Comparison · Updated October 2, 2026
Razorpay vs PayU
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.
PayU (India)
B-
PayU India is the Indian payment gateway of Prosus, the Amsterdam-listed technology group majority owned by Naspers. According to PayU's own timeline the gateway was launched in 2011 by ibibo, the Naspers-backed Indian internet group, and demerged from it as PayU India in 2014; it bought Citrus Pay in 2016 and the card-authentication company Wibmo in 2019, and is run by Anirban Mukherjee, who became global PayU chief executive in October 2023. This review covers PayU India only: Prosus agreed in 2023 to sell PayU's businesses outside India, Turkey and South-East Asia to Rapyd for US$610 million, Rapyd completed the Latin American and African part in March 2025, and PayU sites in other countries are different companies with different terms. The contracting entity, PayU Payments Private Limited of Gurugram, received final RBI authorisation as an online payment aggregator in May 2025 and, according to November 2025 press reports, an integrated authorisation covering online, offline and cross-border payments. That came after the RBI returned its first application in January 2023 and PayU stopped onboarding new online merchants until it announced in-principle approval in April 2024. As of September 2026 PayU's pricing page lists 2% for domestic Visa and Mastercard cards, net banking, BNPL and wallets and 3% for Diners, American Express, EMI and international transactions, plus 18% GST, with no setup fee and T+2 standard settlement. UPI, priority settlement, POS and detailed international pricing are quoted, not published. The trade-offs are terms that let PayU hold settlements, demand reserves and keep funds for 210 business days after termination, and weak public merchant feedback.
VS
Overview
Razorpay and PayU India publish the same headline prices. Both charge 2% on domestic Visa and Mastercard cards, net banking and wallets, and 3% on Amex, Diners, EMI and international cards. GST at 18% is added to the fee on both, so the all-in cost is 2.36% and 3.54%. The differences are elsewhere. Razorpay publishes a 2% platform fee on UPI; PayU says its UPI pricing varies by business type and volume. Razorpay runs a 0% new-merchant offer and publishes its subscriptions add-on. PayU says it typically settles international payments in T+2 business days; Razorpay says typically T+7. The contracts differ too. PayU's agreement needs 30 days' written notice from either side, and after termination PayU can hold back funds for up to 210 business days. Razorpay can close an account at any time, and it can withhold a sum sized to your chargeback ratio for 120 days. Both hold RBI payment aggregator licences, and both are graded B- on Payment Review. This comparison covers PayU's Indian business (payu.in) only.
Key Takeaways
- ✓It depends on your payment mix: the standard rates are identical. Both charge 2% + GST on domestic cards, net banking and wallets and 3% + GST on Amex, Diners, EMI and international cards, as of October 2026.
- ✓Razorpay is easier to cost up front. It publishes a 2% platform fee on UPI, a 0.5% subscriptions add-on (limited-time; 0.9% standard) and a 0% offer for new merchants. PayU publishes none of these.
- ✓PayU settles international card payments faster: typically T+2 business days, against typically T+7 on Razorpay, by each company's own figures. Domestic payments settle on T+2 on both.
- ✓PayU's contract holds money longer after you leave: up to 210 business days at PayU's discretion, against a chargeback-ratio-based withholding for 120 days on Razorpay. In return, PayU must give 30 days' written notice to end the agreement without cause, where Razorpay can close an account at any time. Both can end it at once for fraud or breach.
- ✓Both are RBI-authorised online, physical and cross-border payment aggregators. Razorpay has held its online licence since December 2023, PayU since May 2025. Both have poor Trustpilot scores.
Razorpay
Razorpay suits new and smaller Indian businesses that want to sign up and see their costs online, including UPI, subscriptions and a 0% start.
PayU (India)
PayU suits Indian businesses with a meaningful share of international card sales, which PayU says typically settle on T+2 rather than T+7, and those that want 30 days' notice before their gateway can end the agreement without cause.
