Choosing a payment gateway for your Shopify store in India

Your payment gateway is the part of your store that actually collects the money. Get it right and customers pay in a few taps. Get it wrong and you lose sales at the very last step.

Here is what you need to know to choose well.

What a payment gateway does

When a customer checks out, the payment gateway securely collects their payment (by UPI, card, netbanking, wallet or EMI), checks it has gone through, and then transfers the money to your bank account, minus a small fee. It also handles refunds when you need to issue them.

The popular options in India

The gateways Indian brands most commonly use with Shopify and WooCommerce include:

• Razorpay: very widely used, with a smooth checkout and a broad range of payment methods.
• Cashfree Payments: popular for its fast settlements and competitive pricing.
• PayU: a long-established option used by many large Indian businesses.
• PhonePe PG, Paytm and others: worth considering, especially if your customers already use these apps heavily.

On Shopify, check which gateways are currently supported for India in your admin under Settings → Payments, as the list is updated from time to time.

What to compare

1. Payment methods

Make sure the gateway supports everything your customers use: UPI (essential in India), debit and credit cards, netbanking, popular wallets and, if you sell higher-priced products, EMI and pay-later options.

2. Fees

Most gateways charge a percentage of each transaction, and the rate can vary by payment method. International cards and some EMI options usually cost more. Some gateways offer lower rates as your volume grows. Always check each provider’s current pricing page, as rates change.

On Shopify, also check whether your plan adds a transaction fee when you use a third-party gateway.

3. Settlement time

How quickly does the money reach your bank account? Standard settlement often takes a couple of working days, and some gateways offer faster settlement for an extra fee. If cash flow is tight, this matters.

4. Checkout experience

A clean, fast checkout that works smoothly on mobile makes a real difference to conversions. Some gateways offer one-click or saved-details checkout that can noticeably reduce drop-offs.

5. Onboarding and documents

Gateways must verify your business before activating payments. You will typically need things like PAN, bank account details, business registration or GST details (if applicable) and live policy pages on your website. Approval can take a few days, so start early.

6. Support

When a payment fails on a busy sale day, you want quick answers. Look at how easy it is to reach support and how well they respond.

Do not forget cash on delivery

COD is still hugely popular in India, especially outside the big cities. It can increase conversions, but it also brings more returns and delayed cash flow.

Many brands handle this by:

• Adding a small COD fee
• Offering COD only above a minimum order value
• Giving a discount for prepaid orders
• Confirming COD orders by WhatsApp before shipping

Policy pages matter

Payment gateways review your website before approving you. Make sure your store clearly shows your shipping policy, refund and return policy, privacy policy, terms and contact details. Missing pages are one of the most common reasons for delays.

Our recommendation

For most growing brands, a well-known gateway with strong UPI support, a smooth mobile checkout and responsive support is the right choice. Getting set up properly the first time, with the right documents and policy pages, saves days of back-and-forth.

When we build your store, we set up and test your payment gateway end to end, so you are ready to take payments on day one. Talk to us about your store.