Executive Summary & The Verdict at a Glance

For any Sri Lankan business entering into the digital marketplace, the choice of a payment gateway is a foundational strategic decision, directly influencing cash flow, customer trust, and operational efficiency. The landscape is dominated by two homegrown innovators: Payhere and WEBXPAY. While both provide the essential service of processing online payments, they operate on fundamentally differently.

Payhere has established itself as the champion of accessibility and developer-friendliness. It offers an exceptionally low barrier to entry with its free starter plan, a transparent tiered pricing model, and a remarkably open, well-documented ecosystem of APIs and SDKs. So it positions as the default choice for startups, solopreneurs, and tech-first businesses that prioritize rapid, self-service onboarding and deep custom integration capabilities.

Conversely, WEBXPAY’score strength lies in online and offline payments, Strong history of data security and  industry-leading T+1 (next business day) settlement cycle, a critical factor for businesses where cash flow is paramount. This makes WEBXPAY the more strategic partner for established Small to Medium-Sized Enterprises (SMEs), retailers with a physical presence, and high-volume businesses aiming to optimize financial operations.

The decision is not a simply which is superior, but which is the right strategic fit for your business. Our evidence-based analysis necessary for Sri Lankan businesses to make that critical choice.

The Tool Audit Scorecard: Payhere vs. WEBXPAY (2025)

Criteria	Payhere Score (out of 10)	WEBXPAY Score (out of 10)	Summary Justification
Onboarding & Ease of Use	9.2/10	8.5/10	Payhere offers a faster, fully-online, self-service setup ideal for startups. WEBXPAY’s process is more intricate, involving credit reviews, but offers more guided support for less tech-savvy SMEs.
Pricing & Value for Money	9.0/10	8.8/10	Payhere’s transparent tiered model is simple and highly accessible, with a free entry point. WEBXPAY’s volume-based pricing offers better rates for high-turnover businesses but is more complex.
Core Business Features	8.8/10	9.3/10	Both offer robust core tools. WEBXPAY takes the lead with its powerful omnichannel (XPOS) capabilities and integrated installment plans (XSPLIT), creating a more complete commerce ecosystem.
Advanced Features	8.5/10	9.0/10	Both provide essential advanced features like recurring billing and tokenization. WEBXPAY’s broader suite, including supply chain finance tools (XSUPPLIER), gives it a slight edge for larger enterprises.
Developer Experience	9.5/10	8.0/10	Payhere is the clear winner with its extensive, publicly accessible, and well-documented APIs and SDKs for a wide range of modern platforms. WEBXPAY’s resources are less transparent pre-engagement.
Security, Trust & Compliance	8.0/10	9.0/10	Both are Central Bank approved and compliant with major standards. WEBXPAY has a clean public record. Payhere’s score is impacted by a significant, albeit well-managed, data breach in 2022.
Customer Support	8.7/10	8.5/10	Both platforms receive generally positive user feedback for support. Payhere is often praised for its responsive and helpful team via multiple channels. WEBXPAY offers 24/7 support, crucial for larger operations.
Settlement Speed	7.0/10	9.8/10	This is WEBXPAY’s defining advantage. Its T+1 settlement cycle is a massive cash flow benefit over Payhere’s significantly longer 3-5 business day period.
Overall Score	8.6/10	8.9/10	Payhere is an outstanding, accessible choice for online-only startups and developers. WEBXPAY is the more powerful, strategic partner for scaling SMEs and omnichannel retailers due to its superior ecosystem and cash flow management.

The Digital Payment Crossroads: Choosing Your Financial Getway in Sri Lanka

The Sri Lankan economy, where Micro, Small, and Medium Enterprises (MSMEs) account for over 90% of businesses and 52% of the GDP, the adaptation to digital payment systems is prerequisite for survival and growth. A payment gateway serves the secure bridge that connects a merchant’s website, their customer, and the financial institutions that process the transaction. Choosing the right gateway is therefore a critical business decision, impacting everything from customer conversion rates and operational security to daily cash flow and the potential for international expansion.

For years, the Sri Lankan market was underserved costly, cumbersome, and technically challenging payment solutions offered directly by banks. This environment created a significant barrier to entry for smaller players. In response to this challenge, two local fintech companies emerged as the definitive leaders: Payhere and WEBXPAY.

