Razorpay vs. Instamojo vs. PayU: Payment Gateway for Indian Freelancers in 2025?

Looking for the best payment gateway for freelancing in India? Here’s a quick breakdown:

• Razorpay: Best for freelancers focused on Indian clients. Offers low fees (2% domestic, 3% international), fast onboarding (1–3 days), and robust tools like invoicing, instant settlements, and subscription management. However, customer support is often slow.
• Instamojo: Ideal for beginners. Simple setup, free invoicing tools, and domestic payment focus (fees: 2% + ₹3 per transaction). International payments are limited, and payouts can take longer (T+3 days). Customer support has mixed reviews.
• PayU: Great for handling international clients. Supports 150+ payment modes, strong fraud prevention, and fast payouts (Priority Settlements in 15 minutes). Fees are similar to Razorpay, but onboarding is slow, and customer service is a common pain point.

Quick Comparison:

Feature	Razorpay	Instamojo	PayU
Domestic Fees	2% + 18% GST	2% + ₹3 + 18% GST	2% + 18% GST
International Fees	3% + 18% GST	On request	3% + 18% GST
Settlement Time	T+2 days (Instant available)	T+3 days (faster for a fee)	T+5 days (15-min option)
Setup Time	1–3 days	1–2 days	2–5 days
Special Features	Subscription tools, 100+ currencies	Free invoicing, beginner-friendly	150+ payment modes, fraud prevention
Customer Support	Slow, generic responses	Mixed reviews	Unresponsive, delayed help

For Indian freelancers, Razorpay offers the smoothest experience overall. If you’re just starting out, Instamojo is easy to use but has limited features. For global clients or quick payouts, PayU is worth considering despite its onboarding challenges.

Account Setup and Required Documents

How to Create Your Account

Setting up an account varies depending on the payment gateway you choose. Razorpay keeps it simple: you’ll need to provide your contact information, platform details, PAN card details, and business information. Plus, Razorpay allows you to create multiple accounts using the same mobile number and email ID, which can be handy.

PayU, on the other hand, follows a more detailed process with five steps: submitting organisational details, accepting service agreements, uploading documents, paying an activation fee, and completing account verification. Your account remains inactive until all steps are done. They also offer separate accounts for production (live transactions) and sandbox (testing), so you’ll need to set up both if required.

Instamojo offers a quicker registration process, though the documentation requirements are less detailed in comparison.

Fees to Note: Razorpay charges an onboarding fee of ₹199 for individuals, and PayU also imposes a registration fee. Razorpay provides assisted onboarding for an additional cost.

Once your account is created, the next step is completing the mandatory KYC verification.

KYC and Document Verification

To comply with Indian financial regulations and prevent fraud, all three platforms require KYC (Know Your Customer) verification. The documents you’ll need depend on your business structure.

For Individual Freelancers:

• PAN card (mandatory)
• Identity proof such as Aadhaar card, passport, or voter ID
• Bank account details (e.g., a cancelled cheque or passbook)
• Proof of business activity (optional but useful, like Udyam registration, invoices, or website links)

For Registered Businesses: The requirements are more detailed and often include business registration certificates, company PAN cards, and authorised signatory documents.

Here’s a comparison of KYC requirements and timelines for the three platforms:

Gateway	KYC Required Before Go-Live?	Onboarding Time	e-KYC Support
Razorpay	Yes	1–3 days	Yes
PayU	Yes	2–5 days	Yes
Instamojo	Yes (after ₹10,000)	1–2 days	Yes

Instamojo allows you to start accepting payments immediately, but KYC must be completed once transactions exceed ₹10,000. Their documentation requirements are simpler, generally needing only your PAN card and proof of bank account (e.g., a recent bank statement, passbook, or chequebook showing the account holder’s details).

When uploading documents, make sure they are clear, unblurred, and in an accepted format (PDF, JPG, or PNG). Also, ensure that the address on your documents matches your business registration details to avoid delays.

Business Type Restrictions

Each platform has its own rules and preferences regarding the types of businesses they support.