The Verdict
It Depends on Your Needs
Why?
Both are graded B-, and their standard rates are identical: 2% + GST on domestic cards, net banking and wallets, 3% + GST on Amex, Diners, EMI and international cards. Razorpay publishes more of its pricing, including UPI, subscriptions and a 0% new-merchant offer. Its post-termination holdback is tied to your chargeback ratio and lasts 120 days, against an amount PayU decides for up to 210 business days. PayU says it typically settles international payments on T+2 rather than T+7, and its contract gives you 30 days' notice before it can end the agreement without cause. Choose Razorpay if you want to sign up and cost everything online. Choose PayU if international cards are a large share of your sales, or if you will negotiate custom pricing anyway.
Feature by feature
Detailed Comparison
Filter Options
Payment rates (India, INR, standard plan, + 18% GST on both, October 2026)
| Feature | Razorpay | PayU (India) |
|---|---|---|
| Domestic Visa and Mastercard cards, net banking and wallets | 2% + GST | 2% + GST |
| The same on both: 2.36% with GST, or ₹23.60 on a ₹1,000 sale. Razorpay's standard plan lists a 2% platform fee; its pricing blog applies it to cards, UPI, net banking and wallets. PayU's pricing page lists 2% 'for Visa, Mastercard, Net Banking, BNPL, Wallets', for domestic transactions only. PayU's page does not mention RuPay. Pay Later (BNPL) is 2% on PayU. Razorpay's pricing blog lists Pay Later at 3% in its method table and at 2% in its fee summary, and its standard-plan footnote does not mention it, so it is not compared as a row. | ||
| UPI | 2% + GST (platform fee) | Not disclosed |
| Both say UPI carries zero MDR by government or RBI rule. Razorpay still charges its 2% platform fee on UPI. PayU's pricing FAQ says that for merchant UPI 'pricing varies by business type and volume', and gives no figure. Ask PayU before relying on UPI-heavy volume. | ||
| Amex and Diners cards | 3% + GST | 3% + GST |
| 3.54% with GST on both. | ||
| EMI | 3% + GST | 3% + GST |
| Razorpay's standard-plan footnote puts credit-card, debit-card and cardless EMI at 3%; its pricing blog lists debit-card EMI at 1%. PayU lists EMI at 3% without splitting it by type. | ||
| Corporate (business) credit cards | 3% + GST | Not disclosed |
| PayU's pricing page does not list corporate cards separately. | ||
| International cards | 3% + GST | 3% + GST |
| Razorpay's international payments page says 'up to 3%' on cards and 1% on international bank transfers. PayU's FAQ says international cards 'fall under the 3% slab'. Both say custom pricing is available at higher volumes: Razorpay above ₹5 lakh a month, PayU by volume, industry and business model. | ||
Domestic Visa and Mastercard cards, net banking and wallets
Razorpay
2% + GST
PayU (India)
2% + GST
The same on both: 2.36% with GST, or ₹23.60 on a ₹1,000 sale. Razorpay's standard plan lists a 2% platform fee; its pricing blog applies it to cards, UPI, net banking and wallets. PayU's pricing page lists 2% 'for Visa, Mastercard, Net Banking, BNPL, Wallets', for domestic transactions only. PayU's page does not mention RuPay. Pay Later (BNPL) is 2% on PayU. Razorpay's pricing blog lists Pay Later at 3% in its method table and at 2% in its fee summary, and its standard-plan footnote does not mention it, so it is not compared as a row.
UPI
Razorpay
2% + GST (platform fee)
PayU (India)
Not disclosed
Both say UPI carries zero MDR by government or RBI rule. Razorpay still charges its 2% platform fee on UPI. PayU's pricing FAQ says that for merchant UPI 'pricing varies by business type and volume', and gives no figure. Ask PayU before relying on UPI-heavy volume.
Amex and Diners cards
Razorpay
3% + GST
PayU (India)
3% + GST
3.54% with GST on both.
