The Indian Ecommerce landscape is a vibrant tapestry of growth and innovation. With its value estimated at over $55 billion in gross merchandise value (GMV) for 2021 and projected to surge to a staggering $350 billion by 2030, the potential is palpable. This exponential growth story is woven from several threads:

  • The proliferation of smartphones is set to encompass more than 907 million users by 2023.

  • The increasing affluence of consumers is expanding the reach of online shopping.

  • The accessibility of affordable data plans that catalyze digital commerce.

This robust industry isn’t confined to metropolitan centres alone, as over 60% of its impact is felt in smaller towns and cities.

While electronics and apparel spearhead Ecommerce, emerging categories like ed-tech, hyperlocal services, and food tech are carving their niches, the government’s role in nurturing this ecosystem is evident through initiatives such as the Open Network for Digital Commerce (ONDC), launched in 2022. ONDC aspires to level the playing field for all players in the Ecommerce arena, fostering a landscape of equal opportunities and digital empowerment, particularly for MSMEs.

As India’s Ecommerce narrative unfolds, it’s evident that this industry’s potential is immense, supported by dynamic policies and government initiatives. The average selling price (ASP) in tier-2 and smaller towns is nearly on par with metro cities, reflecting widespread adoption.

Notably, Indian Ecommerce and consumer internet companies witnessed a remarkable PE/VC funding surge, escalating from $8.2 billion in 2020 to $15.4 billion in 2022. As we dive into the nuances of this thriving sector, the significance of payment gateways emerges, serving as the vital conduits that enable seamless transactions in this dynamic digital marketplace.

What is Ecommerce payment gateway?

An Ecommerce payment gateway facilitates online transactions between customers and merchants, securely processing payment information like credit card details. It is a crucial link connecting the merchant’s website and the payment processor, ensuring the transaction’s security and timely completion. By employing an Ecommerce payment gateway, merchants can conveniently accept payments from online customers, enhancing the overall ease and efficiency of their online payment processes.

Exploring the significance of Ecommerce payment gateways in India

The Indian Ecommerce Payment Gateway is a remarkable testament to the country’s digital transformation. As India’s digital payment sector surges forward, it not only stimulates economic growth but also fuels the emergence of intricate payment ecosystems, exemplified by the rise of Neo-Banking.

Amid this evolution, the government’s proactive efforts are directed at modernising and standardising various facets of India’s Ecommerce operations. These encompass aspects like payment collections, privacy measures, data protection protocols, and international trade regulations, all pivotal in fostering a conducive environment for digital commerce.

A significant shift is observable in adopting innovative payment methods within this landscape. UPI (Unified Payments Interface), Payment Links, and digital wallets have witnessed a rapid ascent in India’s Ecommerce payment market, previously dominated by cash transactions. UPI, in particular, has gained prominence among consumers, commanding a voluminous share of 64% in transaction volume and 50% in transaction value. Additionally, digital wallets have carved their niche as a swiftly growing payment avenue, constituting a quarter of all Ecommerce payments.

Easebuzz, a leading provider of comprehensive payment management tools tailored for Ecommerce platforms, is at the forefront of facilitating these transformations. With a suite of solutions encompassing payments, refunds, transfers, subscriptions, and invoices, Easebuzz empowers Ecommerce businesses to manage an array of transaction types efficiently.

Delving deeper into its capabilities, Easebuzz addresses intricate Ecommerce payment challenges. The platform enables solutions such as Split payments, Auto recurring payments (eNACH/paper-e-mandate/UPI2.0), Auto refunds on split transactions, Sub aggregator Model, Slices, and Easebuzz Capital. These features exemplify Easebuzz’s commitment to empowering Ecommerce platforms in overcoming intricate payment hurdles.

In this ever-evolving landscape, the Indian Ecommerce Payment Gateway, coupled with Easebuzz’s robust solutions, embarks on a journey of innovation and empowerment, catalyzing the growth of India’s digital economy.

Best payment gateway role in Ecommerce

Within the realm of Ecommerce, the essence of a payment gateway takes centre stage as a pivotal process that facilitates the acceptance and seamless processing of online payments. This intricate mechanism orchestrates the transfer of funds across the digital landscape, serving as a crucial conduit between customers and merchants. To initiate this transaction, customers are prompted to share their credit or debit card details, including expiration dates and CVV codes. Armed with this information, buyers embark on the payment journey, culminating in the transfer of funds into the awaiting coffers of the merchants.

In this intricate interplay, the payment gateway emerges as a guardian of secure transactions, harnessing the power of encryption and advanced authentication protocols to ensure the confidentiality of sensitive financial data. Beyond its role as a digital guardian, the payment gateway stands as the linchpin that connects the virtual shopping cart with real-world financial institutions. It adeptly transforms the aspirations of online shoppers into tangible monetary exchanges, translating browsing and selection into swift and secure transactions.