Payhere, launched by the founder of the widely trusted Bhasha and Helakuru brands, entered the market with a clear mission: to create a “comprehensive solution for online payment barriers in Sri Lanka” by offering convenient and affordable facilities. It gained traction quickly as a user-friendly and very accessible platform, now serving over 5,000 Sri Lankan businesses.

WEBXPAY, founded in 2015, positioned itself as a proudly “Made in Sri Lanka” innovator with a broader and more ambitious vision to “unlock wealth for all”. Its strategy extends beyond simple online payments to create a holistic ecosystem that serves diverse market segments, from individual consumers (B2C) and business networks (B2B) to government services (C2G).

Our analysis adheres to the rigorous, evidence-based methodology of “The Tool Audit.” The analysis is built on meticulous review of official company documentation, published pricing structures, developer resources, and a wide array of independent user feedback and industry reports. This ensures our findings best payment gateway for Sri Lankan business.

Onboarding & Activation.

Payhere and WEBXPAY present two distinct paths to activation, each with clear advantages depending on the business’s needs and technical proficiency.

Payhere’s Streamlined, Digital-First Approach

Payhere has engineered an onboarding process that prioritizes speed and self-service. The entire procedure is conducted online, eliminating the need for physical paperwork.

The process follows a clear, logical sequence:

1. Account Creation: A prospective user signs up for a live PayHere account online.
2. KYC (Know Your Customer) Submission: The user completes a digital form with essential details, including personal information, business details (a registered business in Sri Lanka is a prerequisite), and ownership information.
3. Integration & Policy Details: The merchant specifies their integration type (e.g., website) and provides links to their business’s Return Policy, Privacy Policy, and Terms & Conditions.
4. Digital Agreement: The process concludes with the signing of a digital merchant agreement.

A significant advantage of Payhere’s system is ability to utilize a separate sandbox account simultaneously. By this parallel workflow developers can begin integration and testing Payhere immediately, without having to wait for the live merchant account to be fully approved.

WEBXPAY’s Guided, Risk-Averse Process

WEBXPAY takes a more deliberate and hands-on approach to onboarding, reflecting its focus on building a stable and secure merchant ecosystem. The company describes its process as “intricate,” involving an “extensive credit review” for every business that applies. This acts as a robust screening mechanism designed to minimize potential disputes and ensure the legitimacy of its merchants from the outset.

While this may introduce a longer lead time compared to Payhere’s instant setup, it is complemented by a more supportive framework. WEBXPAY leverages “AI-powered onboarding and support” to simplify the process and remove barriers for merchants.

Furthermore, initiatives such as their partnership with the Australian Government to onboard and train MSMEs suggest a willingness to provide direct guidance and support, which can be invaluable for business owners who are less familiar with digital platforms.

These contrasting onboarding methodologies are not accidental; they are a direct reflection of each company’s target market. Payhere’s frictionless, self-service model is perfectly calibrated for the modern freelancer, digital creator, or startup founder who values speed and autonomy. They are empowered to get up and running in minutes without extensive oversight.

WEBXPAY’s more thorough, guided process is better suited for established SMEs and traditional businesses transitioning to digital. The initial credit review and support framework provide a layer of assurance and partnership, signaling a focus on long-term, sustainable relationships rather than just rapid acquisition. The choice for a business owner comes down to a simple trade-off: immediate activation versus a more comprehensive, guided setup.

The Business Toolkit: Main Features Breakdown

Beyond simply processing a transaction, a modern payment gateway must function as a versatile financial toolkit, equipping a business with the means to manage sales, retain customers, and scale operations. Both Payhere and WEBXPAY offer a strong core features, but their strategic differences become apparent when examining their advanced and specialized offerings.

Core Tools: The Essential Foundations

Both platforms have mastered the fundamentals required by nearly every online business in Sri Lanka.

• Payment Links: For businesses operating primarily on social media, messaging apps, or through email marketing, the ability to generate a direct payment link is essential. Both gateways offer this feature, allowing merchants to accept payments without needing an own full e-commerce website. This tool is frequently cited by Payhere users as a favorite for its simplicity and effectiveness.
• Invoicing: Both platforms provide tools to create and send digital invoices, streamlining the billing process for service-based businesses and B2B transactions.
• E-commerce Plugins: Recognizing the dominance of platforms like WordPress, both Payhere and WEBXPAY offer useful plugins for major e-commerce systems, including WooCommerce, Shopify, and Magento. This ensures a straightforward, no-code integration process for the vast majority of online stores.

