May 10 2025
Icici Bank Payment Gateway-Indian Payment Gateways for Skill-Based Gaming Platforms

Indian Payment Gateways for Skill-Based Gaming Platforms

If you’re looking for Indian payment gateways that support skill-based gaming platforms, here’s a curated list of options along with key considerations:

1. Razorpay

  • Features:
    • Supports skill-based gaming transactions (subject to compliance).
    • Offers UPI, cards, net banking, and wallets.
    • Provides automated KYC verification.
  • Limitations: Strict due diligence; may require additional documentation.

2. Cashfree Payments

  • Features:
    • Allows high-risk merchant accounts for gaming (case-by-case approval).
    • Supports recurring payments & subscriptions.
  • Note: Requires legal opinion on game legality.

3. PayU

  • Features: Used by fantasy sports platforms like Dream11.
    May accept skill-gaming businesses after scrutiny.

4.Instamojo

  • Simpler onboarding but limited to low-ticket transactions.
  • Not ideal for high-volume payouts.

5.CC Avenue

  • Works with some rummy/fantasy sports sites.
  • High-risk merchant category possible (extra fees apply).

Key Challenges:

✔️ Most gateways classify gaming as "high risk" – expect higher fees (~3–5% + GST).

✔️ Compliance is critical: You must prove your platform is legally classified as a "game of skill" (not chance) under state laws.

✔️ RBI’s strict stance on online gambling means even legitimate operators face extra scrutiny during onboarding.

Pro Tips:

✅ Maintain clear legal documentation distinguishing your platform from gambling/betting activities before applying

✅ Consider hybrid models where users deposit into wallets first rather than direct per-transaction billing

Would you like recommendations specific to certain states or transaction volumes?

Advanced Considerations for Indian Payment Gateways in Skill-Based Gaming

If you’re scaling a skill-based gaming platform (e.g., fantasy sports, rummy, poker, or quiz-based games), here’s a deeper dive into payment solutions and strategies:

6. Specialized High-Risk Payment Processors

Since mainstream gateways like Razorpay/PayU may reject or freeze accounts abruptly, consider:

  • Airpay: Works with gaming startups but mandates legal compliance checks.
  • Easebuzz: Supports fantasy sports platforms under strict KYC.
  • Zaakpay (Juspay): Used by some mid-sized gaming operators.

⚠️ Offshore gateways (e.g., Stripe, PayPal) are risky—RBI’s auto-debit rules and local settlement requirements make them impractical for Indian users.

7. Payout Solutions for Winnings

Gaming platforms need seamless withdrawal options:

  • UPI AutoPay: For instant withdrawals (integrate with APIs like Yes Bank/ICICI).
  • NEFT/IMPS: Via banking partners (e.g., Kotak, Axis).
  • Prepaid Cards/Wallets: Partner with wallets like Mobikwik or PayZapp to credit winnings.

💡 Tip: Use escrow accounts to segregate player funds—this builds trust and complies with RBI guidelines.

8. Legal & Compliance Must-Dos

1️⃣ Game Classification: Secure a legal opinion certifying your game as "skill-based" (per Supreme Court precedents on Rummy/Fantasy Sports). State laws vary—avoid operations in Telangana/Andhra Pradesh where bans exist.

2️⃣ KYC/Anti-Fraud: Implement PAN verification + OTP authentication to comply with AML norms. Tools like Signzy/DigiLocker help automate this.

3️⃣ GST & TDS: Deduct 30% TDS on winnings >₹10k under Section 194B of Income Tax Act; charge 28% GST on platform fees post-Amendment Act 2023.

Workarounds for Banking Roadblocks 🚧

Many banks block transactions labeled "gaming." Mitigate this by:

  • Using vague descriptors like "entertainment services" in transaction remarks (risky; consult legal experts).
deekpay 0 Comments