You want to accept payments. You don't have a company bank account. You don't want to deal with merchant accounts and paperwork.
Good news: you don't need any of that.
Modern payment platforms let you start accepting payments in minutes. But not all payment gateways are created equal—pricing varies dramatically, features differ, and some are better suited for specific use cases.
Here's exactly what startups use in 2026, with current pricing from each provider's website.
The Global Players
1. Stripe
What it does: Complete payment processing with the most powerful API in the industry.
Why startups choose it: Industry standard for a reason. Documentation is exceptional, integration takes hours not days, and every developer understands it. Stripe Connect handles marketplaces, Stripe Billing handles subscriptions, and their webhook system is bulletproof.
Pricing:
- Domestic (US): 2.9% + 30¢ per transaction
- International: Additional 1.5%
- No monthly fees - pay as you go
Best for: SaaS companies, marketplaces, startups planning global expansion, anyone who needs the most flexible integration.
Apply: stripe.com
2. Lemon Squeezy
What it does: Payment processing + Merchant of Record (handles taxes and compliance for you).
Why startups choose it: If you're selling internationally, tax compliance becomes a nightmare. Lemon Squeezy acts as the merchant of record—they handle VAT, sales tax, and remittance. You just collect the money and focus on your product.
Pricing:
- All transactions: 0.5% + 50¢ per transaction (includes tax handling)
- No additional tax fees - it's all bundled
Best for:
- Startups selling to international customers
- SaaS companies wanting to avoid tax complexity
- Solo founders and indie hackers
- Digital product sellers
Apply: lemonsqueezy.com
3. Dodo Payments
What it does: Full-stack Merchant of Record platform designed for SaaS and AI businesses. Supports 15,000+ businesses globally.
Why startups choose it: Dodo Payments combines payment processing with a complete billing platform. They handle tax compliance globally, offer adaptive currency conversion, and provide built-in fraud protection. Their comparison tool lets you calculate savings versus competitors in real-time.
Pricing:
- Standard Plan: 4% + 40¢ per transaction
- Enterprise: Custom pricing with dedicated support
- No hidden fees - tax and compliance included
- Cross-border handling included in pricing
Features:
- Merchant of Record (tax & compliance covered)
- 180+ payment methods globally
- Subscription billing and usage-based pricing
- In-app purchase integration
- Affiliate management built-in
- Real-time analytics and reporting
Best for:
- SaaS startups wanting simplified global billing
- AI companies selling subscriptions
- Startups wanting a Stripe alternative with MoR
- Teams needing multiple payment methods
Apply: dodopayments.com
4. Polar
What it does: Open-source, developer-focused Merchant of Record billing platform.
Why startups choose it: Polar is built by developers for developers. It's open-source, priced 20% cheaper than other MoR alternatives, and integrates seamlessly with modern stacks. Built on Stripe's infrastructure but handles the complexity for you.
Pricing:
- All transactions: 4% + 40¢ per transaction
- Subscription payments: +0.5% additional
- International cards: +1.5% additional
- No hidden fees beyond what's listed
Features:
- Complete billing infrastructure
- Usage-based billing
- Customer portal
- Checkout links
- Revenue and profit tracking in real-time
Best for:
- Technical founders and indie hackers
- Open-source project monetization
- Quick SaaS launches
- Developers wanting open-source payment infrastructure
Apply: polar.sh
Indian Market Leaders
5. Razorpay
What it does: Complete payment solution for Indian startups and businesses.
Why startups choose it: Dominant player in India's startup ecosystem. Excellent UPI integration, strong customer support, and startup-friendly onboarding. Their startup program offers faster approval and dedicated support.
Pricing:
- Standard rate: 2% + GST per transaction
- Startup program: Reduced rates available
- UPI and wallets: Often lower than card payments
Features:
- UPI, cards, net banking, wallets
- Subscription billing
- EMI options
- Vendor payments
- Payroll solutions
Best for: Indian startups targeting Indian customers, businesses needing strong UPI support, local SaaS companies.
Apply: razorpay.com
6. Cashfree Payments
What it does: India's leading payment gateway with competitive rates and comprehensive solutions.
