UPI payment gateway charges in India can be 0% MDR and still include a separate technology or platform fee. For a merchant, the useful comparison is the total cost, when the money reaches your bank account, and whether you need a gateway to collect the payment at all. For merchants whose priority is direct UPI collection with automatic order verification, PaymentSetu Pro offers the clearest flat-fee model.
Quick comparison: what merchants pay
This snapshot uses the providers’ published pricing and settlement pages checked on 23 October 2026. Rates can change, and your approved commercial terms may differ from a public standard rate.
| Option | Published UPI charge | Setup or recurring cost | Typical settlement route | Best fit |
|---|---|---|---|---|
| PaymentSetu Pro | 0% commission | ₹999 / 30 days; 1,000 credits | Customer pays into your own UPI merchant account | Stores and service businesses needing verified UPI orders |
| Razorpay Payment Gateway | 2% platform fee on standard UPI; 18% GST applies to the platform fee | No setup fee or AMC on the standard pricing page | Standard domestic settlement is generally T+2 working days | A checkout with several payment modes |
| Cashfree Payment Gateway | 1.95% standard rate for UPI and other domestic modes | No setup fee on the published pricing page | Standard settlement is T+2; faster options may be available | Businesses wanting a full gateway checkout |
| Paytm All-in-One Payment Gateway | 0% published UPI MDR | Free account setup and no AMC shown on the pricing page | Default T+2; T+1 and same-day options are available at extra cost | Merchants comparing gateway-based UPI collection |
The key difference is the money flow. A gateway collects through its payment infrastructure and then settles to your bank account after its applicable deductions and cycle. PaymentSetu is a payment verification service: the customer pays your own Paytm Business or PhonePe Business merchant account, PaymentSetu matches the UTR and amount to the order, and sends the webhook. It does not hold the payment.
Short answer: what UPI collection costs
There are three different charges that are often mixed together:
- MDR: the merchant discount rate associated with a payment instrument or payment flow.
- Gateway or platform fee: the technology, checkout, reporting and integration fee a provider may charge even where UPI MDR is zero.
- Verification or software plan: a fixed subscription for matching a payment to an order and notifying your store.
The Reserve Bank of India’s payment-system cost report records that MDR was not to be collected for UPI and RuPay debit-card transactions from 1 January 2020. That does not stop a payment gateway from publishing a separate platform fee for its software and services. Razorpay’s current pricing page is an example: it describes zero MDR for standard bank-to-bank UPI but a 2% platform fee.
For a business that only needs customers to pay by UPI and needs the order marked paid automatically, a direct-to-your-own-account flow can be simpler to price. Your cost is then the fixed PaymentSetu plan rather than a percentage of every successful payment.
PaymentSetu: flat-fee UPI verification
PaymentSetu is for merchants who already have a business UPI account and want automated order matching around it. The customer scans a dynamic QR and pays directly to your connected merchant account. PaymentSetu checks the payment details against the order, updates the status and sends a webhook to your store or application.
That makes the pricing model easy to understand: 0% commission on the payment amount and a plan charged per 30 days. The plans are based on successful payments verified, not on the rupee value of each payment.
| Plan | Price | Credits | Suitable starting point |
|---|---|---|---|
| Starter | ₹399 / 30 days | 100 | Small shops, freelancers and new online stores |
| Pro | ₹999 / 30 days | 1,000 | Growing WooCommerce, WHMCS and service businesses |
| Business | ₹1,499 / 30 days | 100,000 | High-volume, SaaS and multi-branch businesses |
One credit represents one successful payment verified. Every plan includes dynamic QR, webhooks, REST API access, a unified dashboard, real-time notifications and email support. Pro also includes the WooCommerce and WHMCS plugins plus priority support.
The important qualification is that this is not a general-purpose payment gateway. It does not replace card, net-banking or wallet acceptance. It is a direct UPI collection and verification layer for merchants using their own connected Paytm Business or PhonePe Business account.
If you run WooCommerce, see the PaymentSetu WooCommerce plugin. It lets the webhook mark an order paid after verification without custom API work.
Razorpay: 2% platform fee on standard UPI
Razorpay’s published standard pricing lists a 2% platform fee for payment gateway transactions, with 18% GST applicable to that fee. Its pricing explanation distinguishes this platform fee from the government’s zero-MDR treatment for standard bank-to-bank UPI.
There is no setup fee or annual maintenance charge on the standard pricing page. The standard domestic settlement cycle is generally described as T+2 working days, with faster settlement products subject to their own eligibility and terms.
At ₹1,00,000 in successful UPI payments, the base platform fee at 2% is ₹2,000. With 18% GST on that fee, the platform-related total is ₹2,360. The same calculation is ₹11,800 on ₹5,00,000 and ₹23,600 on ₹10,00,000.
This can be a practical route when you want one gateway integration for UPI plus cards and other payment methods. If your requirement is specifically direct UPI into your own merchant account with order verification, compare the percentage fee and settlement flow with a fixed verification plan.
Cashfree: standard rate plus settlement terms
Cashfree’s published UPI payment gateway page lists a standard rate of 1.95% MDR for UPI and other domestic payment modes, with no setup, maintenance or hidden charges stated on that page. Cashfree also publishes promotional or customised pricing from time to time, so check the applicable offer, volume cap and expiry before using a promotional 0% figure in your forecast.
The standard settlement cycle is T+2 days on working days, subject to account and business terms. Cashfree also describes an instant settlement option, which is a separate feature from the standard cycle.