Advanced & Differentiating Features: Where Strategies Diverge

The true strategic positioning of each gateway is revealed in their advanced feature sets.

• Recurring Billing & Tokenization: Both platforms support subscription payments and automated charging, which are critical for SaaS companies, membership sites, and businesses looking to improve customer convenience with one-click checkouts. Payhere offers a dedicated Recurring API and Charging API for this purpose in PLUS and PREMIUM plans, while WEBXPAY includes tokenization in its higher-tier plans.
• Installment Plans (Buy Now, Pay Later): This is a significant competitive advantage for WEBXPAY and payhere. Through this merchants can offer customers the ability to pay for larger purchases in installments. In a market where affordability can be a major barrier to conversion, this feature is a powerful sales tool, particularly for businesses selling high-value goods like electronics, furniture, or travel packages.
• Omnichannel Capabilities: This is arguably WEBXPAY’s most profound differentiator. While Payhere is an online-first and primarily online-only solution, WEBXPAY has built a unified commerce ecosystem. Its XGATEWAY product handles all online transactions, while its XPOS product provides a modern, in-store point-of-sale solution. This allows a business with both a physical retail location and an e-commerce store to manage all its payments through a single, integrated dashboard. XPOS supports major card payments as well as local QR standards like LankaQR and international ones like UPI and Alipay+.
• Extended Ecosystem: Both companies are expanding beyond core payment processing. Payhere has launched ShopHere, a simple e-commerce platform that allows vendors to quickly create an online shop with built-in payment integration. WEBXPAY’s ecosystem is broader, including specialized products like

XSUPPLIER for supply chain finance and XCOLLECTOR for field agent payment collection, targeting more complex enterprise needs.

The divergence in their feature sets highlights a core strategic choice for businesses. Payhere has perfectly focused toolkit for the world of online commerce. Its offerings are comprehensive for any business that operates exclusively on the web.

WEBXPAY, in designed to break down the barriers between online and offline sales channels.

For a purely digital business, Payhere is perfectly sufficient and less complex. However, for any business with a physical footprint—a retailer, a restaurant, a service provider with a front office—WEBXPAY’s omnichannel ecosystem offers a level of integration and operational unity that Payhere cannot currently match.

The True Cost of a Transaction.

For any business, the cost of accepting payments is a direct line item on the profit and loss statement. Navigating the fee structures of payment gateways can be complex, but a clear understanding is essential for accurate financial planning.

Payhere and WEBXPAY has two different pricing models, making a direct, feature-for-feature comparison insufficient. Payhere uses a transparent, tiered subscription model, while WEBXPAY uses model based on monthly transaction volume.

Payhere’s Transparent Plans

Payhere’s pricing has no setup fees—a significant advantage that removes the initial financial barrier for new businesses .The structure is divided into three distinct plans

• PayHere LITE: This is the entry-level, free plan. It carries no monthly fee, making it a risk-free option for startups and businesses with low transaction volumes. The trade-off is a higher transaction processing fee of 3.30%. This plan is capped at a monthly transaction volume of LKR 200,000.
• PayHere PLUS: Aimed at growing SMEs, this plan costs LKR 3,990 per month. In exchange for the fixed fee, the transaction rate drops to 2.99%. The monthly volume limit is substantially increased to LKR 3,000,000.
• PayHere PREMIUM: For high-volume businesses, this plan costs LKR 9,990 per month and offers the lowest transaction rate of 2.69% with no monthly processing limit.

In addition to these base rates, Payhere applies several surcharges: a 1.0% fee for cross-border foreign currency transactions and a 0.5% fee for premium card brands like American Express, Discover, and Diners Club. Conversely, they offer a discounted rate of 1.99% for payments made via the local HelaPay method.

WEBXPAY’s Volume-Based Model

WEBXPAY’s pricing is more complex. The transaction rates are not tied to a fixed monthly subscription but rather to the business’s monthly processing volume. This model can offer significant savings for high-volume merchants.

