Comparison · Updated November 15, 2026
Razorpay vs Instamojo (India online payments)
Razorpay
B-
Razorpay is the largest online payment aggregator in India, founded in Bengaluru in 2014 by Harshil Mathur and Shashank Kumar and licensed by the Reserve Bank of India as an online, offline and cross-border payment aggregator. It charges a published flat 2% platform fee plus 18% GST on domestic cards, UPI, netbanking and wallets, with no setup fee, no annual charge and free refunds, and reported operating revenue of ₹3,783 crore for the year to March 2025 on an annualised payment volume it put at $180 billion. The product is genuinely good and the pricing is clear; the reason it does not grade higher is the other side of the ledger: a Trustpilot score of 1.4 from 449 reviews dominated by frozen accounts and held settlements, a year-long RBI ban on onboarding new merchants that ended in December 2023, and a corporate story — a March 2025 reverse flip from the United States to India, a one-time charge that pushed it into loss, and a confidential IPO filing in June 2026 — that is still being written.
Instamojo
C+
Instamojo is a Bengaluru company, founded in 2012, that sells online stores, landing pages and payment links to small Indian businesses, with payments built in. As of October 2026 its pricing page lists 2% + ₹3 per payment by UPI, Indian cards, netbanking, wallets and pay later, and 3% + ₹3 on corporate cards, with 18% GST charged on top of the fee. The free store and landing-page plans charge 5% + ₹3, and digital goods cost more. Money reaches your bank three business days after the sale unless you pay extra for faster payouts. Instamojo used to run its own payment aggregation business, but on 27 September 2023 the Reserve Bank of India returned its application for an aggregator licence, and RBI's own list, dated 1 October 2026, still shows it that way. The company says it moved merchants' payment accounts to licensed aggregators, with fresh KYC. Merchants told the press their payouts were stuck for weeks during the switch. Its Trustpilot page is dominated by one-star reviews about delayed payouts, KYC and unanswered support. Instamojo is a cheap, simple way for a very small Indian seller to start taking payments, but choose it for the store software, and get written answers on who holds your money before relying on it.
VS
Overview
We compare the two for a small business in India collecting online payments in rupees from Indian customers by UPI, domestic debit and credit cards, netbanking and wallets, on the standard prices each publishes, read on 15 November 2026. All fees are shown before GST; both add 18% GST to their fee, not to the sale. Razorpay charges a flat 2% platform fee on these methods with no setup or annual fee. Instamojo charges 2% + ₹3 on its payment gateway, payment links and paid store plans, and 5% + ₹3 on its free store and landing-page plans. On a ₹1,000 sale that is ₹20 + GST at Razorpay against ₹23 + GST at Instamojo, or ₹53 + GST on Instamojo's free store. Razorpay's settlement documentation gives T+2 working days and Instamojo's gateway page three business days, though each provider publishes a shorter figure elsewhere (Razorpay's pricing FAQ says typically T+1; Instamojo's payments terms say T+1), so we do not call a winner on payout speed; Instamojo sells faster payouts for 0.25% to 1%. UPI payments carry no merchant discount rate today (a 0.4% MDR on merchant UPI payments above ₹2,000, announced for 15 October 2026, has been deferred with no new date as of mid-November 2026), but both charge their own fee on UPI payments. The bigger difference is regulatory: Razorpay Payments Private Limited holds the Reserve Bank of India's payment aggregator authorisation, while the RBI returned Instamojo's application in September 2023 and Instamojo now routes payments through licensed partner aggregators. Instamojo's case rests on its store builder, landing pages and payment links for sellers without a website.
Key Takeaways
- ✓Razorpay's standard gateway rate is lower than Instamojo's: 2% against 2% + ₹3 on Instamojo's gateway, links and paid store plans, and 5% + ₹3 on its free store plans, all plus 18% GST.
- ✓Razorpay's documentation gives settlement in T+2 working days; Instamojo advertises payouts in three business days, with next-day, same-day and instant payouts at 0.25%, 0.5% and 1% plus GST. Both publish conflicting shorter figures elsewhere.
- ✓Razorpay holds the RBI's payment aggregator authorisation; the RBI returned Instamojo's application in September 2023, and its payments now run through licensed partner aggregators.
- ✓Instamojo bundles a hosted online store, landing pages and payment links with free plans, which suits a very small seller with no website; it does not support subscriptions.
