What is Razorpay?

Razorpay is India’s leading payment gateway designed specifically for Indian businesses. Founded in 2014 by IIT Roorkee alumni, Razorpay has become the go-to payment solution for startups, SMEs, and large enterprises across India. Unlike generic international payment processors, Razorpay deeply understands the Indian payment ecosystem.

Key Razorpay Offerings:

• Payment Gateway: Accept payments via UPI, cards, netbanking, wallets, and more
• Payment Links: Share payment links via WhatsApp, SMS, or email
• Subscriptions: Automated recurring billing for subscription businesses
• Smart Collect: Accept bank transfers with virtual accounts
• Route: Split payments for marketplace models
• Razorpay X: Complete banking and payout solution

What Are Traditional Payment Gateways?

Traditional payment gateways refer to established international payment processors like PayPal, Stripe (when used directly), and direct bank integrations. While these solutions work globally, they often lack features specific to the Indian market.

Common Traditional Options in India:

• Bank Payment Gateways: HDFC, ICICI, Axis Bank payment solutions
• PayU: International payment processor with Indian operations
• CCAvenue: One of India’s oldest payment gateways
• Instamojo: Payment gateway targeting small businesses
• Direct Bank Integration: Integrating with banks individually

Head-to-Head Comparison

1. Payment Methods Support

Razorpay:

• ✅ UPI: Google Pay, PhonePe, Paytm, BHIM, and 150+ UPI apps
• ✅ Cards: Credit cards, debit cards, international cards
• ✅ Netbanking: 50+ banks supported
• ✅ Wallets: Paytm, Mobikwik, FreeCharge, Amazon Pay, and more
• ✅ EMI: Cardless EMI, Credit card EMI (all major banks)
• ✅ Pay Later: LazyPay, Simpl, ZestMoney, ePayLater
• ✅ Bank Transfers: IMPS, NEFT, RTGS
• ✅ International Cards: Accept global payments

Traditional Payment Gateways:

• ⚠️ UPI: Limited or delayed UPI support in many gateways
• ✅ Cards: Good credit/debit card support
• ✅ Netbanking: Usually 30-40 banks
• ⚠️ Wallets: Limited wallet options, often just 2-3
• ⚠️ EMI: Available but complex setup required
• ❌ Pay Later: Rarely supported
• ⚠️ Bank Transfers: Limited or manual process
• ⚠️ International Cards: Additional documentation required

Winner: Razorpay – Comprehensive coverage of all payment methods Indians actually use, with seamless UPI integration that’s critical for Indian eCommerce.

2. Pricing and Transaction Fees

Razorpay Pricing:

Additional Fees:

• Setup Fee: ₹0 (Free)
• Annual Maintenance: ₹0 (Free)
• Payment Link: ₹0 (Free)
• Dashboard Access: ₹0 (Free)
• Settlement: Free (T+1 to T+3 days)

Traditional Payment Gateway Pricing:

Winner: Razorpay – No hidden fees, transparent pricing, and significantly lower total cost of ownership. A business processing ₹10 lakh monthly saves ₹40,000+ annually in setup and maintenance fees alone.

3. Setup and Integration Complexity

Razorpay + Store.icu:

• ⏱️ Setup Time: 10-15 minutes
• 🔧 Technical Skill Required: None (plug and play)
• 📋 Documentation Required: PAN, Bank Account, Business Details
• ✅ Instant Activation: Many accounts activated within hours
• 🎯 Single Integration: One API key connects everything
• 📱 Mobile Optimized: Works perfectly on all devices
• 🔄 Automatic Updates: New payment methods added automatically

Traditional Payment Gateways:

• ⏱️ Setup Time: 1-4 weeks
• 🔧 Technical Skill Required: High (custom integration often needed)
• 📋 Documentation Required: Extensive paperwork, multiple forms
• ⏳ Approval Process: 7-21 days typical
• 🎯 Complex Integration: Often requires developer
• 📱 Mobile Support: Varies, often problematic
• 🔄 Manual Updates: New features require re-integration

Winner: Razorpay – Dramatically faster time-to-market with Store.icu’s native integration. What takes weeks with traditional gateways takes minutes with Razorpay.

