Payment gateways, many of which derived a sizable amount of their revenue from the real-money online gaming industry, will be impacted by the government's sweeping ban on the activity. Industry experts estimate that gaming accounted for 40–50% of some processors and 15%–20% of volumes.
Gaming was high-yielding, not just big in scope. According to an industry insider with knowledge of the company's operations, half of the business for a select few players has vanished overnight.
Due to repeat business and higher MDRs than e-commerce and utilities, real-money gaming was one of the most profitable sectors for payment companies. Insiders anticipate that the shake-up will lead to consolidation now that the segment has been eliminated. "Consolidation will undoubtedly take place. For payment processors, this is a moment akin to demonetization," an individual with knowledge of the situation stated.
According to estimations, the effect is apparent on three fronts. Payout-wise, gaming companies like Dream11, MPL, Winzo, Mycircle11, and others must keep separate bank accounts in order to transfer winnings. These accounts are managed by gateways like Cashfree and Razorpay, which charge fees. Now, that stream is dry.
A Razorpay spokesperson said real-money gaming (RMG) contributes only a negligible share to the company’s total payment volume (TPV) and revenues—around ₹500 crore out of an industry monthly flow of ₹15,000–20,000 crore. “Gaming has been an exciting digital sector, and we’ve supported innovation, but it represents only a fraction of our business,” the spokesperson added, noting Razorpay would explore future collaborations as the industry adapts.
Cashfree also downplayed the impact, stating its merchant portfolio is led by e-commerce, BFSI, travel, and tourism, with gaming firms forming only a small portion of revenues. Easebuzz reported less than 2% exposure to gaming, emphasizing that 50% of its revenues come from BFSI, followed by retail, education, and other core sectors.
Also Read:Gameskraft, Dream11 Opt Out of Legal Fight Over Government Gaming Bill
However, overnight halts in wallet deposits through UPI, cards, and other channels have disrupted PhonePe, Paytm, Razorpay, PayU, and others. Compliance pressures have risen as gateways must block illegal or offshore flows, while intensifying competition is prompting processors and banks to cut prices to attract non-gaming merchants.
According to NPCI data, licensed gaming platforms alone processed 1.6 billion UPI transactions worth ₹41,000 crore between April and July 2025, with Yes Bank holding the largest exposure.
