Best Odoo Payment Gateways for India in 2026: Juspay, Razorpay, Paytm & More

Best Odoo Payment Gateways for India in 2026

Category: Geo-Targeted Guide  |  Audience: Indian eCommerce Businesses and Odoo Users in India  |  Type: Comparison and Feature Guide

Your Checkout Page Is Costing You More Than You Think

India has one of the most demanding digital payment ecosystems in the world. Customers expect UPI, cards, net banking, wallets, and EMI at checkout. They expect it to load fast, work on mobile, and confirm in under three seconds. If your Odoo store cannot deliver that, they leave.

The numbers support this. UPI alone processed 22.64 billion transactions in a single month in 2026. That is not a trend. That is the baseline expectation of every Indian online shopper. If your payment gateway does not support seamless UPI flows, 70% of your cart fills will result in abandonment before payment completes.

But choosing the right gateway for your Odoo store goes beyond UPI support. There are RBI licensing requirements, TDS deduction obligations under Section 194H, GST on gateway fees that needs to be tracked for ITC claims, and reconciliation between the gateway's settlement reports and your Odoo accounting ledger. Get any of this wrong and you are looking at compliance penalties, revenue leakage, and accounting errors that take months to untangle.

This guide cuts through the noise and tells you exactly which payment gateways work best with Odoo in India in 2026, how each one integrates, what they actually cost, and what you need to configure to stay compliant.

What a Payment Gateway Does Inside Odoo

When a customer completes a purchase on your Odoo eCommerce store, or clicks the Pay Now link in a digital invoice, the payment gateway is what happens in between. It captures the payment details, encrypts them, checks with the bank that funds are available, processes the transfer, and sends a confirmation signal back to Odoo.

That confirmation signal is critical. Once Odoo receives it, the sales order moves from draft to confirmed, inventory is allocated for dispatch, and the invoice is marked as paid in accounting, all automatically. If the gateway is misconfigured and Odoo never receives that signal, the customer has paid but your system shows nothing. That is when the chaos starts.

Choosing the right gateway for India specifically matters because the Indian payment ecosystem is not interchangeable with the global one. Stripe and PayPal are built for international card payments. Domestic Indian transactions need gateways with deep UPI routing, RuPay card support, net banking integrations across 67 Indian banks, and GST-compliant invoicing. Using a global gateway as your primary option in India is not just suboptimal. For many transaction types, it is legally restricted.

The Top Odoo Payment Gateways for India in 2026

Razorpay — Best for Most Indian Businesses on Odoo

Razorpay is the most practical starting point for the majority of Indian businesses running Odoo. It has native integration in Odoo 19, which means the connection is built directly into Odoo's core payment providers settings. No additional module purchase, no third-party connector to maintain.

• Transaction fee: 2% plus 18% GST on the fee

• International card payments: supported with an additional 2% premium

• UPI support: full Intent flows for mobile and Collect flows for desktop

• Payment methods: 100 plus options including RuPay, all major cards, 67 bank net banking integrations, wallets, and EMI

• Recurring billing: best-in-class subscription management with automated retry logic and dunning management

• Refunds: automated via webhooks directly from the Odoo backend

For SaaS businesses using Odoo Subscriptions, Razorpay's recurring billing architecture is particularly strong. It handles UPI Autopay mandates, card-based recurring charges, and automatic retries on failed payments, all of which sync back to Odoo's subscription module.

Juspay — Best for High-Volume eCommerce Operations

Juspay is not a standard payment gateway. It is a payment orchestrator. Instead of routing all transactions through its own banking relationships, Juspay sits on top of multiple gateways including Razorpay, PayU, and direct bank connections, and routes each transaction to whichever one has the highest success probability at that exact moment.

For a large retail operation processing tens of thousands of orders daily, even a 1% improvement in payment success rates translates to significant retained revenue. That is what Juspay delivers. It also offers the most advanced UPI Server-to-Server direct PSP integration in India, enabling frictionless in-app UPI payment experiences and complex UPI Autopay flows.

