Key takeaways
- Shopify Payments is not available for stores based in India, so you need a third-party payment gateway.
- Popular options include Razorpay, PayU, Cashfree, CCAvenue and PhonePe, all supporting UPI, cards, net banking and wallets.
- You pay the gateway's own fees, plus Shopify's surcharge for third-party gateways: 2%, 1% or 0.6% depending on your plan.
- Cash on delivery is set up as a manual payment method and still matters for many Indian shoppers.
- Choose on success rates, UPI experience, settlement times and support — not only on headline fees.
If your Shopify store is registered in India, you won't see Shopify Payments in your settings: it isn't offered to Indian businesses. Instead, you connect a third-party payment gateway. The good news is that India has some of the best gateways in the world, with UPI making checkout fast and cheap for shoppers.
Payment gateways that work with Shopify in India
- Razorpay: One of the most widely used gateways in India, with UPI, cards, net banking, wallets and EMI options.
- PayU: A long-established gateway with broad payment method coverage and EMI support.
- Cashfree: Known for fast settlements and a strong UPI experience.
- CCAvenue: One of India's oldest gateways, with a very wide range of payment options.
- PhonePe: A UPI-first gateway from India's largest UPI app.
Each gateway has its own onboarding: KYC documents, business verification and a review of your website, including policy pages for refunds, shipping and privacy. Have those pages ready before you apply.
What it costs
There are two layers of fees. First, the gateway's own transaction fee, which varies by payment method — UPI is usually cheapest, international cards and some wallets cost more — and by the pricing you negotiate. Second, because you are not using Shopify Payments, Shopify adds a surcharge on each order: 2% on Basic, 1% on Grow and 0.6% on Advanced, and less on Shopify Plus. GST applies to these fees.
Gateway pricing changes often and many offer custom rates at higher volumes, so compare current fees directly with each provider. For a growing store, the Shopify surcharge is often the bigger cost — one reason high-volume Indian brands consider Shopify Plus. See our Shopify vs Shopify Plus comparison.
How to set up a gateway on Shopify
- Create your gateway account: Sign up, complete KYC and get your account activated for live payments.
- Install the gateway's Shopify app: Most gateways connect through an app listed in Shopify's payments settings.
- Connect and configure: In Settings → Payments, add the provider, enter your credentials and choose which payment methods to show.
- Place test orders: Test UPI, cards and net banking, including failed payments and refunds, before you launch.
Cash on delivery
Cash on delivery (COD) remains important for many Indian shoppers, especially for first orders. In Shopify, add it as a manual payment method. Because COD increases return-to-origin rates, many brands add a small COD fee, confirm COD orders by phone or WhatsApp, or offer a discount for paying online.
One-click and third-party checkouts
Indian brands often use one-click checkout providers — such as Razorpay Magic Checkout, GoKwik or Shopflo — that prefill addresses and push prepaid payments. They can lift conversion, but they change how checkout works, so review how each one integrates with Shopify's checkout, your discounts and your analytics before switching.
How to choose
- Payment success rate, especially for UPI — failed payments are lost orders.
- Settlement time and how quickly refunds reach customers.
- Support quality when payments fail at peak times.
- Fees at your expected volume, including international cards if you sell abroad.
Frequently asked questions
Does Shopify have its own payment gateway in India?
No. Shopify Payments isn't available to Indian businesses, so stores connect a third-party gateway such as Razorpay, PayU, Cashfree, CCAvenue or PhonePe.
Can I accept UPI on Shopify?
Yes. Indian payment gateways support UPI alongside cards, net banking and wallets.
Can I offer cash on delivery on Shopify in India?
Yes. Add cash on delivery as a manual payment method in Shopify's payment settings.
Setting up payments, COD rules and checkout for an Indian store is part of every build our Shopify store development team delivers.
Filed under
Jay Patel