- ✓New Razorpay merchants activated from 1 July 2026 pay no platform fee on most domestic payments for 90 days or the first ₹5 lakh, whichever comes first.
Razorpay
Razorpay suits most Indian businesses selling online: a flat 2% + GST across UPI, cards, netbanking and wallets, no setup or annual fee, T+2 working-day settlement, subscriptions, and the RBI's own payment aggregator authorisation. Its Trustpilot reviews complain about compliance holds on settlements, so keep KYC documents complete.
Instamojo
Instamojo suits a very small seller, creator or home business that wants a store, landing page or payment link live without a website or developer, and accepts 2% + ₹3 (or 5% + ₹3 on free plans) plus GST and a three-day payout. Ask in writing which licensed aggregator will hold your money before you rely on it.
Overall Winner
🏆 Winner
Razorpay
B-expert grade
Runner-up
Instamojo
Why?
For most Indian businesses selling online, Razorpay is the better choice. Its standard 2% + GST gateway rate is lower than Instamojo's 2% + ₹3 + GST on every payment, and far lower than the 5% + ₹3 on Instamojo's free store plans; it supports subscriptions; and it holds the RBI's payment aggregator authorisation itself, while Instamojo's application was returned in 2023 and its payments now go through partner aggregators. Instamojo still earns a place for a very small seller with no website who wants a ready-made store or landing page with payments built in, on a free plan, and can live with higher fees. Both have weak Trustpilot scores driven by payout and KYC complaints, so keep your documents in order whichever you pick.
Feature by feature
Detailed Comparison
Filter Options
Online fees (India, INR, before 18% GST)
| Feature | Razorpay | Instamojo |
|---|---|---|
| UPI, domestic cards, netbanking, wallets | 2% Winner | 2% + ₹3 |
| As of November 2026. Instamojo's 2% + ₹3 applies to its payment gateway, payment links, the Growth store plan and the Smart Pages Pro plan; its free Lite store, Starter store and Basic Smart Pages plans charge 5% + ₹3. Both add 18% GST on the fee. UPI and RuPay debit currently carry a zero merchant discount rate under Indian rules; Razorpay says its 2% on them is a platform fee, and Instamojo lists UPI at the same 2% + ₹3. The government announced a 0.4% MDR on merchant UPI payments above ₹2,000 (capped at ₹300) from 15 October 2026; NPCI deferred it and no new date had been set as of mid-November 2026, and how either provider would pass it on is not published. This row is Razorpay's standard gateway rate: its May 2026 machine-readable rate card also lists Payment Pages and Payment Buttons at 0.2% plus gateway fees, while its pricing page says they cost the same as the gateway. New Razorpay merchants activated on or after 1 July 2026 pay no platform fee for 90 days or ₹5 lakh of volume, whichever comes first, excluding prepaid, corporate, Amex, Diners and EMI payments, and may be charged a ₹199 KYC fee. | ||
| Digital products | 2% Winner | 5% + ₹3 |
| Instamojo's gateway page charges 5% + ₹3 + GST on digital goods, and its store plans charge 10% + ₹3 for digital products on Lite and Starter and 5% + ₹3 on Growth. Razorpay's India rate card has no separate digital-goods rate; its 2% platform fee applies to all domestic instruments, so a digital seller pays the standard 2% + GST. | ||
| International cards | Up to 3% | Not disclosed |
| Razorpay's India rate card lists international cards at up to 3% plus GST, settled in INR in about T+7 working days. Instamojo's pricing page marks international cards 'Request Now' and says they are subject to KYC approval, with no published rate. | ||
UPI, domestic cards, netbanking, wallets
Razorpay
2%
Winner
Instamojo
2% + ₹3
As of November 2026. Instamojo's 2% + ₹3 applies to its payment gateway, payment links, the Growth store plan and the Smart Pages Pro plan; its free Lite store, Starter store and Basic Smart Pages plans charge 5% + ₹3. Both add 18% GST on the fee. UPI and RuPay debit currently carry a zero merchant discount rate under Indian rules; Razorpay says its 2% on them is a platform fee, and Instamojo lists UPI at the same 2% + ₹3. The government announced a 0.4% MDR on merchant UPI payments above ₹2,000 (capped at ₹300) from 15 October 2026; NPCI deferred it and no new date had been set as of mid-November 2026, and how either provider would pass it on is not published. This row is Razorpay's standard gateway rate: its May 2026 machine-readable rate card also lists Payment Pages and Payment Buttons at 0.2% plus gateway fees, while its pricing page says they cost the same as the gateway. New Razorpay merchants activated on or after 1 July 2026 pay no platform fee for 90 days or ₹5 lakh of volume, whichever comes first, excluding prepaid, corporate, Amex, Diners and EMI payments, and may be charged a ₹199 KYC fee.
