Best Payment Gateways for Shopify in India (Razorpay, PayU, Cashfree & More)

Choosing a Shopify payment gateway in India comes down to five things: which payment methods it supports (UPI, cards, net banking, wallets, EMI), whether it accepts international cards, its fees, how fast it settles money to your bank, and how smoothly it works with Shopify’s checkout. Most Indian stores use one main gateway plus cash on delivery.

Quick Summary: Executive Takeaways

• Popular Shopify gateways for Indian stores include Razorpay, PayU and Cashfree, with PayPal often added for international buyers.
• UPI support is essential; most Indian shoppers expect it.
• Fees are set by each provider and vary by payment method. Always compare current pricing pages.
• Shopify may charge its own transaction fee on third-party gateway orders, lower on higher plans.
• COD needs controls: verification and prepaid nudges reduce returns-to-origin.
• Test the full checkout on mobile before launch.

Introduction: Why Your Payment Gateway Choice Matters

A payment gateway is the service that securely collects a customer’s payment and transfers the money to your bank account. In Shopify, the gateway appears as a payment option at checkout.

This guide is written by the Lazapi team, a Shopify development agency with locations in Kozhikode (Kerala), Bangalore and the UAE. On Indian store launches, payment setup is the step most likely to cause a delay, usually because KYC documents or website policies aren’t ready when the gateway reviews the account.

Shopify Payment Gateway India: How the Options Compare

The major gateways offer similar core features; the differences are in onboarding, international card support, settlement options and dashboard tools. Use this table as a checklist, and confirm details on each provider’s site because offerings change.

Razorpay

Razorpay is an Indian payment gateway that integrates with Shopify and supports UPI, cards, net banking and wallets. It’s widely used by Indian D2C brands. Check current rates on Razorpay’s pricing page and its Shopify integration documentation.

PayU

PayU is a payment provider with a long presence in India and a Shopify integration. Compare its methods, international card support and pricing on PayU’s website.

Cashfree

Cashfree Payments is an Indian gateway known for payments and payouts products, with a Shopify integration. Check its Shopify docs and pricing page for current details.

PayPal

PayPal is mainly useful for international customers who prefer to pay with a PayPal account. Many Indian stores add it alongside a domestic gateway rather than as the main option.

Cash on delivery (COD)

Cash on delivery is a manual payment method where the customer pays the courier on delivery. It can increase conversion in India, but unverified COD orders and returns-to-origin (RTO) cost money. Courier COD charges also apply.

Shopify’s Own Transaction Fee

Shopify typically charges a transaction fee on orders paid through third-party gateways, on top of the gateway’s fee, with lower rates on higher plans. This affects which plan makes sense as you grow. Check Shopify’s pricing page and the Help Center for the current details for Indian stores.

How to Choose the Right Shopify Payment Gateway in India

The right gateway is the one that fits your customers, your margins and your cash flow. Instead of picking the most popular name, match the gateway to the way your store actually sells.

Model your real payment mix

A payment mix is the share of orders paid by each method, such as UPI, cards, net banking, wallets and COD. Gateways often price methods differently, so the same headline rate can mean different real costs for two stores. In practice, this looks like a simple spreadsheet:

Multiply each share by its fee and add Shopify’s own transaction fee for third-party gateways. That gives a far more useful comparison than a single “lowest rate” claim.

Think about cash flow

Settlement time is how long it takes for a customer’s payment to reach your bank account. Some providers offer faster settlement options, sometimes at extra cost. For stores that reorder stock often, faster settlement can matter as much as the fee.

Check the checkout experience

Payment pages that load slowly or open confusing pop-ups cost orders, especially on mobile data. Place a test order on a mid-range Android phone and note how many taps it takes to pay by UPI. The gateway with fewer steps often wins, even at a slightly higher fee.

Selling internationally

If you sell to NRIs or overseas customers, check whether international cards need separate activation, which currencies are supported and how currency conversion is shown. Some stores add PayPal mainly for these buyers.

Refunds and chargebacks

A chargeback is when a customer disputes a payment with their bank and the money is pulled back from you. Ask each provider how disputes are handled, what evidence they need and how quickly you must respond. Keep delivery proof and clear product descriptions; both help when a dispute comes in. Also check that refunds issued from Shopify admin flow back through the gateway automatically, so your team isn’t refunding in two places.

Step-by-Step: Setting Up a Payment Gateway on Shopify

1. Prepare KYC documents: business registration, PAN, GST (if applicable), bank details.
2. Publish policies first: refund, shipping, privacy, terms and contact details. Gateways often check these.
3. Create your gateway account and complete KYC.
4. In Shopify admin, go to Settings → Payments and add the gateway’s app or provider.
5. Connect your account using the provider’s instructions.
6. Enable payment methods (UPI, cards, net banking, wallets) in the gateway dashboard.
7. Add COD as a manual payment method if needed, with clear instructions.
8. Place a real test order on mobile, then refund it and check the refund syncs.
9. Check settlement arrives in your bank account as expected.
10. Set up COD controls: order confirmation by WhatsApp or SMS, and prepaid incentives if you choose.

In practice, a good COD rule set looks like this:

IF payment_method = COD AND order_value > your_threshold → require OTP/WhatsApp confirmation
IF customer has previous RTO → disable COD for that customer (via app rules)
Show a small prepaid incentive message on the cart page

Common Pitfalls and Mistakes to Avoid

• Applying before policies are live. Gateway approval can stall.
• Not testing refunds. Make sure refunds made in Shopify reach the customer.
• Too many gateways at checkout. Two or three clear options are easier than six.
• Ignoring international buyers. If you sell to NRIs, check international card support.
• Forgetting COD costs. Factor courier charges and RTO into pricing.
• Comparing headline rates only. Rates differ by method; model your actual mix.

FAQ

Which is the best payment gateway for Shopify in India?

There’s no single best gateway. Razorpay, PayU and Cashfree are popular choices. Compare payment methods, international card support, fees, settlement time and Shopify integration for your business.

Is Shopify Payments available in India?

Indian stores typically use third-party gateways such as Razorpay, PayU or Cashfree. Check Shopify’s Help Center for the current list of payment providers available in India.

Can I offer cash on delivery on Shopify?

Yes. Add COD as a manual payment method. Use apps or workflows to verify COD orders and reduce returns-to-origin.

Can I accept international payments on my Indian Shopify store?

Yes, if your gateway supports international cards, or by adding PayPal. Check each provider’s international payment requirements.

Conclusion and Next Steps

The right Shopify payment gateway in India supports UPI and your customers’ favourite methods, fits your margins, settles quickly and integrates cleanly with Shopify. Most stores do well with one main gateway, optional PayPal and well-controlled COD.

Next steps:

1. Shortlist two gateways and compare them with the table above.
2. Read how much a Shopify store costs in India to factor in fees.
3. Want payments set up and tested for you? See our Shopify store setup service.