Razorpay vs PayU: Which Payment Gateway is Best for Your Indian E-commerce Business in 2026?
Core Differences: Transaction Fees (TDR), Setup, and Annual Maintenance Costs
The first question every business asks revolves around cost. When evaluating razorpay vs payu for indian ecommerce, the Transaction Discount Rate (TDR), setup fees, and annual maintenance charges (AMC) are the foundational metrics. For years, these two giants have been in a pricing tug-of-war, which, fortunately, benefits merchants. As of 2026, both platforms have largely eliminated setup fees and AMCs for their standard, no-frills plans, targeting startups and SMEs to foster ecosystem growth.
The core battleground is the TDR. While both prominently advertise a standard rate, typically around 2% + GST for domestic transactions, the devil is in the details. This rate applies to a majority of payment modes like Indian credit/debit cards, Net Banking, and UPI. However, premium services and specific card types can attract different rates.
A key insight for businesses is to look beyond the advertised TDR. Analyze your actual or expected payment mix. If you anticipate a high volume of transactions from American Express or Diners Club cards, or require multi-currency processing, the "standard" TDR becomes less relevant. These often carry a higher rate, typically closer to 3% + GST.
Here’s a simplified breakdown for standard plans in 2026:
| Feature | Razorpay Standard Plan | PayU Standard Plan |
|---|---|---|
| Setup Fee | Zero | Zero |
| Annual Maintenance Cost (AMC) | Zero | Zero |
| Domestic TDR (Cards, UPI, Net Banking) | 2% + GST |