• Odoo integration: requires a specialized third-party connector module from certified partners

• Pricing: custom and volume-based, negotiated based on gross transaction value

• Best suited for: high-volume retail, large marketplaces, and businesses where payment success rate directly impacts daily revenue

Cashfree — Best for Startups and Multi-Vendor Marketplaces

Cashfree competes on price more aggressively than any other major Indian gateway. At 1.75% per transaction, it is structurally cheaper than Razorpay and PayU on the base rate. For marketplaces and platforms with thin margins and high volume, this difference compounds quickly.

Where Cashfree genuinely stands out is in its payout infrastructure. If your Odoo setup involves disbursing payments to multiple vendors, sellers, or partners, Cashfree's payout engine handles this better than most alternatives in India.

• Transaction fee: 1.75% plus 18% GST on the fee

• Odoo integration: third-party connector module required

• UPI support: robust API engine

• Best suited for: startups, multi-vendor marketplaces, and businesses where vendor disbursements are a key operational requirement

PayU — Best for Large Traditional Enterprises

PayU is one of the most established payment aggregators in India and is used by several of the country's largest traditional eCommerce companies. Its core strengths are mature risk management, professional chargeback handling, and broad international payment support across 150 plus countries.

• Transaction fee: 2% plus 18% GST, with negotiated enterprise rates available

• Odoo integration: third-party connector module required

• International payments: broad global coverage, strong for Indian exporters

• Recurring billing: Token Hub infrastructure, slightly less developer-friendly than Razorpay

• Best suited for: large enterprises with complex chargeback needs and significant cross-border transaction volumes

CCAvenue — Best for Businesses That Need Maximum Payment Method Coverage

CCAvenue is one of the oldest and most recognized payment gateways in South Asia. Its primary competitive advantage is the sheer breadth of payment options it supports, over 200 granular payment methods, including several niche options not available elsewhere.

• Transaction fee: custom based on privilege plan, annual plan costs around $333 plus variable rates

• Odoo integration: native in Odoo 19, also available as third-party module

• Best suited for: legacy enterprises and businesses that require maximum payment method variety for a diverse customer base

What About Stripe and PayPal?

Both Stripe and PayPal are built into Odoo out of the box globally. For India specifically, their use as primary gateways for domestic transactions is heavily restricted. PayPal is legally limited to cross-border export transactions only. An Indian merchant cannot use PayPal to process a domestic INR payment from an Indian customer. Stripe, while technically compliant, lacks the depth of UPI, RuPay, and domestic net banking integrations that Indian consumers expect.

The right approach is to use an Indian gateway as your primary option for domestic transactions and use Stripe or PayPal as a secondary option specifically for international customers.

What Happened to Paytm in 2026

Paytm is no longer a viable payment gateway option for Odoo users in India. On April 24, 2026, the RBI formally cancelled the banking license of Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, citing persistent regulatory non-compliance, anti-money laundering failures, and governance lapses that went unresolved despite years of warnings dating back to 2022.

While One97 Communications, the parent company, announced that consumer-facing apps and QR codes would continue operating through partner banks, the settlement infrastructure disruption severely affected merchant payment flows. The compliance risk and technical instability make Paytm an unsuitable choice for any business that needs reliable, uninterrupted payment processing.

If your Odoo store was using Paytm as a primary gateway, the recommended migration path is to Razorpay for most businesses, or Cashfree for cost-sensitive operations.

How to Connect Razorpay to Odoo — Step by Step

• Step 1: Log into your Razorpay merchant dashboard and switch to Test Mode before doing anything else

• Step 2: Go to Account and Settings, then Website and App Settings, then API Keys. Generate a new key pair and copy the Key ID and Secret Key

• Step 3: In Odoo, go to Accounting or Website, then Configuration, then Payment Providers. Select Razorpay and enter your Key ID and Secret Key in the credentials tab

• Step 4: Set the environment to Test Mode for validation, or Enabled for live transactions

• Step 5: Go back to the Razorpay dashboard, select Webhooks under Account and Settings, and click Add New Webhook