4. Settlement Speed and Flexibility

Razorpay:

• Standard Settlement: T+2 days (2 working days)
• Instant Settlement: Available for verified businesses (small fee)
• On-Demand Settlement: Request settlements anytime
• Split Settlement: For marketplaces and platforms
• No Minimum Amount: Settle any amount
• Automatic: No manual intervention required
• Bank Compatibility: All major banks supported

Traditional Payment Gateways:

• Standard Settlement: T+3 to T+7 days
• Instant Settlement: Rarely available
• On-Demand Settlement: Usually not available
• Split Settlement: Complex or unavailable
• Minimum Amount: Often ₹1,000 – ₹5,000 minimum
• Manual Requests: May require calling/emailing
• Bank Restrictions: May only work with specific banks

Winner: Razorpay – Faster settlements mean better cash flow. For small businesses, this can be critical for operations.

5. Customer Experience

Razorpay Checkout:

• ✅ Mobile-First Design: Optimized for smartphone payments
• ✅ One-Click Repeat: Save customer details for future purchases
• ✅ Magic Checkout: Pre-fill customer details automatically
• ✅ Smart Routing: Automatically selects best payment path
• ✅ Multiple Languages: Support for 10+ Indian languages
• ✅ Low Failure Rate: Industry-leading 98%+ success rate
• ✅ Quick Load: Checkout loads in under 2 seconds
• ✅ Retry Logic: Automatically retries failed payments

Traditional Payment Gateway Experience:

• ⚠️ Desktop-First: Often clunky on mobile
• ❌ No Saved Details: Customers re-enter info every time
• ❌ Manual Entry: No intelligent pre-fill
• ❌ Random Routing: No optimization
• ⚠️ English Only: Limited language support
• ⚠️ Higher Failures: 85-90% success rate typical
• ⚠️ Slow Loading: 5-10 second load times
• ❌ No Retry: Customer must start over

Winner: Razorpay – Superior UX leads to 15-25% higher payment success rates and lower cart abandonment.

6. Developer and Business Tools

Razorpay Dashboard and Tools:

• Real-Time Analytics: Live transaction monitoring
• Payment Links: Share via WhatsApp/SMS without website
• Invoicing: Create and send invoices with payment buttons
• Subscriptions: Automated recurring billing
• Smart Collect: Accept bank transfers automatically
• Refund Management: Instant refunds with one click
• Fraud Detection: AI-powered risk scoring
• API Access: Comprehensive, well-documented APIs
• Webhooks: Real-time notifications
• Test Mode: Sandbox for testing

Traditional Gateway Tools:

• Basic Reporting: Limited analytics, often delayed
• No Payment Links: Requires full integration
• Manual Invoicing: No built-in invoice tools
• Basic Subscriptions: Limited or unavailable
• No Smart Collect: Manual bank transfer reconciliation
• Slow Refunds: 5-7 days processing time
• Basic Fraud Tools: Minimal protection
• Limited API: Often poorly documented
• No Webhooks: Must poll for updates
• No Test Mode: Must test on production

Winner: Razorpay – Complete suite of business tools that grow with your Store.icu business.

Real-World Cost Comparison

Let’s examine the actual costs for a typical Store.icu store processing ₹5 lakh monthly:

*Based on typical pricing for ₹5 lakh monthly GMV. Actual costs may vary.

When Traditional Payment Gateways Might Make Sense

While Razorpay wins in most categories, traditional gateways might be better if:

• You already have a bank gateway: If you’re already set up and it’s working fine
• Very high transaction volumes: Some banks offer lower rates for ₹10+ crore monthly
• Specific bank requirements: Your business bank requires their gateway
• Government/PSU sector: Some government entities have mandatory gateway requirements

However, even in these cases, Razorpay can often work alongside existing systems.

Success Stories: Store.icu Merchants Using Razorpay

“We were using a bank payment gateway and losing 20-25% of customers at checkout. After switching to Razorpay through Store.icu, our payment success rate jumped to 95%. The UPI integration alone increased our conversions by 30%. Plus, we’re saving ₹3,000 per month in fees.”