Razorpay is highly freelancer-friendly, catering to businesses of all sizes and placing minimal restrictions on service types.

Instamojo focuses on small businesses and freelancers but comes with a potential drawback. As Indra Chatterjee pointed out:

"Instamojo: They are more interested in your customers than serving you. Don’t get surprised if your customers start getting solicitation emails from them."

This suggests that Instamojo may use customer data for its own marketing, which could be a concern if maintaining client trust is important to you.

PayU, however, has been reported as challenging for freelancers. Indra Chatterjee shared:

"PayU: The worst of all. They will literally harass you during onboarding. Their onboarding team wants to play god, and acts like they know everything about every business. There is no way you can contact any real human in the company and explain few things… We all tried hard to get onboarded with them for one long month and gave up."

In contrast, Chatterjee had praise for Razorpay:

"Razorpay: The best in the market. Literally 5 days onboarding. Excellent and slick technology. Superb dashboard. Lowest rates. You name it, they got it."

For freelancers offering services like content writing, graphic design, consulting, or digital marketing, Razorpay seems to provide the smoothest onboarding experience. Instamojo can work well for straightforward service businesses, as long as you’re comfortable with their approach to customer data. PayU might be better suited for businesses with standard models and the patience to handle a more demanding approval process.

How Freelancers Can Accept Payments Online | Razorpay for Freelancers and Unregistered Businesses

Transaction Fees and Payment Timelines

Getting a clear picture of payment fees and timelines is essential for managing your freelance finances. Each payment gateway has its own rules for fees and fund settlements, which can influence your cash flow in a big way.

Domestic vs International Payment Costs

Here’s how the fees stack up for domestic and international payments across popular gateways:

• Razorpay: For domestic transactions, Razorpay charges 2% plus 18% GST on payments made through cards, net banking, UPI, and wallets. For international payments, the fee jumps to 3% plus 18% GST, with an additional 1–2% foreign exchange markup for currency conversion.
• Instamojo: Domestic payments come with a 2% fee plus ₹3 per transaction, with 18% GST applied to the total. International payment processing is available on request and may include an extra 1% fee on top of the base rate.
• PayU: Domestic fees are 2% plus 18% GST for transactions made via Visa, Mastercard, net banking, BNPL, and wallets. For international payments, including options like Diners, American Express, and EMI, the fee is 3% plus 18% GST.

When You Get Paid

Settlement timelines vary and can affect how quickly you receive your money:

• Razorpay: Domestic payments are settled in T+2 working days. For faster access, Razorpay offers Instant Settlements for an additional fee. Their Smart Settlement feature lets you transfer amounts above ₹5 lakh in one go via RTGS.
• Instamojo: Settles domestic payments in T+3 working days. If you need faster options, they offer:
  • Same-Day payouts for 0.50% plus GST
  • Next-Day payouts for 0.25% plus GST
  • Instant payouts for 1% plus GST, even on bank holidays
• PayU: Payments follow a two-step process: funds are transferred from the customer’s bank to PayU in T+2 days, and then PayU settles the amount to your account in another T+3 days, making it a T+5 day cycle. Priority Settlements are available for an extra fee, allowing payments to process in as little as 15 minutes.

Factors like bank holidays, KYC status, and risk assessments can cause delays, so it’s a good idea to keep an eye on your dashboard and email for updates.

Cost Examples with Real Numbers

Let’s break down the fees with some examples:

For a ₹10,000 domestic payment:

• Instamojo: Charges 2% of ₹10,000 (₹200) plus ₹3, totalling ₹203. Add 18% GST (₹36.54), and the final fee is ₹239.54. You’d receive approximately ₹9,760.46.
• Razorpay: Charges 2% (₹200) plus 18% GST (₹36), totalling ₹236. You’d get around ₹9,764.
• PayU: Follows the same structure as Razorpay, with a total fee of ₹236 and a payout of roughly ₹9,764.

