In view of the fact that the world is an internet domain, being tolerant of payments isn't an added-value feature—It's the norm. Consumers of today love easy, pay-later options like EMI (Equated Monthly Installments) and Pay Later options to tactfully optimize their spending. For merchants, incorporating such features can lead to serious down-slopes when it comes to conversion and satisfaction rates.
Choosing the best payment gateway in India that has both EMI and Pay Later facilities can simplify online payments and be more attractive to your customers. In this blog, we will delve into why these payment options are important, what are the best gateways that provide them, and how these can turn your online shop in India around.
Why EMI and Pay Later Options Matter for Online Sellers
Consumers of today, particularly millennials and Gen Z, seek cost convenience and flexibility. This is why EMI and Pay Later solutions are important:
Increase in Conversion Rate: The customer will buy if payment can be made in instalments.
AOV uplift: The customer will pay extra if payment channels are convenient.
Improved Customer Retention: Easy financing generates long-term relationships.
Competitive advantage: Differ by providing customer-centric payment options.
Increased Customer Base: Acquire price-sensitive customers who otherwise would not have purchased.
Therefore, extending these payment facilities through India's top payment gateway is likely to make business expand faster and reach a bigger customer base.
Best Payment Gateway in India with EMI and Pay Later Options
Following is a detailed review of India's top payment gateways that provide flexible payments:
- Razorpay
Why it's a market leader
Razorpay is one of the fastest-growing Indian gateways and offers end-to-end EMI and Pay Later solutions.
Key Features:
EMI on leading bank credit cards
Debit card EMI (for select banks)
Buy Now Pay Later features via ZestMoney, Lazypay, and OlaMoney Postpaid
Improved API integration for web and app platforms
Transparency in fees and settlement timelines
Best for:
E-commerce websites, subscription websites, education technology, and online services.
- PayU India
Why it's a top player:
PayU is commonly accepted to be India's best EMI and financing payment gateway.
Salient Features:
Credit card EMI for all major banks
Debit card EMI for selected customers
Pay Later facilities with LazyPay, Simpl, and ePayLater
Fast checkout feature to reduce cart abandonment
Best for:
Large e-commerce merchants, online classes, consumer electronic stores.
- Cashfree Payments
Why it's a best pick:
Cashfree is extremely adaptable and cost-effective, and it is best suited for SMEs and startups.
Key Features:
EMI options on debit and credit cards
Buy Now Pay Later partners such as ZestMoney and Walnut369
Easy integration for Shopify, WooCommerce, and custom websites
Faster-than-light payments and transparent fees
Best for:
SMEs, mobile app businesses, subscription-based services.
- CCAvenue
Why it's a hit:
CCAvenue is one of India's most veteran and reliable payment gateways, offering high-strength EMI support.
Key Features:
EMI on multiple banks (ICICI, HDFC, SBI, Axis, etc.)
Credit card and debit card EMI option
Pay Later integrations with Simpl and ePayLater
Multilingual checkout pages to appeal to different audience
Best suited for:
Travel websites, online stores, and big online retailers.
- Instamojo
Why it's a favorite:
Though stereotypically linked with micro-businesses, Instamojo added Pay Later options to enhance user experience.
Key Features:
Buy Now Pay Later using Simpl and LazyPay
Simple, no-coding payment link generation
Low transaction fees for small sellers
Integrated online store creation features
Ideal for:
Freelancers, course creators, solo product sellers.
Key Features to Watch Out For
When choosing the best payment gateway in India with EMI and Pay Later services, look out for these features:
Feature Why It Matters
Broad Bank Coverage Has more banks = more EMI options for customers
Instant EMI Eligibility Check Reduces checkout friction
Transparent Charges Ensures no surprise EMI processing fees
Quick Settlements
Safeguards cash flow regardless of late customer payments
Simple Integration
Saves time and development costs
Reliable Support
Fast resolution of technical and customer support grievances
An efficient gateway option will directly contribute to operational effectiveness and customer satisfaction.
How EMI and Pay Later Payment Facilities Drive Business Growth
We shall discuss the real benefits:
20-30% Conversion Rate Increase: It has been quoted that providing EMI can enhance online buying volumes instantaneously.
Increased Average Order Value: Shoppers will add more products to their cart if they don't have to pay the entire price upfront.
Increased Audience Reach: Pay Later and EMI services encourage even budget-conscious shoppers to purchase high-value items.
Improved Brand Perception: Providing streamlined, flexible payment avenues makes your company appear progressive and customer-friendly.
In short, with flexible payments, you're eliminating one of the largest online consumer behavior pain points.
Quick Comparison: Top Gateways Providing EMI and Pay Later
Gateway EPI Option Pay Later Option Set up Fee Transaction Fee
Razorpay Credit & Debit Card EMI ZestMoney, OlaMoney ₹0 ⋅ 2%–2.5%
PayU India Credit & Debit Card EMI LazyPay, Simpl ₹0 ⋅ 2%–2.5%
Cashfree Credit & Debit Card EMI ZestMoney, Walnut369 ₹0 ⋅ 1.75%–2%
CCAvenue Credit & Debit Card EMI Simpl, ePayLater ₹0 ⋅ 2%–2.5%
Instamojo No Credit EMI (Pay Later only)LazyPay, Simpl ₹0 ⋅ 2%–3%
Conclusion
With the competitive online shopping scenario today, easy payment modes such as EMI and Pay Later are not only a choice but a necessity. Having a strong online payment gateway with such features is one step that can quite efficiently enhance customer satisfaction, conversion rates, and thereby your business at a quicker rate.
Regardless of whether you have a small online shop, a big e-commerce website, or a subscription-based business, payment gateways like Razorpay, PayU, Cashfree, CCAvenue, and Instamojo are great options that offer efficient and feature-rich solutions for your needs.
Selecting the most appropriate payment gateway in India especially for EMI and Pay Later services ensures you not only more customers but also retaining them for the long term.
Ready to grow your business with easy, stress-free payments? It's time to get started—add the ideal payment gateway today!