Bengaluru-based fintech firm Cashfree Payments has introduced a zero-fee payment gateway initiative designed to attract new small and medium-sized businesses (SMBs).
This strategic move aims to broaden the company’s client base by removing initial costs for merchants as they join the platform. The initiative serves as a targeted effort to capture a larger share of the competitive Indian digital payments sector.
Cashfree Payments Fee Waiver Program Details
The new program allows eligible merchants to process payments without incurring gateway fees until they reach a gross merchandise value (GMV) of INR 20 lakh. This waiver remains active for qualifying businesses until the end of the 2026–27 fiscal year.
By focusing on this specific threshold, the company intends to support early-stage businesses while building a foundation for long-term platform engagement.
Company cofounder Reeju Datta described the initiative as a marketing investment aimed at scaling the firm’s merchant network. While the company currently serves one million merchants, this program targets the addition of two million SMBs by the conclusion of FY27.
Once a merchant exceeds the INR 20 lakh GMV limit, standard transaction fees will apply to their future processing activities.
Strategic Growth in India’s Competitive Payments Market
The Indian digital payments market remains highly saturated, with over fifty companies competing for merchant processing volume. Major industry participants currently include entities such as Razorpay, PayU, PhonePe, BillDesk, and AvenuesAI.
Cashfree Payments is utilizing this fee-waiver strategy to differentiate its offering and encourage businesses to transition from existing payment service providers.
Data indicates that approximately 25,000 new businesses enter the market each month, with roughly 20% of these entities currently evaluating Cashfree for their payment needs. The company is positioning its platform to accommodate diverse payment methods, including credit cards on UPI, netbanking, and various international card networks like American Express and Diner.
This technical flexibility is intended to simplify the migration process for merchants seeking alternatives to their current providers.
Optimizing Merchant Onboarding for Peak Sales Periods
The timing of this initiative aligns with the upcoming festival season, a period that typically accounts for 40% of annual revenue for many direct-to-customer businesses. By signing up before the peak sales window, new sellers can manage their payment costs more effectively.
Statistics suggest that 90% of new merchants joining before this period reach the INR 20 lakh GMV milestone during the season.
Integration times for new partners have been significantly reduced, allowing businesses to begin processing transactions in minutes rather than months. This operational efficiency is a key component of the company’s strategy to attract and retain merchants who are dissatisfied with their current payment infrastructure.
By streamlining the onboarding experience, the firm aims to capture a larger volume of revenue-generating accounts.
This initiative represents a calculated effort by Cashfree Payments to solidify its market position by lowering entry barriers for emerging businesses. By focusing on high-growth potential merchants, the company seeks to secure a sustainable revenue stream as these businesses scale beyond their initial transaction volume thresholds.