For a $500 international payment (around ₹41,750 at ₹83.5 per dollar):

• Razorpay: Charges 3% (₹1,252.50) plus 18% GST (₹225.45), totalling ₹1,477.95. Your payout would be about ₹40,272.05, excluding the 1–2% FX markup.
• PayU: Applies the same 3% plus 18% GST, resulting in fees of ₹1,477.95.
• Instamojo: International fees are on request and may vary slightly depending on additional charges.

Payment Gateway	₹10,000 Domestic Payment	$500 International Payment (approx. ₹41,750)
Razorpay	₹236 total fees	₹1,477.95 total fees
Instamojo	₹239.54 total fees	Fees on request
PayU	₹236 total fees	₹1,477.95 total fees

For freelancers managing many small payments, Instamojo’s ₹3 fixed fee per transaction can quickly add up compared to percentage-only fee models.

Payment Options and Technical Integration

When it comes to freelance payments, the choice of payment gateway and the ease of integration can make a big difference. Each platform offers a variety of payment methods and comes with its own level of technical complexity for setup.

Available Payment Methods

All three gateways – PayU, Razorpay, and Instamojo – cater to Indian payment preferences, but their offerings vary in scope. PayU stands out with over 150 payment modes, making it the go-to option for freelancers aiming to accommodate diverse client preferences. Razorpay and Instamojo aren’t far behind, each supporting over 100 payment methods, which cover most scenarios you’re likely to encounter.

For domestic payments, all three platforms support popular options like UPI, credit and debit cards (Visa, Mastercard, RuPay), net banking with major Indian banks, and digital wallets such as Paytm, PhonePe, Google Pay, and Amazon Pay.

Advanced payment features add another layer of distinction. Both Razorpay and PayU offer EMI (Equated Monthly Instalments) and BNPL (Buy Now, Pay Later) options, which can be handy for larger projects where clients prefer split payments. Instamojo, however, does not support BNPL, which might be a drawback for freelancers handling high-value contracts.

When it comes to international payments, Razorpay supports transactions in 100+ currencies, while PayU accepts international cards across 150+ countries via Visa, Mastercard, and Amex. Instamojo, though it accepts international cards, processes all payments in Indian Rupees, which could be limiting for some freelancers. Once you’ve decided which payment methods suit your needs, the next step is ensuring smooth integration.

API Setup and Website Integration

The ease of integrating a payment gateway depends on your technical skills and website setup. A seamless integration process not only ensures secure transactions but also speeds up invoicing.

Razorpay is known for its developer-friendly integration. Kailash Nadh, Head of Technology at Zerodha, shared:

"Integrating Razorpay was a breeze and we must have spent about 30 minutes doing it. Unquestionably the only Indian payment gateway truly designed and built for developers".

Razorpay offers various integration options, including web, mobile apps, e-commerce plugins, and robust APIs. The platform provides detailed documentation, a Node.js sample app, and GitHub repository access to get developers up and running quickly. It also boasts 99.9% uptime with seamless React and Express integration, ensuring reliability.

Instamojo takes a simpler approach, making it easy for developers to integrate and go live within hours using its payment APIs. It supports multiple programming languages, such as Python, Ruby, PHP, Java, C#, and JavaScript, and works well with platforms like WordPress.

PayU provides APIs and lightweight SDKs, along with plugins compatible with popular e-commerce platforms.

For freelancers without technical expertise, all three platforms offer hosted checkout options. These redirect clients to secure payment pages, eliminating the need to handle sensitive card data directly – perfect for those without developer support.

Pros and Cons Comparison

Here’s a quick comparison of key features to help you decide:

Feature	Razorpay	Instamojo	PayU
Payment Methods	100+ methods; strong international support	100+ methods; limited international processing	150+ methods; broad international coverage
Integration Ease	Developer-friendly APIs; setup in ~30 mins	Simple APIs; live in a few hours	APIs and lightweight SDKs
Documentation	Comprehensive with GitHub samples	Detailed guides	Functional documentation
Customization	High, with direct API integration	Moderate, with flexible checkout	Standard, plugin-based approach
Technical Support	Strong developer community	Business-focused support	Standard technical assistance
Platform Compatibility	Extensive (React, Node.js, mobile apps)	Good (WordPress, major platforms)	Standard (e-commerce plugins)

While all platforms allow limited checkout customisation, this might affect your branding. Additionally, some payment methods may require prior approval, which could delay their availability.

