Choosing a payment provider for your Shopify store in India

To take online payments on a Shopify store in India, you need a payment provider, often called a payment gateway. Shopify’s own payment service, Shopify Payments, isn’t available in India, so every Indian store connects an outside provider such as Razorpay, Cashfree or PhonePe.

They all do the same basic job. The differences are in approval, fees, how quickly you get your money and how checkout feels on a phone. This guide covers what to compare.

How the fees add up

On every order paid online, two charges apply:

• The provider’s fee. A percentage of each payment, which can differ by payment method (UPI, cards, net banking, wallets). GST is charged on top of it.
• Shopify’s fee for using an outside provider. It depends on your Shopify plan. In January 2026, Shopify’s India pricing page (opens in a new tab) listed 2% on Basic, 1% on Grow and 0.6% on Advanced.

Cash on delivery is different: Shopify treats it as a manual payment, so Shopify’s fee doesn’t apply. Your shipping partner will usually charge for COD instead. Our cash on delivery guide explains how COD works.

Fees change, and providers often offer different rates by business size. Check each provider’s current pricing page, and compare the total you’d pay, not just the headline rate.

What to compare

• Approval. Each provider checks your business before you can go live. They usually ask for identity and business documents and a bank account, and look at your website, including your policy and contact pages. Approval time varies, so apply early.
• Payment methods. UPI matters most for many Indian shoppers. Check cards, net banking, wallets and any pay-later or EMI options you want to offer.
• Settlement time. How many days after a payment the money reaches your bank account. It affects your cash flow more than you might expect.
• Checkout on a phone. Try a test payment on your own phone. Opening the UPI app directly and returning to the store smoothly makes a real difference.
• Refunds and disputes. How refunds are processed, and how the provider handles chargebacks.
• Support. When a payment fails at 10pm on a sale day, how quickly can you reach someone?
• International payments. Only if you sell abroad: check which cards and currencies are supported, and the extra fees.

Razorpay, Cashfree and PhonePe

All three connect to Shopify as payment providers and support the common Indian payment methods. PhonePe, for example, offers a Shopify plugin that you install from your payment settings and sign in to with your PhonePe Business account. Each provider decides whether to approve your business and sets its own fees, limits and terms, so the best choice depends on your business, not on a general ranking.

A practical approach: apply to one or two, compare the rates and settlement terms you are actually offered, and test checkout on a phone before you decide.

Before you apply

• Your store shows real products with prices.
• Shipping, returns, refund and privacy policies are published.
• Your contact details are on the store.
• Your business bank account and documents are ready.

How we help

We can set up any payment provider that supports Shopify, and on a new store we set up the options you’re approved for, including cash on delivery, and test them before launch. The provider’s approval, fees and contract are between you and them.

What to take from it

• Indian Shopify stores use an outside payment provider, because Shopify Payments isn’t available.
• Online payments carry the provider’s fee plus Shopify’s plan-based fee; COD doesn’t carry Shopify’s fee.
• Compare approval, payment methods, settlement time and phone checkout, not just the rate.
• Get your policy pages live before you apply.

Need payments set up or switched? Tell us about your store.