Furthermore, the significance of payment gateways extends beyond the mechanics of transaction processing. They play an instrumental role in enhancing customer trust and fostering seamless user experiences. By ensuring that the payment process is intuitive, efficient, and devoid of complications, payment gateways contribute to cultivating customer loyalty and satisfaction. This, in turn, augments brand reputation and encourages repeat transactions, thereby nurturing the growth and sustainability of Ecommerce enterprises.

How payment gateway helps the Ecommerce platforms

  • Online payment gateways play a crucial role by enabling merchants and customers to authorise transactions over the Internet seamlessly.

  • They serve as intermediaries, facilitating secure transactions between merchants and customers.

  • Ecommerce platforms incorporating payment gateways enhance their ecosystem, enhancing customer shopping experience.

  • These gateways ensure quick and secure payments and streamline the entire process, making it user-friendly and efficient.

  • Payment gateway services are provided either by banks or authorised third-party providers, ensuring a trustworthy and regulated payment environment.

Ecommerce payment gateway: How it operates

Ecommerce businesses actively receive electronic payments from customers, subject to several intermediary steps before the seller gains access to the funds.

Stages within Ecommerce payment gateways process:

1. Checkout:

Customers complete the checkout process by inputting payment information.

2. Transmitting Information:

Secure payment gateways capture and encrypt credit card or payment details.a seamless user experience. Self-hosted payment gateways need extra security.

3. Issuer Confirmation:

The payment processor validates the purchase with the issuing bank for credit card transactions. Sometimes, the bank may also communicate with the customer.

4. Transaction Approval:

Once the bank confirms the payment, the payment processor informs the customer about the successful transaction. After bank validation, shipping and fulfilment processes are initiated.

5. Fund Transfer:

While the transaction appears complete for customers, sellers wait to receive the funds. The money is transferred to the seller’s Ecommerce accounting software after a few days, formalising the transaction.

Key features of online payments for Ecommerce platforms

1. Customer Security:

Customer security is paramount when purchasing online. Concerns about personal information safety are valid, making security a top priority. Online transactions should prioritise security to ensure a worry-free shopping experience.

2. RBI and Government Regulations:

Online payments are secure due to established government and RBI guidelines, including PCI-DSS standards. Compliance with these standards by payment processors guarantees secure transportation of customer data.

3. Payment Methods:

Customers favour debit/credit cards or digital wallets. The availability of preferred payment options on the checkout page is crucial; a missing option may lead customers to abandon their purchase.

4. Payment Gateway Integration:

Seamless experiences are crucial. Integrated payment gateways offer instant notifications, reducing administrative work and providing a smooth customer journey. Integration eliminates manual payment handling.

5. Enhanced Checkout Integration:

The checkout page’s design is vital for a user-friendly experience. Clear instructions and requesting only essential information streamline the process. Product and payment details should be easily accessible.

6. Swift Transaction Processing:

Quick transaction processing ensures a seamless shopping experience. Efficient fund flow between retailer and customer enhances satisfaction.

Easebuzz, a payment gateway, simplifies online payment acceptance, enhancing transaction speed for Ecommerce platforms. Alongside the listed features, Easebuzz offers services like free web store creation, SMS-based invoicing, custom decks, and free payment collection links.

In conclusion,

Adopting payment gateways is imperative for merchants to thrive in the expanding virtual shopping sector. The appropriate payment gateway can enhance profitability, reduce costs, and ensure enduring success, allowing businesses to outshine competitors. Carefully assess your business requirements and future objectives to select the ideal Ecommerce payment gateway that aligns with your business.


1. Which payment gateway is the best for Ecommerce websites in India?

Easebuzz is one of India’s premier payment gateway providers for Ecommerce websites. Their platform offers diverse payment options, competitive pricing, and efficient customer support. The simplicity of use and rapid setup process contribute to their popularity among businesses.

2. How does a payment gateway function in Ecommerce?

A payment gateway in Ecommerce securely processes online transactions between merchants and customers. It is a conduit between the customer’s chosen payment method and the merchant’s bank account. Payment gateways ensure the secure transmission of sensitive financial data and the accurate and swift processing of payments. This enhances the ease and convenience of online transactions for customers and merchants.

3. What are the categories of payment gateways in Ecommerce?

The main categories of payment gateways in Ecommerce encompass hosted and integrated payment gateways. The hosted gateways direct customers to an external website for payment completion, while integrated gateways allow customers to make payments without leaving the merchant’s site. The choice between these types depends on the business’s specific needs, each offering benefits and drawbacks.

4. Which Ecommerce models require a payment gateway?

A payment gateway is essential for all types of Ecommerce models, including B2B, B2C, and C2C. It facilitates online transactions and payments between buyers and sellers, making it indispensable for any Ecommerce website. Devoid of a payment gateway, businesses would be severely restricted in their capacity to conduct online transactions and accept payments.

5. What defines a Payment Gateway in Ecommerce?

In Ecommerce, a payment gateway is an online service that empowers businesses to accept electronic payments from their customers. It is a secure intermediary connecting the customer’s bank account with the merchant’s. By processing transactions and facilitating fund transfers, payment gateways are pivotal for Ecommerce websites, ensuring swift and efficient payment acceptance.