Why startups choose it: Cashfree offers the lowest promotional pricing in the market right now. They're processing billions for major Indian companies and have excellent API documentation.
Current Promotional Pricing (Limited Time):
- New merchants: 1.6% per transaction (valid 12 months, for GTV up to ₹1 Cr/month)
- Standard rate: 1.95% per transaction
- International cards: 2.69% - 2.99%
- No setup fees
Features:
- 180+ payment modes (UPI, cards, wallets, net banking, EMI, Pay Later)
- 20-40% higher success rates than competitors
- Instant activation
- AI-powered fraud protection
- Settlement in T+0 or T+1
Best for:
- Indian startups at any stage
- High-volume businesses
- Startups wanting the lowest rates
- D2C brands and e-commerce
Apply: cashfree.com
7. PhonePe Business
What it does: Payment gateway from India's largest digital payments platform.
Why startups choose it: PhonePe has massive user reach in India. Their gateway offers competitive rates and leverages the trust factor of the PhonePe brand. Excellent for businesses targeting UPI-first customers.
Current Pricing:
- Promotional rate: 1.95% per transaction (limited period offer)
- Standard rates vary by business type and volume
- No setup fees for most businesses
Features:
- India's largest UPI ecosystem
- Payment links for easy collection
- QR codes for offline/online payments
- Subscription billing
- Merchant lending options
- Integration with PhonePe ads
Best for:
- Businesses targeting PhonePe's massive user base
- UPI-first strategies
- Retail and D2C brands
- Businesses wanting brand trust
Apply: business.phonepe.com/payment-gateway
Quick Comparison Table
Provider | Pricing | MoR/Tax | Best For |
|---|---|---|---|
| Stripe | 2.9% + 30¢ | No | Global SaaS, marketplaces |
Lemon Squeezy | 0.5% + 50¢ | Yes | International SaaS, indie hackers |
Dodo Payments | 4% + 40¢ | Yes | AI/SaaS, global billing |
| Polar | 4% + 40¢ | Yes | Open-source, indie developers |
Razorpay | 2% + GST | No | Indian startups, UPI |
Cashfree | 1.6% - 1.95% | No | Lowest Indian rates |
PhonePe | 1.95% | No | UPI-first, brand trust |
Choosing Based on Your Situation
Your Situation | Best Option | Why |
|---|---|---|
Global SaaS startup | Stripe or Lemon Squeezy | Stripe for flexibility, Lemon Squeezy if tax complexity is overwhelming |
Selling to international customers | Lemon Squeezy or Dodo Payments | Merchant of Record handles all tax compliance |
Indian startup, Indian customers | Cashfree (1.6% promo) or Razorpay | Best UPI integration, lowest rates, local support |
Indie hacker, open-source project | Polar or Lemon Squeezy | Developer-friendly, handles everything, no merchant account needed |
AI startup with subscription AI usage | Dodo Payments or Polar | Built for usage-based and subscription billing |
One-time digital products | Gumroad, Stripe, or Lemon Squeezy | Simple setup, handles digital delivery |
UPI-first strategy in India | PhonePe or Cashfree | Best UPI success rates, lowest UPI fees |
Marketplace with payouts | Stripe Connect | Best marketplace infrastructure |
Free Payment Options
8. Stripe Atlas (For Company Formation)
If you're forming a company through Stripe Atlas, you get payment processing included with $50k in fee-free processing.
Apply: stripe.com/atlas
9. Ko-fi
What it does: Accept payments and memberships for creators.
Why you might need it: Free for creators. No transaction fees (optional tipping model).
Best for: Content creators, artists, writers, streamers.