The online gateway (XGATEWAY) rates are tiered as follows:

• Starter/Economy Tiers: For businesses processing up to Rs. 25 million per month, the rate for local and foreign Visa/Mastercard transactions is 2.90%.
• Business Tier: For businesses exceeding Rs. 25 million per month, the rate drops to a more competitive 2.50%.
• Free Tier: A free, entry-level package exists but carries a much higher transaction rate of 3.50% for Visa/Mastercard.

WEBXPAY’s fee structure is also more granular across different payment methods. For instance, American Express cards are charged between 3.50% and 3.99%, while LANKAQR transactions are processed at a low 1.00%. JustPay transactions have a complex tiered structure ranging from 1.90% to as high as 6.00% depending on the transaction value. A key additional cost to consider is the one-time

Multi-Currency Activation Fee of LKR 5,000 for businesses on the higher tiers wishing to accept international currencies.

Cost Simulation: Real-World Scenarios

Our following table simulates the monthly payment processing fees for three distinct business archetypes.

Cost Simulation: Payhere vs. WEBXPAY for Different Business Archetypes

Business Archetype	Monthly Revenue (LKR)	Avg. Transaction Mix	Payhere Plan & Total Cost (LKR)	WEBXPAY Plan & Total Cost (LKR)	The Verdict
The Freelancer	150,000	100% Local Visa/MC	LITE Plan: (150,000 * 3.30%) = 4,950	Free Tier: (150,000 * 3.50%) = 5,250	Payhere is more cost-effective. The LITE plan’s lower rate provides a clear advantage at this volume.
The Growing SME	2,000,000	80% Local Visa/MC, 10% Amex, 10% International	PLUS Plan: 3,990 + (1.6M * 2.99%) + (200k * 3.49%) + (200k * 3.99%) = 66,790	Starter Tier: (1.6M * 2.90%) + (200k * 3.75%) + (200k * 2.90%) = 59,700	WEBXPAY is more cost-effective. Its lower base rate for high-volume Visa/MC transactions outweighs Payhere’s monthly fee.
High-Volume Retailer	15,000,000	70% Local Visa/MC, 30% LANKAQR	PREMIUM Plan: 9,990 + (10.5M * 2.69%) + (4.5M * 2.69%) = 413,490	Starter Tier: (10.5M * 2.90%) + (4.5M * 1.00%) = 349,500	WEBXPAY is significantly cheaper. The extremely low 1.00% rate for LANKAQR creates massive savings at scale.

Note: Calculations are based on the latest available pricing .

The simulation clearly demonstrates that Payhere’s LITE plan is the undisputed champion for new and small businesses, offering the lowest cost of entry. However, as a business scales, WEBXPAY’s volume-based discounts, particularly for popular local payment methods like LANKAQR, create a compelling financial incentive to switch, making it the more economical choice for established, high-turnover operations.

For the Technologists: A Developer Experience Audit

For businesses with in-house technical teams or those planning complex, custom integrations, the quality and accessibility of a payment gateway’s developer resources are paramount.

A well-documented API and a robust set of Software Development Kits (SDKs) can mean the difference between a seamless, rapid integration and a protracted, frustrating development cycle. In this domain, Payhere and WEBXPAY exhibit a stark contrast in their approach to their developer communities.

Payhere’s Open and Comprehensive Developer Ecosystem

Payhere has adopted a developer-first strategy, characterized by transparency and a wealth of publicly accessible resources.

• Documentation: Payhere maintains two primary resource hubs: a comprehensive knowledge base (support.payhere.lk) for general questions and plugin setups, and a dedicated developer portal (developers.payhere.co) for technical documentation. The documentation is structured, clear, and provides the necessary details for integration.
• APIs: The platform exposes an extensive and mature suite of APIs, demonstrating its flexibility. This includes a Checkout API for one-time payments, a Recurring API for subscriptions, a Preapproval API for future charges, and various management APIs for Retrieval, Refunds, Authorization, and Capture. This granular control allows for the development of highly customized payment flows.
• SDKs and Plugins: Payhere’s commitment to developers is most evident in its broad support for modern development environments. It provides official SDKs for JavaScript, Android, iOS, React Native, and Flutter, covering the majority of web and mobile application stacks. This significantly reduces the boilerplate code developers need to write. For standard e-commerce sites, a wide array of plugins for platforms like

WooCommerce, Shopify, Magento, and OpenCart ensures easy, no-code integration.

