Instamojo or Razorpay - The better Online Payment Gateway

Instamojo or Razorpay - The better Online Payment Gateway

As of today, 160 million unique digital payments users are found just in India, which accounts for about 13% of the population. In European countries, the percentage is as high as 68%. The pandemic has further boosted the use of digital payments. This triggers a question, that being, "Which is the best suited platform for digital transactions?"

Here, we are going to discuss and compare two digital payments platforms, namely Instamojo and Razorpay, both of which were founded in India, with a difference of 1 year. Although the primary difference in the interface one would notice, is that while Instamojo is more of a payment processor and uses payment gateway in the back-end, Razorpay is in itself a proficient payment gateway with a plethora of other options such as payment links and webhooks, there are many other factors which draw the line.



Instamojo vs Razorpay
Frequently Asked Questions


Founded in 2012 and based in Bengaluru, Instamojo is a convenient and adaptable payment gateway solution, which seamlessly integrates with websites through the use of feasible APIs. When it comes to online payments, the user usually looks for security, transaction speed, and transparency. Instamojo has all of these to offer and more.

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Pros of using Instamojo:

  • Instamojo has an excellent pricing model compared to its counterparts. With a freemium approach, the its basic services come free of cost, while the more advanced features are priced.
  • It also offers management of gift cards for a positive customer experience.
  • Instamojo also has an efficient fraud protection algorithm to prevent unnecessary revenue losses.

Cons of using Instamojo:

  • Instamojo doesn't work for you if you are a freelancer. It is specifically built to cater to the needs of small to large enterprises.
  • There is no subscription based plan like Razorpay.
  • Instamojo has a relatively limited availability, and is not available on WinPhone, IOS or Macintosh.

The interface is designed in such a way that the user has the convenience to provide payment links on their website, add pay buttons with integrated payment gateways. Instamojo is a multi-channel payments collection, encompassing some great amenities such as effortless checkout and payment links. Through the use of payment APIs, platform plugins and webhooks, Instamojo integrations with a website or a stack has never been easier. Along with that, its Android SDK enables payment through applications through Android integrations.

Features offered by Instamojo:

Instamojo free version Instamojo premium version
Payment gateway available Payment gateway available
Transaction fee is 5% + 3 Transaction fee is 2% +3
Allows 1 picture for each product Allows 10 pictures for each product
No offers or discounts Offers, coupons, discounts and gift cards

All the mentioned payment methods come with payment analytics and a post payment customizable experience, which makes the experience of both, the user and the customer, an inordinate one.

The analytics feature that Instamojo has to offer is no less than the payment aspect. It offers analysis and overall rundown of the sales performance which not only helps manage payments, but also offers insights as to where and in what domain the strong suite lies. It also allows you to Geo-navigate your customer base and engagement with real time performance comparison as well as gives a detailed look on the payments through an organized and user-friendly dashboard. Also, even if the payment fails, Instamojo adds it as a lead as well as allows you to communicate with your potential customers to make their experience a bit more personalized.

Instamojo is more than just a payment gateway. Instamojo provides complete business solutions right from business capital requirements shipping & logistics.

Instamojo offers a suite of products to help businesses grow. The business solutions are as follows :

  1. mojoCommerce: mojoCommerce is a free online store, you can sell your physical and digital goods through the platform.
  2. Smart Links: Smart payment links can be created with the help of Instamojo smart links. These smart links help to make payments faster and collect customer data.
  3. Instamojo App Store: As a business, you can connect your favorite apps with Instamojo through the Instamojo app store.
  4. mojoCapital: mojoCapitals allows people to simplify and resolve their business cash flow requirements and capital requirements.
  5. mojoXpress: mojoXpress provides delivery services for businesses. It delivers to more than 12000 pin codes in India.Instamojo for Developers: Simple Payment APIs and Plugins to integrate into websites or mobile apps.


Razorpay was founded in 2013 and is based in Bengaluru as well, with the current serving CEO, Harshil Mathur since 2014. One of the first few things that crosses your mind when it comes to a successful payment application is its user base, because that is what reflects its reputation and usage. That is exactly where Razorpay excels; with a market of more than 8,00,000 users, Razorpay flaunts an interactive interface with features such a automated receipts and custom payment pages.

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Pros of using Razorpay:

  • There are a plethora of Razorpay integrations which you can embed, including OpenCart, WordPress, and Wix.
  • It offers a standard and enterprise edition for user specific needs. Both the models are completely customizable with branding features.
  • Razorpay offers its users 24/7 live customer support.
  • It also offers a fixed processing charge, which is usually less than Instamojo, although by a small margin.

Cons of using Razorpay:

  • There is no standard or free version of Razorpay, which although does not make it any less efficient, the users do not really have a trial option.
  • Offers no customer friendly amenities such as gift cards.
  • Razorpay does not use Secure Sockets Layer(SSL) support, and hence, is less secured.

With a payment gateway that supports Credit/Debit cards, Netbanking with over 50 banks, UPI and various mobile wallets, Razorpay has a plethora of payment modes which make it customer friendly and accounts for a greater transaction number due to the availability and variety of payment methods. Its powerful and interactive dashboard offers in-depth analysis and statistics on payments, invoices, and refunds making it easy to use. Also the real-time stats help user in strategic and performance based decisions and generate custom reports.

Features offered by Razorpay:

Razorpay Standard features Razorpay Enterprise features
Designed for small and medium business Designed for big enterprises
Transaction charges 2-3% Custom pricing for business needs
Support via email and call Offers 24/7 priority support
Complete online activation Online activation within 24 hours

Many a times, a customer is retained by the ease of interface and transaction if you have an online marketplace. Razorpay offers seamless and android integrable SDKs(one of the lightest there is, with about just over 200KB) with features such as auto update and auto fill OTP, which helps provide customers, the best experience.  Thirdwatch, a subsidiary of Razorpay, helps you track fraud customers and recognize non deliverable addresses, saving users from unnecessary revenue loss. It is an AI based engine which recognizes and flags the high risk addresses with a red and low risk ones with green color, which is quite convenient, to say the least.

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Comparison between Razorpay and Instamojo

Razorpay Instamojo
24/7 tech support and live rep Does not offer live rep
Built for all MSMEs and caters to individuals as well Does not support individuals and/or freelancers; only enterprise support
Does not offer SSL support making it less sequre Secured through Secured Sockets Layer(SSL)
Razorpay Pricing for MasterCard, Debit Card, Visa and net banking is 2% Pricing for MasterCard, Debit Card, Visa and net banking is 2% + INR 3 and 5% for digital goods
Offers mobile optimization on standard and enterprise version Does not permit mobile optimization
Permits recurring payments Does not allow recurring payments
Auto-update feature updates the application with every new mobile wallet update to hit the market No auto-updating available for mobile wallets
Failed payments are not handled as well Failed payments are altered into leads and are organised
Does not allow personalised customer interaction Allows a more personal interaction with customer


To say, one works better than the other would be quite unjust, since both of these applications excel at user specific areas. While Instamojo charges a little more than Razorpay, it also offers SSL security. Moreover, while Razorpay offers mobile optimization for both of its versions, Instamojo gives away gift cards for better customer service. An apt comparison would be that Razorpay can be used for even individual business and freelancing purposes, on the contrary, Instamojo could be slightly more suited to bigger enterprises which demand security.

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