Stripe online payment, finally in India !

Stripe Payment Gateway available in India.

Yes ! I’m ecstatic to hear about Stripe starting their online payment service in India. Stripe payment gateway is known for its ease of integration with web and mobile apps. This is an awesome news.

If you are a web developer or you are learning web development, you can find thousands of tutorials online about integrating Stripe Payment Gateway in their web and mobile apps. Stripe checkout integration is one of the most requested feature among freelancing clients.

This always used to make me sad as Stripe wasn’t available in India. This meant that we could not even create an account to play around with its APIs.

There was finally a ray of hope last year when Stripe announced that they will release in India soon. And now finally its here. It’s time to rejoice.

Competition

Stripe faces tough competition from Indian Payment Gateways such as Razorpay, PayU, CCAvenue, InstaMojo etc. Razorpay in particular is fantastic and is league above all other payment gateways with is developer friendly API, top notch documentation and amazing customer support.

PayPal too is catering to the Indian audience in a limited way. But PayPal is mostly used as a means to receive International Payment by freelancers in India. India has one of the toughest laws about money transaction in and out of the country. This is mainly to avoid money laundering and restrict funds for terrorism, narcotics and other things. There are so many bureaucratic hoops. If you are an Individual or Freelancer, its so much difficult to accept payments from rest of the world. PayPal is the only solution most of the times and they charge up to 5.5% for most payments which definitely pinches your pockets.

I hope Stripe will provide some much needed competition to PayPal. Stripe should facilitate Indian freelancers to receive payments from their clients abroad.

UPI Support

India is currently seeing a spectacular boom in internet usage thanks to aggressive positioning by internet provider JIO telecom. So lot of Indians are consuming content, transacting online for the very first time. From past couple of years there is a strong upsurge in online payments due to a instant QR code based money transfer technology called UPI which was introduced by Government of India. PayTM, PhonePe, Google Pay, Amazon Pay and of course BHIM (by Govt of India) are some of the top UPI payment gateway apps. They work similar to AliPay, WeChat Pay etc which are popular in China.

I went through their API and Docs. Currently UPI, Net Banking, and Indian Payment Wallets are not supported. Stripe is currently supporting only credit cards and debit cards. If Stripe wants to cater to the domestic market, they should definitely support UPI, Net Banking and Indian Payment Wallets.

Stripe India Pricing

Stripe follows Pay as you Go method with following rates

  • Domestic Indian Cards (issued in India) – 2%
  • Domestic Indian Cards (issued out of India) – 3%
  • International Cards (issued anywhere in the world) – 4.3% + 2% additional for currency conversion

To compare PayPal charges 2.5% + (₹3 fixed fee) for domestic payments and a range of 3.4% to 4.4% + fixed fees for International payments. Now this range depends on monthly sales volume. So most of the time you can assume it to be 4.4% if you earn less than $3000.

To conclude, additional currency conversion fees at 2% seems to be steep which makes International Payment at 6.3% which is higher than PayPal.

I really hope Stripe also supports UPI, Net Banking and Indian Payment Wallets. PayPal already supports them.

I’m thankful that Stripe has finally arrived in India. I hope they do some market research on Indian audience and improve their solutions. I’m rooting for Stripe to capture a large pie of International Payment market share.