WEBXPAY’s “Developer-Friendly” but Guarded Approach

WEBXPAY markets its platform as “developer-friendly” and highlights its “seamless integrations” and “developer kit” that offers “robust, step-by-step docs”. While they do offer APIs and SDKs, their approach to documentation is less open than Payhere’s.

• Documentation: Unlike Payhere, detailed API reference documentation and technical specifications are not readily available for public inspection in the provided research. Access to the full “Developer Kit” appears to be a post-engagement step, making it difficult for technical teams to perform a deep evaluation upfront.
• APIs and SDKs: While WEBXPAY states it has APIs and mobile SDKs, the specific details, endpoints, and capabilities are not as clearly enumerated in public-facing materials. There is evidence of community-driven packages for frameworks like Laravel and NestJS, indicating that integration is certainly possible, but the official resources are less transparent.

This difference in approach creates a clear distinction. Payhere operates with an open-ecosystem. By making their documentation, API references, and SDKs public, they invite developers to explore, test, and build with confidence. This transparency is invaluable for a tech-first business where the development team’s assessment is a critical part of the decision-making process. They can validate that the gateway’s capabilities align with their product roadmap before signing any agreements.

WEBXPAY’s approach is more akin to a walled garden. While their tools are undoubtedly capable, especially for standard plugin-based integrations, the lack of public-facing technical detail requires a greater leap of faith from businesses with custom development needs. This model may be perfectly suitable for merchants who prefer a more guided integration process led by the provider’s support team, but it presents a hurdle for those who prioritize independent technical evaluation. For the developer, Payhere’s transparency makes it the unequivocally superior choice for assessment and custom implementation.

Security, Support, and Settlements: The Pillars of Trust

The long-term viability of a payment gateway partnership rests on three pillars of trust: the security of its platform, the responsiveness of its support, and the reliability of its financial settlements. These operational factors have a direct impact on a business’s reputation, its ability to resolve issues, and its fundamental cash flow.

Security and Compliance

Both Payhere and WEBXPAY operate under the supervision of the Central Bank of Sri Lanka (CBSL), providing a baseline of regulatory oversight. Both also claim adherence to critical international security standards, including the Payment Card Industry Data Security Standard (PCI DSS) and ISO/IEC 27001, which govern the secure handling of cardholder data.

In March 2022, Payhere suffered a major data breach that exposed over 1.5 million user records, including email addresses, contact information, purchase histories, and partially obfuscated card data (the first six and last four digits).

To its credit, Payhere addressed the incident with public transparency, publishing a blog post detailing the event, their collaboration with Sri Lanka CERT, and the steps taken to secure the platform. Subsequent reports confirmed that full card numbers and CVV codes were not compromised. Despite this responsible handling, the incident remains a permanent black mark of Payhere’s security history.

WEBXPAY, by contrast, does not have a similar publicly documented breach, giving it a stronger record in this specific area.

Customer Support

The quality of customer support becomes paramount when transactions fail or technical issues arise.

• Payhere offers multiple support channels, including live chat, email, and direct phone lines. Merchant testimonials frequently praise their support team as being “easily reachable,” “always available,” and “always helpful”. Google Business Profile also reviews echo this sentiment, with users highlighting “great customer support” and prompt issue resolution.
• WEBXPAY promotes its “24/7 Merchant Support” as a key feature, a critical service for businesses that operate around the clock. They provide official email and phone contacts for support inquiries. Their team is described as “supportive and accessible 24 hours,” particularly in their efforts to assist merchants during challenging periods.

Both providers appear to offer reliable and accessible support, which is a positive sign for the local fintech industry.

Settlement Speed

The time it takes for money from a customer’s payment to arrive in a merchant’s bank account—known as the settlement time—is a critical factor for managing business cash flow. On this metric, there is a stark and decisive difference between the two gateways.

