrastructure development and financial inclusion initiatives expand payment gateway accessibility. The growing demand for cross-border payment solutions and international expansion of Indian businesses creates opportunities for specialized payment processing services.
• Market Challenges: Intense competition from established players and new fintech entrants creates pricing pressure and margin challenges for payment gateway providers in the highly competitive market environment. Stringent regulatory compliance requirements including data localization, KYC norms, and security standards create operational complexity and compliance costs for market participants.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India payment gateways market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on application and mode of interaction.

Application Insights:

• Large Enterprises
• Micro and Small Enterprises
• Mid-Size Enterprises

The report has provided a detailed breakup and analysis of the India payment gateways market based on the application. This includes large, micro and small, and mid-size enterprises. According to the report, large enterprises represented the largest segment.

Mode of Interaction Insights:

• Hosted Payment Gateways
• Pro/Self-Hosted Payment Gateways
• API/Non-Hosted Payment Gateways
• Local Bank Integrates
• Direct Payment Gateways
• Platform-Based Payment Gateways

A detailed breakup and analysis of the India payment gateways market based on the mode of interaction has also been provided in the report. This includes hosted, pro/self-hosted, API/non-hosted, local bank integrates, direct, and platform-based payment gateways. According to the report, hosted accounted for the largest market share.

Regional Insights:

• North India
• West and Central India
• South India
• East India

The report has also provided a comprehensive analysis of all the major regional markets, which include North, West and Central, South, and East India. According to the report, West and Central India was the largest market for India payment gateways. Some of the factors driving the West and Central India payment gateways market in India included the expanding e-commerce sector, favorable government initiatives, and ongoing advancements in payment technology.

Competitive Landscape:

The report provides a comprehensive analysis of the competitive landscape in the India payment gateways market with detailed profiles of all major companies, including:

• Airpay Payment Services
• Cashfree Payments India Private Limited
• Easebuzz
• Fiserv, Inc.
• IndiaIdeas.com Limited (BillDesk)
• Infibeam Avenues Limited
• IppoPay Technologies Pvt Ltd
• NTT DATA Payment Services
• One MobiKwik Systems Limited
• One97 Communications Limited (Paytm)
• PayU
• PhonePe
• Razorpay Software Limited

Latest News and Developments:

• In January 2025, Razorpay introduced Biometric Authentication for checkout, aiming to simplify the transaction process and enhance security. This new feature eliminates the need for OTPs, allowing users to verify their identity via biometric data, improving speed and user experience, especially in low-connectivity areas. Available for businesses using standard checkout on Android devices, the feature enhances accessibility and is automatically enabled for merchants without any additional setup.
• In August 2024, RBI Governor Shri Shaktikanta Das launched Bharat BillPay (BBPS) for Business and UPI Circle at the Global Fintech Festival. BBPS for Business streamlines B2B transactions through a centralized, interoperable platform. UPI Circle allows users to delegate payments, with a monthly limit of INR 15,000 (USD 180), enhancing India’s digital payment ecosystem.
• In August 2024, PhonePe launched PhonePe PG Bolt, a faster payment gateway offering UPI Lite, Wallets, and Electronic Gift Vouchers with a one-click, PIN-less process. The solution enhances the customer payment experience by eliminating the need for redirection to external payment platforms. Nykaa, a leading beauty and lifestyle retailer in India, is among the first to adopt this new payment solution.
• In August 2024, Zoho introduced Zoho Payments, a comprehensive payment gateway that enables businesses to securely receive payments via UPI. Developed by Zoho Payment Technologies, this solution also incorporates B2B payment features powered by the Bharat Bill Payment System (BBPS) from NPCI. As a result, Zoho Payments is now recognized as a Bharat Bill Payment Operating Unit (BBPOU).

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India payment gateways market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India payment gateways market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India payment gateways industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.