Apply: ko-fi.com
Quick Setup Guides
Stripe Setup (Fastest)
- Go to stripe.com
- Sign up with email
- Verify your identity (KYC)
- Add bank account for payouts
- Copy API keys to your app
- Test with sandbox mode
- Go live
Time: 10-15 minutes
Lemon Squeezy Setup
- Go to lemonsqueezy.com
- Sign up
- Add your company details
- Connect bank account
- Create your first product
- Embed checkout or use API
Time: 15-20 minutes (includes tax setup)
Dodo Payments Setup
- Go to dodopayments.com
- Sign up for account
- Complete business verification
- Configure products and pricing
- Integrate API or use pre-built components
- Test and go live
Time: 15-30 minutes
Polar Setup
- Go to polar.sh
- Sign up for account
- Connect your GitHub (Polar integrates with your repos)
- Create products and pricing
- Use checkout links or embed checkout
- Deploy
Time: 10-20 minutes
Razorpay Setup (India)
- Go to razorpay.com
- Sign up for startup program (faster approval)
- Submit business documents
- Get approval (24-48 hours)
- Integrate API
- Go live
Time: 1-2 days (approval required)
Cashfree Setup (India)
- Go to cashfree.com
- Sign up for account
- Complete KYC verification
- Choose payment gateway product
- Integrate API or use pre-built plugins
- Go live (instant activation available)
Time: Same-day activation possible
PhonePe Setup (India)
- Go to business.phonepe.com/payment-gateway
- Register your business
- Complete documentation
- Choose pricing plan
- Integrate SDK or API
- Go live
Time: 1-3 days for activation
What About Subscription Payments?
All major platforms support subscriptions:
- Stripe: Subscriptions, proration, trials, usage-based billing
- Lemon Squeezy: Subscriptions with automatic tax handling
- Dodo Payments: Subscriptions, usage-based, seat-based billing
- Polar: Subscriptions with built-in customer portal
- Razorpay: Subscriptions for Indian customers
- Cashfree: Subscription and EMI options
- PhonePe: Subscription billing available
You set:
- Price
- Billing frequency (monthly, yearly)
- Trial period (optional)
Platform handles:
- Recurring billing
- Failed payment retry
- Cancellation
- Proration
International Payments
Stripe Atlas Companies
If you formed a company through Stripe Atlas, you get:
- Stripe payment processing
- Multi-currency support
- Global customer acceptance
Merchant of Record Advantage (Lemon Squeezy, Dodo, Polar)
When using a Merchant of Record:
- They collect payment in their name
- They remit taxes to each country
- You receive net amount
- No tax compliance needed
- No VAT registration required
This is invaluable for startups selling to customers in multiple countries.
Common Mistakes to Avoid
Mistake 1: Not Testing Thoroughly
Always test with sandbox/test mode before going live. Set up test cards and verify the entire flow.
Mistake 2: Ignoring Failed Payments
Set up automatic retry logic for failed payments. Use dunning tools. Many customers churn simply because their card expired and they didn't know.
Mistake 3: No Refund Process
Have a clear refund policy and know how to process refunds. Make it easy for customers—this reduces chargebacks.
Mistake 4: Not Saving Transaction Data
Keep records of all transactions for accounting. Export data monthly. Payment gateways can disappear or change.
Mistake 5: Assuming One Platform Fits All
Consider using different platforms for different products. You might use Stripe for your main SaaS and Gumroad for one-time courses.
Mistake 6: Ignoring Payment Success Rates
Some gateways have higher success rates than others. A 2% difference in success rate directly impacts your revenue. Test with real customers.
The Bottom Line
You don't need a merchant account to accept payments. Modern platforms make it easy.
For global SaaS: Start with Stripe for flexibility. Switch to Lemon Squeezy if tax complexity becomes overwhelming.
For AI/SaaS startups: Consider Dodo Payments or Polar for built-in usage billing and modern developer experience.
For Indian startups: Cashfree offers the lowest promotional rates (1.6%), while Razorpay has the strongest ecosystem and PhonePe offers brand trust.
For indie hackers: Polar or Lemon Squeezy let you start in minutes without paperwork.
The important thing: start accepting payments. Don't let payment setup delay your launch.
Need Help with Payments?
At Startupbricks, we help startups set up payment infrastructure. Whether you need:
- Payment platform selection based on your use case
- Integration support for your tech stack
- Subscription setup and billing strategy
- International payment strategy
- Multi-gateway setup for optimal success rates
Let's talk. We help startups get paid.