• WEBXPAY has built its reputation on T+1 (Transaction Day + 1) settlements. This means merchants can expect to receive their funds on the next business day. This rapid access to capital is a very high advantage, allowing businesses to pay suppliers, manage inventory, and invest in growth without delay.
• Payhere’s settlement cycle is T+2,but as cited in multiple sources it takes 2 to 5 business days.While reliable, this delay means a business’s revenue is held in limbo for the better part of a week, which can create significant cash flow constraints, especially for smaller businesses with tight margins.

This operational difference is crucial for any business owner. WEBXPAY offers a vastly superior operational advantage with its T+1 settlement, directly improving a company’s financial agility. However, a business must weigh this benefit against Payhere’s past security incident. The decision forces a choice between optimizing for cash flow with WEBXPAY or a platform that is slower and has been through the crucible of a public security challenge and has since fortified its systems.

For a cash-strapped SME, the allure of next-day funds may be irresistible. But for a larger enterprise where brand trust and data security are the absolute highest priorities WEBXPAY is a good considerable choice.

Final Verdict & Authoritative Recommendation

After long analysis of every critical facet—from onboarding and features to pricing and developer experience—it is clear that the choice between Payhere and WEBXPAY is not a matter of good versus bad, but of strategic alignment. Each platform has been purpose-built to serve a different segment of the Sri Lankan business landscape, and the optimal choice depends entirely on a company’s specific operational model, scale, and future ambitions.

Summary of Findings

• Onboarding and Accessibility: Payhere offers a superior, frictionless, self-service onboarding experience that is ideal for getting a new online venture started in minutes. WEBXPAY’s process is more measured and suitable for established businesses that appreciate a guided, risk-assessed setup.
• Features and Ecosystem: While both cover the essentials, WEBXPAY’s platform is strategically broader. Its integrated omnichannel capabilities (XPOS for in-store payments) and powerful conversion tools (XSPLIT for installments) create a unified commerce ecosystem that Payhere, in its current online-only form, cannot match.
• Pricing Model: Payhere’s transparent, tiered model with a free entry point is unbeatable for startups and low-volume businesses. WEBXPAY’s volume-based pricing, however, becomes significantly more cost-effective as a business scales, rewarding high turnover with lower transaction rates.
• Developer Experience: Payhere stands as the unequivocal leader for technical teams. Its open, extensive, and well-documented suite of APIs and SDKs empowers deep, custom integrations and facilitates thorough pre-commitment evaluation.
• Trust and Operations: WEBXPAY holds two key operational advantages: a clean public security record and a game-changing T+1 settlement cycle that dramatically improves business cash flow. Payhere’s reputation is impacted by a past data breach, and its 2-5 day settlement period is a significant operational drawback.

Authoritative Recommendation

Based on our comprehensive audit, the following recommendations can be provided:

We confidently recommend Payhere for:

• Startups, Solopreneurs, and Social Sellers: The LITE plan’s zero monthly fee and simple payment links provide the most accessible, risk-free entry point into the digital economy.
• Developers and Tech-First Businesses: The transparent, comprehensive, and publicly available API and SDK ecosystem is vastly superior for technical evaluation and custom development projects. For any business building a unique platform or mobile app, Payhere’s developer resources are the clear choice.
• Digital Product and SaaS Companies: The robust Recurring Billing API and advanced subscription management tools are perfectly tailored for business models that rely on automated, repeating payments.

We confidently recommend WEBXPAY for:

• Established Retail and Service SMEs: The unified XGATEWAY (online) and XPOS (offline) system is the definitive solution for any business with both a physical and digital presence. It offers a single, coherent view of all transactions, simplifying reconciliation and management.
• Businesses Prioritizing Cash Flow: The T+1 settlement cycle is WEBXPAY’s single most compelling feature.³ For any business—from a growing SME to a large enterprise—where rapid access to working capital is a strategic priority, this feature alone can justify choosing WEBXPAY.
• High-Ticket E-commerce Stores: The integrated XSPLIT installment plan feature is a powerful tool to increase conversion rates on higher-priced items, directly boosting revenue by making purchases more affordable for customers.

Payhere is the agile, accessible, and developer-centric choice for the modern online-only venture. WEBXPAY is the powerful, integrated, and operationally efficient choice for the scaling omnichannel business. This audit provides the data and analysis for Sri Lanka’s entrepreneurs to choose not just a processor, but a true financial partner for their growth journey.