Razorpay users have reported a 35% increase in sales when using integrated offers, showing its potential for freelancers willing to utilise its advanced features. However, this level of optimisation often requires more technical know-how. For those who value simplicity, Instamojo’s straightforward setup is a better fit. If you need maximum payment coverage, PayU’s extensive options are hard to beat. Meanwhile, tech-savvy freelancers looking for customisation will find Razorpay’s API ecosystem ideal.

sbb-itb-98ad9c7

Invoicing Tools and Dashboard Features

For freelancers juggling multiple clients, having reliable invoicing tools and user-friendly dashboards can save a lot of time and effort. Each platform – Razorpay, Instamojo, and PayU – offers a mix of invoicing, recurring payment options, and business tracking features that cater to different needs.

Invoice Creation and Customisation

All three platforms – Razorpay, Instamojo, and PayU – include online invoicing solutions, enabling freelancers to create and send digital invoices. However, the ease of use and customisation options vary across platforms.

Instamojo provides a free Invoice Generator tool that allows users to create professional invoices with payment links embedded. This feature simplifies the payment process, as clients can pay directly from the invoice.

Razorpay focuses on minimising administrative hassles and errors while offering advanced customisation options. Freelancers can personalise invoices by adding their logo and brand colours, which is especially useful for maintaining a professional image.

PayU, while offering standard invoicing capabilities, appears to have fewer customisation options compared to the other two platforms.

All three platforms include key details in their invoices, such as business information, customer details, invoice numbers, service descriptions, pricing, and tax rates. The seamless integration of invoicing with payment processing eliminates the need for separate tools, making the workflow much smoother.

Next, let’s explore how each platform handles recurring payments to further simplify billing for freelancers.

Subscription and Repeat Payment Setup

Beyond invoicing, automated subscription tools are a game-changer for managing recurring revenue. Each platform offers distinct features for subscription management.

Razorpay Subscriptions stands out with its global reach, supporting nearly 100 currencies. It offers features like UPI AutoPay, embeddable subscription buttons, and a dedicated dashboard for subscription management. Flexible payment schedules, quantity-based plans, and usage-based models are also supported. Pricing for Razorpay includes a 2% fee per domestic transaction and 3% for international payments, with an additional 0.5% charge for subscription-based payments (limited-time offer).

"The agile billing system makes handling subscriptions a breeze with a powerful hosted solution that handles edge cases like card change, retries, email alerts etc." – Razorpay

PayU Subscriptions allows freelancers to create tailored subscription plans with options for free trials, add-on charges, and late fee applications. Payment cycles can be set to monthly, quarterly, or annually. Pricing includes a 2% fee plus 18% GST for domestic transactions and 3% plus 18% GST for premium cards or international payments.

Instamojo, while offering recurring payment options, has more limited features compared to Razorpay and PayU.

Automated recurring billing takes care of repetitive tasks like invoice generation, payment collection, and receipt issuance, saving freelancers valuable time.

Dashboard Layout and Analytics

A well-designed dashboard provides freelancers with critical insights into their business, helping them make smarter decisions about pricing and client management.

Instamojo’s dashboard delivers real-time analytics and customer insights, including revenue tracking and customer journey analysis. It also supports features like automated workflows to recover abandoned carts and tools to set up discounts that drive sales.

PayU’s dashboard offers an overview of payments, settlements, and refunds, along with real-time analytics. Freelancers can monitor transactions and generate detailed reports. PayU’s widespread adoption – supporting over 500,000 businesses and handling payments for 60% of India’s e-commerce merchants – adds to its credibility.

Razorpay offers a detailed dashboard for tracking transactions, though the specific features available depend on the subscription plan chosen.

