Comparing Cashfree vs Razorpay for Indian EdTech & SaaS Applications

Launching an online learning platform or SaaS application in India requires navigating rigorous regulatory standards: Reserve Bank of India (RBI) recurring e-Mandates, 18% Goods and Services Tax (GST) under SAC 998431 (Online Education Services), and merchant domain verification.

In this exhaustive 2026 benchmark, we compare India's two leading payment processors — Cashfree Payments and Razorpay — across pricing, developer APIs, webhook reliability, and automated GST invoice generation.

2026 Feature & Fee Comparison Matrix

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Indian Regulatory Compliance: The 18% GST Rule

Under Indian tax legislation, digital educational courses, career masteries, and AI coaching platforms are categorized under:

• Service Accounting Code (SAC):

  TSX

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  998431

  (Higher Education & Online Skill Services)
• GST Rate: 18% Total

Tax Calculation Breakdown

• Intrastate Transactions (Same State as Company HQ):

  • CGST: 9%
  • SGST: 9%
  • Total: 18%
• Interstate Transactions (Customer in a Different State):

  • IGST: 18%

TYPESCRIPT
Learnify Verified Code
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// Production GST Calculation Logic in Learnify AI
export function computeGstBreakdown(basePriceInr: number, customerStateCode: string, merchantStateCode: string = "27") {
  const isIntrastate = customerStateCode === merchantStateCode;
  const gstRate = 0.18;
  const totalTax = Math.round(basePriceInr * gstRate * 100) / 100;
  
  if (isIntrastate) {
    const half = Math.round((totalTax / 2) * 100) / 100;
    return {
      cgstRate: 9,
      cgstAmount: half,
      sgstRate: 9,
      sgstAmount: half,
      igstRate: 0,
      igstAmount: 0,
      totalTax,
      grandTotal: basePriceInr + totalTax
    };
  } else {
    return {
      cgstRate: 0,
      cgstAmount: 0,
      sgstRate: 0,
      sgstAmount: 0,
      igstRate: 18,
      igstAmount: totalTax,
      totalTax,
      grandTotal: basePriceInr + totalTax
    };
  }
}

Securing Webhook Signatures: Critical Best Practice

Never credit course enrollments or update wallet balances without cryptographically verifying the incoming webhook signature. A malicious user can easily spoof an HTTP POST request to your webhook endpoint.

TYPESCRIPT
Learnify Verified Code
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import crypto from "crypto";

export function verifyCashfreeWebhookSignature(
  rawBody: string,
  receivedSignature: string,
  timestamp: string,
  secretKey: string
): boolean {
  // Cashfree signature verification algorithm
  const data = timestamp + rawBody;
  const expectedSignature = crypto
    .createHmac("sha256", secretKey)
    .update(data)
    .digest("base64");

  return crypto.timingSafeEqual(
    Buffer.from(receivedSignature),
    Buffer.from(expectedSignature)
  );
}

The Verdict: Which Gateway Should You Choose?

• Choose Cashfree if: You want lower transaction MDR fees (1.9%), high-volume automated creator payouts, and transparent recurring subscription billing with fast domain approval.
• Choose Razorpay if: You want a ubiquitous checkout experience that almost every Indian consumer recognizes, or need out-of-the-box international card processing on day one.
• The Ideal Architecture: Implement Cashfree as the primary gateway for Indian subscriptions and creator earnings, with Razorpay as a resilient secondary payment option.