Ahead of the festive season, AI-native fintech company Cashfree Payments has announced a major initiative aimed at supporting small businesses and direct-to-consumer (D2C) brands by waiving payment gateway fees on the first ₹20 lakh of sales for newly onboarded merchants. The offer, which is valid until March 31, 2027, is designed to help entrepreneurs reduce their initial operating costs, improve profitability and build a stronger online presence during one of the busiest shopping periods of the year.
For many small businesses, payment gateway charges add to the cost of running an online store, especially during the early stages of growth. By eliminating these charges on the first ₹20 lakh of sales, Cashfree Payments hopes to give new merchants greater financial flexibility. The company believes that the savings can be redirected towards key business priorities such as purchasing inventory, investing in marketing campaigns, improving customer acquisition and expanding operations.
Cashfree Payments also said the onboarding process for new merchants can be completed within minutes, allowing businesses to start accepting digital payments quickly. In addition, merchants will receive next-day settlements, helping them maintain healthy cash flow during the high-demand festive period. To further support businesses, the company will provide a dedicated account manager who will assist merchants with payment-related queries and operational needs throughout the season.
Commenting on the initiative, Akash Sinha, Co-founder and CEO of Cashfree Payments, said the festive season is the most important sales period for many small businesses in India. He noted that nearly 40% of an SMB or D2C business’s annual sales are generated during this time. According to Sinha, reducing payment processing costs will help merchants make the most of the festive demand while accelerating their business growth.
He further explained that most merchants who sign up with Cashfree Payments before the festive season typically record sales of less than ₹20 lakh during this period. As a result, the offer is expected to cover the payment gateway fees for the majority of their festive business, enabling them to retain more revenue and reinvest it into growing their business.
The company believes the initiative will strengthen India’s growing digital commerce ecosystem by lowering entry barriers for entrepreneurs who are launching their online businesses. With e-commerce continuing to expand across the country, reducing transaction costs can provide a meaningful advantage to startups and small businesses looking to compete in the digital marketplace.
Cashfree Payments described the offer as one of the most attractive currently available in India’s payment gateway industry. By removing payment gateway charges during the critical early growth phase, the company aims to provide new businesses with a stronger foundation and help them capitalize on festive season demand.
Subscribe Deshwale on YouTube