Digital products
Razorpay
2%
Winner
Instamojo
5% + ₹3
Instamojo's gateway page charges 5% + ₹3 + GST on digital goods, and its store plans charge 10% + ₹3 for digital products on Lite and Starter and 5% + ₹3 on Growth. Razorpay's India rate card has no separate digital-goods rate; its 2% platform fee applies to all domestic instruments, so a digital seller pays the standard 2% + GST.
International cards
Razorpay
Up to 3%
Instamojo
Not disclosed
Razorpay's India rate card lists international cards at up to 3% plus GST, settled in INR in about T+7 working days. Instamojo's pricing page marks international cards 'Request Now' and says they are subject to KYC approval, with no published rate.
Best For Your Business
Recommendations based on your business type
Business with its own website or app selling to Indian customers
Recommended
Razorpay
Razorpay's flat 2% + GST, T+2 settlement, SDKs and plugins make it the cheaper and more complete gateway.
Home seller or creator with no website who wants a ready-made store
Recommended
Instamojo
Instamojo's free Lite store and landing pages come with payments built in and need no developer, though the free plans charge 5% + ₹3 plus GST per sale.
SaaS, coaching or membership business billing every month
Recommended
Razorpay
Razorpay supports subscriptions, UPI AutoPay and e-mandates; Instamojo says it does not support recurring payments.
Seller who needs money in the bank quickly
Both. Neither has a clear edge: Razorpay documents T+2 working days and Instamojo three business days, but each also publishes a shorter figure. Instamojo publishes its faster-payout fees (0.25% to 1% + GST); Razorpay's instant settlement is on request at an unpublished fee.
Seller of digital products such as e-books or courses
Recommended
Razorpay
Instamojo charges 5% + ₹3 or more on digital goods; Razorpay has no separate digital-goods rate, so its standard 2% applies.
Razorpay: Best for 3 use cases
Instamojo: Best for 1 use case
Frequently Asked Questions
Common questions about this comparison
Razorpay, on standard gateway rates as of November 2026. It charges 2% on UPI, domestic cards, netbanking and wallets; Instamojo charges 2% + ₹3 on its gateway, links and paid store plans and 5% + ₹3 on its free store plans. Both add 18% GST on the fee. On a ₹1,000 sale that is ₹23.60 at Razorpay and ₹27.14 at Instamojo, including GST.
Yes. UPI currently has a zero merchant discount rate, but both charge their own fee: Razorpay a 2% platform fee and Instamojo 2% + ₹3, each plus 18% GST. A 0.4% MDR on merchant UPI payments above ₹2,000, announced for 15 October 2026, was deferred by NPCI and had no new start date as of mid-November 2026. New Razorpay merchants activated from 1 July 2026 pay no platform fee for their first 90 days or ₹5 lakh of domestic volume, whichever comes first.
Razorpay's documentation says it settles domestic payments to your bank in T+2 working days (its pricing FAQ says typically T+1), and it offers instant settlement on request for an unpublished fee. Instamojo says it pays out in three business days (its payments terms say T+1), with next-day, same-day and instant payouts at 0.25%, 0.5% and 1% plus GST if you are eligible.
Not as a payment aggregator. The RBI returned Instamojo Technologies' application on 27 September 2023, and its status list as on 1 November 2026 still shows that. Instamojo says it moved merchants' payment accounts to licensed partner aggregators. Razorpay Payments Private Limited is on the RBI's list of authorised payment aggregators.
Instamojo is built for it: a free Lite store, paid Starter and Growth plans, and Smart Pages landing pages, all with payments included. Razorpay offers payment pages, payment buttons and a newer Webstore product, but most of its customers connect it to their own site or a platform such as Shopify or WooCommerce.
No. Instamojo says it does not support recurring or subscription payments and offers scheduled payment requests instead. Razorpay Subscriptions supports recurring billing on cards, UPI AutoPay and e-mandates.
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