These dashboards enable freelancers to refine their pricing strategies and manage clients more effectively. The insights provided by these tools play a crucial role in evaluating each platform’s overall performance.

For freelancers just starting out, Instamojo’s user-friendly design and free invoicing tools are appealing. Those working with international clients or requiring sophisticated subscription models might prefer Razorpay’s advanced features. Meanwhile, PayU’s strong track record and broad payment method support make it a solid choice for freelancers who prioritise transaction reliability.

Support Quality and User Feedback

While technical features and seamless integration are important, freelancers often find that the real test of a payment gateway lies in its support system. Unfortunately, for Indian freelancers relying on Razorpay, Instamojo, and PayU, customer service remains a sore point. Across the board, these platforms have faced criticism for poor support quality, as reflected in user ratings and frequent complaints.

Getting Help When You Need It

Razorpay offers support through chat, email, and phone, claiming 24/7 availability. However, users often complain about delayed responses and generic, copy-paste replies. Instamojo and PayU provide similar support options but have also been criticised for unresponsive teams and slow resolution times.

Take Amit Kashid’s experience with Razorpay, for instance. On 10th July 2025, he reported that the POS system failed to process UPI payments, which were crucial for his business. Despite filing multiple complaints and following up for over 10 months, all he received were standard replies, repeated requests for screenshots, and empty promises.

Another example comes from Offbeat Goa, which had to cancel an event on 19th February 2025 because Instamojo’s payment link stopped working. After three days of trying to get help, they were told to wait another 24–72 hours, leaving them with no resolution in time.

What Users Actually Say

User reviews paint an even clearer picture of the challenges. Razorpay has a 1.4/5 rating on Trustpilot from 383 reviews and a 3.1/5 customer service score on Capterra. Instamojo fares no better, with a 1.4/5 Trustpilot rating based on 47 reviews and a 3.2/5 score on Capterra. PayU also scores 1.4/5 on Trustpilot from 35 reviews.

Common complaints include unresponsive support teams, unexplained delays in payouts, and funds being held without proper justification. As Smit Pipaliya, an Instamojo user, shared:

"Instamojo is one of the worst payment gateways we have used. While collecting payments is easy, getting our own money out is a nightmare! Payouts are delayed without clear explanation, reducing transparency. Customer support is useless – only copy-paste responses, no real help. Funds held without proper communication – businesses suffer due to their inefficiency."

Razorpay users echo similar frustrations. Devansh Kaushik described his experience as "absolutely the worst ever customer support – noted over three months".

The MSME Development Institute has also issued warnings about Razorpay:

"Entrepreneurs, Please Be Aware! If you’re planning to use Razorpay as a payment gateway, think twice. We’ve had a very concerning experience: Customer payments were held without valid cause. No direct support or escalation mechanism. One dispute or chargeback can freeze all funds. Poor merchant communication and no timely resolution."

User Experience Pros and Cons

Here’s a quick breakdown of user feedback across the three platforms:

Platform	Pros	Cons
Razorpay	• 24/7 support availability • Easy integration praised by some users • User-friendly interface	• Issues remaining unresolved for months • Funds held without valid explanation • Ineffective escalation
Instamojo	• Easy initial setup and registration • Simple payment collection process	• Delayed payouts without explanation • Difficulty in cancelling or modifying accounts • Poor communication during issues
PayU	• Established platform with wide adoption	• Unresponsive account managers • Tickets closed without resolution • Long refund processing times • Ineffective communication and delayed resolutions

While these platforms do offer user-friendly technical features, their lacklustre customer support can be a major drawback. For freelancers who depend on prompt payments and efficient issue resolution, this can result in serious disruptions. Many users report being bounced between departments with no clear answers, highlighting that these challenges are widespread across the industry rather than isolated incidents.

Final Verdict: Which Gateway to Choose

Based on the detailed comparisons above, here’s a quick guide to help you decide which payment gateway fits your freelancing needs.

