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Payment Guide

The Ultimate Guide to Accepting Payments for Digital Products in India

Jan 18, 20269 min readSellary Team
How to Accept Payments for Digital Products in India

"Stop losing customers at checkout. Master the Indian payment stack."

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Setting up payments is the "moment of truth" for your digital business. Get it wrong, and you'll lose 40% of customers at the final step. Get it right, and money flows into your account while you sleep. This guide covers everything you need to know about the complex Indian payment ecosystem.

The Indian Payment Stack: A Unique Beast

Western advice doesn't work here. While the US runs on credit cards, India runs on UPI. If you don't optimize for UPI, you are ignoring 80% of your market.

UPI (Unified Payments Interface)

80%+market share
Why it works
Instant settlement
Zero/low fees
Highest success rate
QR Code support

Credit & Debit Cards

15%market share
Why it works
Higher transaction limits
Works internationally
EMI options
Recurring payments

Netbanking & Wallets

5%market share
Why it works
Good for large corporate transactions
No daily limits
Trusted by older demographic

Choosing Your Payment Gateway

You can't just put your personal UPI QR code on a website (it's hard to track and doesn't automate delivery). You need a Payment Gateway (PG). Here are the top contenders:

R

Razorpay (Recommended)

Best Overall

The gold standard. Excellent success rates, instant activation for individuals, and supports international payments.

Instant Settlement 100+ Currencies
P

PhonePe Gateway

Zero Fees Offer

Newer entrant offering zero transaction fees for the first year. Great infrastructure but stricter onboarding.

How to Integrate: The "Technical" vs "Smart" Way

The Hard Way (Direct PG)

  • 1.
    Register business (GST/Sole Prop)
  • 2.
    Build website (React/WordPress)
  • 3.
    Integrate API/SDK code
  • 4.
    Handle webhooks & server security
  • 5.
    Weeks of effort
Recommended

The Smart Way (Sellary)

  • Sign up with Gmail
  • Connect Bank Account (Savings OK)
  • Payments Pre-integrated
  • Automatic Product Delivery
  • 5 Minutes setup

Do I need GST?

Not initially. You only need GST registration if your turnover crosses ₹20 Lakhs/year (₹10L for some states). You can start selling under your personal PAN card.

Is it safe?

Absolutely. Modern gateways use 128-bit encryption. Sellary uses secure, PCI-DSS compliant infrastructure. Never share your OTP or banking passwords.

Checkout Optimization Checklist

  1. Reduce Friction: Don't ask for "Address" or "Phone Number" unless absolutely necessary. Just Email is enough for digital products.
  2. Trust Signals: Display "Secured by Razorpay" or similar badges.
  3. Failed Payment Recovery: If a payment fails, send an automated email with a retry link (Sellary does this automatically).
  4. Test on Mobile: 90% of your customers will pay via mobile. Ensure the checkout button is thumb-friendly.

Common Questions

Frequently Asked Questions

Do I need GST to accept payments for digital products?

GST registration is required only if your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states). Below this threshold, you can sell without GST.

Which payment gateway is best for digital products in India?

Razorpay is the current industry leader due to high success rates, quick settlements, and international support. Cashfree and PhonePe Gateway are also reliable alternatives.

How long does it take to receive payments?

Settlement times vary: Razorpay offers T+2 days settlement (standard) or Instant Settlement (for a small fee). Sellary handles this automatically for creators.

What documents do I need to accept payments?

Typically: PAN card, bank account details (cancelled cheque), and address proof (Aadhar/Passport). Business accounts require GST registration and incorporation documents.

Can I accept international payments (USD/EUR)?

Yes, but you need to enable "International Payments" on your gateway (Razorpay/PayPal). Payments are settled in INR after currency conversion fees (typically 3-4%).

Sellary

Skip the technical headache

We've done the hard work for you. Sellary comes with a pre-configured, high-conversion checkout optimized for Indian buyers.

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