• Step 6: Enter your Odoo URL in this exact format: https://yourdomain.odoo.com/payment/razorpay/webhook. Set a secure webhook secret and enter the same secret in your Odoo Razorpay configuration

• Step 7: Subscribe the webhook to these events: payment.authorized, payment.captured, payment.failed, refund.failed, and refund.processed

• Step 8: Run a test transaction in sandbox mode to verify the full flow from checkout to confirmed sales order and posted invoice in Odoo accounting

When a customer pays successfully, Razorpay fires the webhook to Odoo. Odoo registers the payment, creates the accounting journal entry, and confirms the sales order automatically. The funds sit in an Outstanding Receipts clearing account until they settle in your bank, typically two working days later. Your accountant then matches the bank statement line against the clearing account to finalize reconciliation.

Indian Compliance Requirements Every Odoo User Must Handle

GST on Gateway Fees and ITC Claims

Every payment gateway charges a transaction fee. On that fee, they charge 18% GST. For a business processing Rs 1 crore per month at 2%, the gateway fee is Rs 2 lakhs. The GST on that fee is Rs 36,000. That Rs 36,000 is Input Tax Credit you are legally entitled to claim in Odoo accounting.

Many Indian businesses make the mistake of booking only the net settlement amount they receive from the gateway, without accounting for the commission and the GST on it separately. This overstates revenue and permanently forfeits the ITC you are owed. The gateway must provide GST-compliant invoices for you to claim this correctly.

TDS Under Section 194H on Gateway Commissions

Any Indian business entity whose turnover exceeds Rs 1 crore must deduct 2% TDS on payment gateway commission fees if the cumulative fees exceed Rs 20,000 in a financial year. This falls under Section 194H of the Income Tax Act, which covers commissions and brokerage payments.

In Odoo 19 with the Indian Localization module active, you can configure TDS automation under Accounting > Configuration > Settings > Indian Integration. The system calculates the 2% TDS on the base commission amount, excluding GST, and posts it to a dedicated TDS Payable liability account automatically when you process the gateway's vendor bill.

RBI Payment Aggregator Licensing

Before integrating any gateway into your Odoo store, verify that it holds a valid RBI Payment Aggregator license. This is non-negotiable for legally processing domestic Indian payments. For businesses accepting international card payments, additionally verify that the gateway holds the RBI Payment Aggregator Cross Border license. Gateways without proper licensing expose your business to regulatory risk, regardless of how well the Odoo integration functions.

Gateway Comparison: At a Glance

The Scale of Indian Digital Payments in 2026

These numbers explain why getting your payment gateway right is not optional for any Indian eCommerce business:

• UPI processed 22.64 billion transactions in March 2026 alone, a new all-time record

• UPI transaction value in March 2026 reached Rs 29.53 lakh crore, up from Rs 26.84 lakh crore in February

• UPI now accounts for 57% of all payment transactions in India, surpassing physical cash at 38%

• Average daily UPI transaction volume stands at 730 million, with a daily value of Rs 95,243 crore

• Year-on-year growth is 24% by volume and 19% by value

• Without flexible domestic payment options, 70% of online shopping carts are abandoned before checkout completion

• PhonePe processes 45.5% of UPI volume, Google Pay holds around 33%, and Paytm trails at 7 to 8%

Getting Your Odoo Payment Setup Right From the Start

The gateway choice itself is only half the job. How you configure it inside Odoo, how you handle the accounting for fees and taxes, and how you structure the checkout experience for Indian mobile users determines whether your payment setup actually works or quietly costs you money every month. If you are building or migrating an Odoo eCommerce store in India and want the payment, accounting, and compliance setup done correctly, Browseinfo's Odoo Integration Services cover payment gateway connections, webhook configuration, and Indian tax localization setup. You can also explore our Odoo eCommerce Tutorial for a walkthrough of how the Odoo store and payment flow work together, or reach out to our team through Odoo ERP Consulting Services for a recommendation specific to your business model and transaction volumes.