Key Takeaways

All platforms generally charge around 2% + GST for domestic transactions and 3% + GST for premium cards. The real differences lie in settlement times and extra features.

PayU shines with its Priority Settlements feature, offering 15-minute, 24/7 settlements. This is much faster compared to Instamojo, which operates on a T+3 days settlement cycle. If quick access to your funds is a priority, PayU is the clear winner.

When it comes to international payments, PayU offers advanced fraud prevention and seamless transaction processing, making it an excellent choice for freelancers with global clients. On the other hand, Razorpay focuses more on the Indian market. Instamojo, meanwhile, is better suited for those dealing primarily with domestic transactions.

Best Gateway for Different Freelancer Profiles

Here’s how each platform aligns with specific freelancer needs:

• For fast payouts: PayU’s 15-minute Priority Settlements ensure you get your earnings almost instantly.
• For international clients: PayU’s strong international transaction capabilities and fraud prevention measures make it ideal for global freelancing.
• For India-focused freelancers: Razorpay offers a wide range of domestic features, including instant settlements and seamless integrations. It’s a great choice for those serving primarily Indian clients.
• For beginners or small-scale freelancers: Instamojo is the easiest to set up, thanks to its simple registration process. However, with a user rating of just 1.8/5, it’s best for those prioritising ease of use over advanced features.
• For growing freelancers: Razorpay’s scalability and integration options make it well-suited for freelancers looking to expand.

Ultimately, your choice should depend on what matters most to your freelance business – whether it’s fast settlements with PayU, Razorpay’s strong domestic offerings, or Instamojo’s simplicity for getting started.

FAQs

How does the customer support of Razorpay, Instamojo, and PayU compare for Indian freelancers in 2025?

Customer support can make or break a freelancer’s experience with payment gateways, and in 2025, Razorpay, Instamojo, and PayU all seem to fall short in this department.

Razorpay has been criticised for its sluggish and heavily automated responses. Many users have shared their frustration over how difficult it is to get issues resolved quickly. Similarly, Instamojo faces complaints about support being unresponsive or not very helpful, leaving users feeling stuck when problems arise. PayU doesn’t fare much better, with delays in response times and frequent struggles to address critical issues like refunds or fraud.

For freelancers, who often rely on prompt and reliable support to keep their operations running smoothly, these shortcomings can be a dealbreaker. It’s worth considering these factors carefully before committing to any of these platforms.

What are the onboarding processes and document requirements for Razorpay, Instamojo, and PayU for Indian freelancers?

Razorpay, Instamojo, and PayU offer onboarding processes designed with Indian freelancers in mind, but each has its own approach and requirements.

• Razorpay: Freelancers need to sign up and complete an online KYC process. Key documents include a PAN card, Aadhaar card, and bank account details.
• Instamojo: Known for its simplicity, it requires minimal documentation. Freelancers only need basic ID proof, like a PAN card, and bank account details for quick KYC approval.
• PayU: This platform has slightly more formal requirements, asking for a PAN card, address proof, and business registration documents like GSTIN.

All three platforms ensure basic KYC compliance, but Razorpay stands out for its online verification, Instamojo is ideal for those seeking a hassle-free setup, and PayU suits freelancers with registered businesses.

Which payment gateway is best for international transactions, and what are the fees and settlement timelines?

For international transactions, Razorpay applies a fee of 2% for most international cards, while transactions made using Diners and Amex cards are charged at 3%. The settlement cycle is typically T+2 days. PayU, on the other hand, charges a flat 3% fee for all international payments, also settling funds within a T+2 timeline. Meanwhile, Instamojo offers fewer options for international transactions, and its fees are higher and less competitive compared to the other two. If working with international clients is essential, Razorpay or PayU could be better choices due to their straightforward pricing and quicker settlements.

Related posts

• Best Business Bank Accounts for Freelancers in India 2025
• Top 10 Invoice Management Apps for Indian Freelancers
• How to Handle Late Payments: Legal Options for Indian Freelancers
• Setting Up Automated Payments and Recurring Billing Systems for Indian Freelancers