At the published 1.95% rate, the base charge is ₹1,950 on ₹1,00,000, ₹9,750 on ₹5,00,000 and ₹19,500 on ₹10,00,000, before any applicable tax shown on your invoice. There is no percentage charge in the PaymentSetu model; the relevant question becomes whether your number of successful payments fits the credits in your selected plan.
Paytm: published 0% UPI MDR is not the same model
Paytm’s current business pricing page publishes 0.00% for UPI in its standard plan table. It also shows free account setup and no annual maintenance charge. Its support documentation states that the default settlement cycle is T+2, while T+1 and same-day settlement are available at extra cost.
That makes Paytm’s published UPI row different from a provider that adds a visible percentage platform fee. It is still a payment gateway arrangement: the gateway and its settlement terms remain part of your payment stack.
PaymentSetu can sit around your own Paytm Business merchant account for verification. The customer’s UPI payment goes to that merchant account, while the service connects the payment to the correct order and notifies your application. The two products therefore solve different jobs and should not be described as interchangeable gateways.
Costs people miss when comparing UPI fees
A 0% headline can hide a different fee
Always ask whether 0% refers to MDR, a temporary platform-fee offer, or the complete cost of the payment flow. Read the fee basis, taxes, payment-method exclusions, volume cap and offer end date.
Settlement timing affects working capital
Compare when the money is credited to your bank account, not only when the checkout says “success”. Standard gateway settlement may be T+2 working days, and faster settlement can carry separate eligibility or pricing. With direct UPI payment into your own merchant account, the payment is already sent to your account; the verification service handles order confirmation separately.
Refunds are a process, not just a percentage
Ask how refunds are initiated, recorded and reconciled. For direct UPI orders, keep the original order ID, UTR, amount and refund record together in your accounting workflow. PaymentSetu’s role is to verify and notify the payment; your business remains responsible for your customer-facing refund policy.
Payment count matters for a flat plan
₹10 lakh of monthly sales could mean 50 high-value orders or 2,000 small orders. A flat plan should be selected using successful payment count as well as sales value. Pro includes 1,000 verified payments; Business includes 100,000.
Worked cost examples at ₹1 lakh, ₹5 lakh and ₹10 lakh
The table below shows the arithmetic for the published standard rates and the PaymentSetu Pro plan. Gateway figures are platform or standard-rate calculations; taxes, negotiated rates, payment-mode mix and optional settlement products can change the final invoice.
| Monthly successful UPI value | Razorpay at 2% + 18% GST on fee | Cashfree at 1.95% base rate | PaymentSetu Pro | Pro difference vs Razorpay* |
|---|---|---|---|---|
| ₹1,00,000 | ₹2,360 | ₹1,950 | ₹999 | ₹1,361 |
| ₹5,00,000 | ₹11,800 | ₹9,750 | ₹999 | ₹10,801 |
| ₹10,00,000 | ₹23,600 | ₹19,500 | ₹999 | ₹22,601 |
\*The difference compares the listed Pro plan with the Razorpay calculation only. It assumes the payment count stays within 1,000 successful verifications and does not include other gateway features or taxes outside the stated Razorpay platform-fee GST.
At ₹1,00,000 of monthly value, the Pro plan’s fixed price is below a 2% platform fee once the plan’s credit capacity fits your order count. At higher value, the percentage model grows with every payment while the Pro subscription remains ₹999 for the 30-day period. If you need more than 1,000 successful verifications, compare the Business plan’s ₹1,499 price and 100,000 credits.
How to choose the right UPI setup
Choose a gateway when your checkout must accept several payment methods through one integration, including cards and net banking, and you are comfortable comparing gateway settlement terms.
Choose direct UPI verification when customers can pay into your own Paytm Business or PhonePe Business account and your priority is zero commission, direct settlement and automatic order matching.
Use this checklist before signing up:
- Estimate successful UPI payments, not only monthly sales value.
- Separate MDR, platform fees, GST and optional settlement charges.
- Confirm where the customer’s money lands and who controls the merchant account.
- Check whether your platform needs a ready plugin, API or HMAC-signed webhook.
- Confirm how payment status, UTR and refunds will be reconciled.
For a growing WooCommerce or WHMCS business that wants direct UPI collection, compare the PaymentSetu plans and choose the credit level that matches your successful payment count.
FAQ
What are the UPI payment gateway charges in India?
There is no single rate. As checked on 23 October 2026, published examples include a 2% platform fee from Razorpay for standard UPI, a 1.95% standard rate from Cashfree, and 0% published UPI MDR from Paytm. A gateway’s platform fee, taxes and settlement options can still affect the total cost.
Is UPI free for merchants in India?
UPI MDR may be zero, but using a payment gateway can still involve a platform or technology fee. A direct UPI verification service such as PaymentSetu uses a fixed plan and charges 0% commission on the payment value.
Is PaymentSetu a payment gateway?
No. PaymentSetu is a payment verification service. The customer pays directly into your own connected Paytm Business or PhonePe Business merchant account, and PaymentSetu matches the UTR and amount to the order before sending a webhook.
How much does PaymentSetu Pro cost?
PaymentSetu Pro costs ₹999 per 30 days and includes 1,000 credits. One credit represents one successful payment verified, so choose the plan using your expected payment count rather than only your monthly rupee value.
Can I use PaymentSetu with WooCommerce?
Yes. The free WooCommerce plugin works with any PaymentSetu plan, starting with the ₹399 / 30 days Starter plan. The webhook marks the order paid after the UPI payment is verified; see the WooCommerce plugin details.