“Traditional payment gateways wanted ₹50,000 upfront and took 3 weeks to approve. With Razorpay and Store.icu, I was accepting payments within 24 hours with zero setup cost. Game changer for small businesses like mine.”

“The payment links feature is incredible. I can send a WhatsApp payment link to customers even before they visit my Store.icu site. It’s helped me close deals 40% faster. Traditional gateways don’t even offer this.”

Making the Switch: How to Transition to Razorpay

Already using a traditional payment gateway? Here’s how to smoothly transition to Razorpay on Store.icu:

Step 1: Sign Up for Razorpay (5 minutes)

1. Visit razorpay.com
2. Click “Sign Up” and provide business details
3. Complete KYC with PAN and bank account
4. Await approval (usually within 24-48 hours)

Step 2: Integrate with Store.icu (10 minutes)

1. Log into your Store.icu dashboard
2. Navigate to Settings → Payments
3. Click “Add Payment Method”
4. Select “Razorpay”
5. Enter your Razorpay API keys
6. Enable and test

Step 3: Run Parallel (1-2 weeks)

1. Keep both gateways active initially
2. Monitor Razorpay performance
3. Compare success rates and customer feedback
4. Build confidence in the new system

Step 4: Complete Migration

1. Disable old payment gateway
2. Update all payment touchpoints
3. Notify customers of new payment options
4. Cancel old gateway subscription

Integration with Store.icu: The Perfect Match

Store.icu’s white-label eCommerce platform is built to work seamlessly with Razorpay. Here’s what you get:

• Native Integration: Pre-built Razorpay connector in dashboard
• Automatic Sync: Orders sync with payments instantly
• One-Click Refunds: Process refunds from Store.icu admin
• Order Status Updates: Payment status updates automatically
• Multi-Currency Support: Accept international payments (if enabled)
• Subscription Products: Sell subscription boxes with recurring billing
• Analytics Integration: See payment data in Store.icu reports

Learn More About Store.icu + Razorpay →

Frequently Asked Questions

Is Razorpay only for large businesses?

Not at all! Razorpay is perfect for businesses of all sizes. With zero setup fees and no minimum transaction requirements, it’s actually more accessible for small businesses than traditional gateways that demand ₹15,000-50,000 upfront.

What documents do I need for Razorpay?

You’ll need: (1) PAN Card, (2) Business PAN or Registration Certificate, (3) Bank Account Proof, (4) Address Proof. The entire KYC process is online and typically completes within 24-48 hours.

Can I use Razorpay with my existing business bank account?

Yes! Razorpay works with all major banks in India. You don’t need to change your bank account or open a new one.

What happens to my existing customers if I switch?

Switching to Razorpay improves the customer experience. They’ll see more payment options (especially UPI), faster checkout, and higher success rates. No negative impact—only improvements.

How long does Razorpay approval take?

Most businesses get approved within 24-48 hours. Some complex cases may take up to 5-7 days. This is significantly faster than traditional gateways which take 1-4 weeks.

Are there any hidden fees?

No. Razorpay’s pricing is completely transparent: 2% + GST for domestic payments, 3% + GST for international. No setup fees, no annual fees, no surprise charges.

Can I accept international payments with Razorpay?

Yes! Razorpay supports international card payments. You’ll need to complete additional documentation for RBI compliance, but the feature is available to all merchants.

The Verdict: Which is Better for Store.icu?

For the vast majority of Indian eCommerce businesses using Store.icu, Razorpay is the clear winner. Here’s the final scorecard:

Take Action: Start Accepting Payments the Modern Way

The Indian payment landscape has transformed. What worked five years ago—slow approvals, high fees, limited payment methods—no longer serves growing businesses. Razorpay was built specifically to solve these problems for Indian entrepreneurs.

If you’re serious about growing your Store.icu business, choosing the right payment gateway isn’t optional—it’s essential. Every percentage point of conversion matters. Every day of faster settlement helps. Every rupee saved in fees compounds.

Building your online store? Store.icu offers white-label eCommerce site building with native Razorpay integration, making it easy to launch your Indian online store with professional payments built right in.