EMI
Razorpay
3% + GST
PayU (India)
3% + GST
Razorpay's standard-plan footnote puts credit-card, debit-card and cardless EMI at 3%; its pricing blog lists debit-card EMI at 1%. PayU lists EMI at 3% without splitting it by type.
Corporate (business) credit cards
Razorpay
3% + GST
PayU (India)
Not disclosed
PayU's pricing page does not list corporate cards separately.
International cards
Razorpay
3% + GST
PayU (India)
3% + GST
Razorpay's international payments page says 'up to 3%' on cards and 1% on international bank transfers. PayU's FAQ says international cards 'fall under the 3% slab'. Both say custom pricing is available at higher volumes: Razorpay above ₹5 lakh a month, PayU by volume, industry and business model.
Best For Your Business
Recommendations based on your business type
New online business starting out
Recommended
Razorpay
Razorpay's 0% offer covers domestic payments for the first 90 days or ₹5 lakh, whichever comes first (GST and a ₹199 + tax KYC fee still apply). It also publishes its UPI fee, so you can cost your first months. PayU's pricing page showed no comparable offer.
Business selling to customers abroad
Recommended
PayU (India)
Both charge 3% + GST on international cards, but PayU says it typically settles them in INR within T+2 business days. Razorpay says typically T+7. That is about five fewer working days with your money in transit.
Business selling mostly by UPI
Both. Razorpay publishes its UPI price: a 2% platform fee plus GST, even though UPI itself carries zero MDR. PayU says merchant UPI pricing varies by business type and volume. Get a written quote from PayU and compare it with Razorpay's 2% before choosing.
Subscription business
Both. Razorpay publishes a 0.5% subscriptions add-on (limited-time; 0.9% standard) on top of the platform fee. PayU's subscriptions page links only to its general pricing page, which lists no add-on. Ask PayU in writing whether one applies, then compare.
High-volume merchant negotiating custom rates
Both offer custom pricing: Razorpay above ₹5 lakh a month, PayU by volume, industry and business model. Compare written quotes, and read the exit terms. PayU can hold funds for up to 210 business days after termination; Razorpay for 120 days.
Razorpay: Best for 1 use case
PayU (India): Best for 1 use case
Frequently Asked Questions
Common questions about this comparison
On published standard pricing they cost the same. Both charge 2% on domestic Visa and Mastercard cards, net banking and wallets and 3% on Amex, Diners, EMI and international cards, with 18% GST added to the fee. Razorpay publishes a 2% fee on UPI and a 0% offer for new merchants; PayU does not publish a UPI rate. Both negotiate custom rates at higher volumes.
Domestic payments settle on T+2 on both. International payments typically settle in T+7 business days on Razorpay and T+2 business days on PayU, by each company's own figures. Both offer faster settlement on request: Razorpay's Instant Settlements, 24x7, once its support team activates it, and PayU's Priority Settlements, from T+15 minutes to T+1, 24x7, after approval. Neither publishes the fee for faster settlement.
PayU's merchant terms require 30 days' written notice from either party, except for immediate termination on grounds such as fraud or breach of law. Razorpay's terms set no notice period and let Razorpay close an account at any time. Both can keep money back after you leave to cover chargebacks. Razorpay can withhold a sum based on your chargeback ratio for 120 days. PayU can retain an amount it decides for up to 210 business days, longer where funds are on hold for a breach.
Yes. The RBI's list of authorised payment system operators shows Razorpay Payments Private Limited as an online payment aggregator from 19 December 2023 and PayU Payments Private Limited from 13 May 2025. It lists both for physical and cross-border payment aggregation as well.
No. It covers PayU's Indian business, PayU Payments Private Limited, and its payu.in pricing and merchant terms. PayU's businesses in other countries have different pricing and terms.
Neither charges a setup fee or an annual fee on its standard plan. Razorpay's pricing blog lists a one-time ₹199 + tax KYC processing fee as a condition of its new-merchant offer.
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