Cashfree vs Razorpay: Which is Better for SMEs?
Choosing the right payment gateway can boost conversions and simplify accounting. This guide compares Cashfree and Razorpay for Indian SMEs—covering pricing, features, settlement speed, integrations, and affiliate earning potential.
Need finance tools alongside your gateway? Check our Finance Product Website.
Quick Verdict
Cashfree is ideal if you want free UPI, fast onboarding, and strong payouts/AutoCollect features—great for shops and D2C brands. Razorpay shines with a broader product suite (e.g., RazorpayX, payroll, subscriptions) for startups that need an all-in-one stack.
Feature Comparison
Criteria Cashfree Razorpay UPI Collections Typically 0% MDR for merchants; business-grade tools. UPI supported; MDR/plan may vary—confirm current pricing. Other Payment Modes Cards, NetBanking, Wallets, EMI, International. Cards, NetBanking, Wallets, EMI, International. Settlements T+1 default; Same-day available for eligible merchants. T+1 default; Same-day/instant options on selected plans. Dashboards & Reports Detailed recon, GST-friendly reports, payout analytics. Rich reports; plus RazorpayX banking workflows. Payouts Strong Payouts suite to vendors/employees. RazorpayX for payouts, banking, and payroll. Plugins/Integrations Shopify, WooCommerce, WordPress, custom APIs. Shopify, WooCommerce, WordPress, custom APIs. Affiliate Opportunity Recurring commissions on transactions. One-time referral bonus + smaller ongoing % on volume.
Who Should Choose What?
- Choose Cashfree if your focus is UPI volume, quick setup, and robust payouts/AutoCollect. Perfect for local shops, freelancers, and D2C brands.
- Choose Razorpay if you want a wider fintech suite (banking, payroll) and plan to scale workflows across teams.
Example: Cost & Earnings (Illustration)
Suppose a shop collects ₹1,00,000/day via UPI:
- Cashfree (affiliate view): Your recurring commission at 0.25% ≈ ₹250/day (₹7,500/month).
- Razorpay (affiliate view): Often a one-time bonus (e.g., ₹500) + smaller ongoing % (e.g., 0.1%), ≈ ₹100/day ongoing. (Illustrative; confirm current program terms.)
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FAQs
Is UPI free on both? Cashfree commonly provides 0% MDR on UPI for merchants. Razorpay supports UPI too; pricing/plan can vary—always check latest terms.
Which has faster settlements? Both offer T+1 by default; same-day/instant options depend on eligibility and plan.
Which is better for affiliates? Cashfree tends to favor recurring commissions; Razorpay mixes one-time bonus with smaller ongoing %.
Need working capital or business banking? Explore: Finance Product Website.
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