Cashfree Payments launches a zero-fee promotion for new merchants on domestic transactions, aiming to attract small businesses during India’s busiest retail period and boost its SMB client base by the end of 2027.
Cashfree Payments is trying to turn the busiest stretch of the retail calendar into a customer-acquisition push for small firms, offering new merchants zero payment gateway fees on the first Rs20 lakh of gross merchandise value until 31 March 2027. The company says the promotion is aimed at businesses that are about to face the intense sales pressure of the festive season, when order values rise sharply and a large share of annual revenue can be made or lost in a matter of weeks.
The timing matters because the first sales season is often the hardest for a new seller to survive. Cashfree says its own data shows average order values for small businesses can nearly triple during festive months, while transaction volumes across the platform can run about 11 times higher than a normal day. The company also argues that settlement speed, uptime and onboarding delays are critical at that point, because even a short lag in getting live or paid can crimp cash flow for firms already spending heavily on stock, marketing and discounts.
According to Cashfree’s pricing page, the waiver applies only to domestic transactions and covers cards, UPI and net banking, with international payments excluded. The company also says the offer is available to new merchants who sign up between 21 July 2026 and 31 March 2027. Business Standard reported that the payments firm is using the move to court small and medium-sized businesses ahead of the festive period, while also pursuing a longer-term goal of doubling its SMB base to 2 million by the end of fiscal 2027.
For Cashfree, the bet is that removing early transaction costs will help merchants keep more margin for inventory, advertising and fulfilment, while also making the platform stickier at the exact moment businesses choose their payment partner. The company says its SMB segment gross transaction value more than doubled in fiscal 2026 and that its active merchant base rose 50% year on year. Chief executive Akash Sinha said the first stage of a business is the hardest, adding that the festive season gives new sellers their best shot at reaching the Rs20 lakh milestone.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
