Shopify Payment Gateway
Integration in India
Razorpay, PayU, CCAvenue
To integrate a payment gateway on Shopify in India: (1) Install the official payment gateway app (Razorpay, PayU, or Cashfree) from the Shopify App Store. (2) Create a live merchant account with your chosen gateway and complete KYC. (3) Connect your live API keys in the Shopify app settings. (4) Configure webhooks for order confirmation. (5) Enable UPI, cards, net banking, and COD as required. (6) Test the full payment and refund flow with a real transaction before going live. Razorpay is the most recommended gateway for new Indian Shopify stores in 2026.
Shopify Payment Gateway Integration India — Key Points at a Glance
- Top gateways for India — Razorpay (recommended), PayU, CCAvenue, Cashfree, Instamojo
- Razorpay transaction fee — 2% per transaction (domestic cards, UPI, net banking)
- All gateways support — UPI, cards, net banking, wallets, EMI, and COD
- Webhook setup is mandatory — prevents lost orders when customers close the browser
- COD accounts for 20–40% of Indian eCommerce orders — must be configured
- GST-compliant checkout — configure IGST/CGST/SGST in Shopify tax settings
- Always test with a real transaction — never launch in test mode
- Shopify Payments — not available in India; third-party gateway required
Why Shopify Payment Gateway Integration in India Requires Special Attention
Shopify payment gateway integration in India is fundamentally different from Western markets because Shopify Payments — the platform's native checkout solution — is not available in India. Every Indian Shopify store must integrate a third-party payment gateway such as Razorpay, PayU, CCAvenue, or Cashfree. The right shopify development company in Chennai will handle this integration completely — covering API setup, webhook configuration, COD, UPI, and full payment cycle testing before handover.
A poorly configured payment gateway is the single most expensive mistake on any Indian Shopify store. Silent payment failures — where customers complete the payment flow but the order is never created in Shopify due to a misconfigured webhook — are invisible to store owners until they notice a revenue discrepancy. In our experience at BYB Traction, webhook misconfiguration alone accounts for 5–15% of lost orders on poorly built Indian Shopify stores in the first week after launch.
This guide walks through everything you need to know about Shopify payment gateway integration in India — which gateway to choose, how to set it up correctly, how to configure webhooks, how to enable COD and UPI, how to set up GST-compliant checkout, and how to test every payment method before your store goes live.
Why Shopify Payments Is Not Available in India
Shopify Payments — the built-in payment solution that eliminates transaction fees on qualifying Shopify plans — is available in over 20 countries but is not currently available in India due to RBI (Reserve Bank of India) regulations governing payment aggregators and cross-border settlement. Indian merchants must use a third-party payment gateway that is RBI-regulated and compliant with Indian financial laws.
When you use a third-party gateway in India, Shopify charges an additional transaction fee on top of the gateway fees on Basic and Standard Shopify plans. This can be avoided on the Advanced Shopify and Shopify Plus plans. Always verify the current transaction fee structure on Shopify's official pricing page as these rates change periodically.
The absence of Shopify Payments in India does not limit your payment options. Razorpay, PayU, and Cashfree all support UPI, credit and debit cards, net banking, EMI, wallets, and COD — covering 100% of Indian payment preferences. The integration process takes 1–2 hours once your merchant account is approved and KYC is complete.
Best Payment Gateways for Shopify in India — 2026 Comparison
There are five primary payment gateway options for Indian Shopify stores. Each has different transaction fees, approval timelines, supported payment methods, and integration quality. Here is a complete comparison:
- Official Shopify App Store app — best integration quality
- UPI, cards, net banking, wallets, EMI, COD
- Instant account activation for most businesses
- Excellent webhook reliability — low missed order rate
- Razorpay dashboard integrates with Shopify orders
- Best developer documentation for Indian Shopify builds
- International cards and currencies supported
- Official Shopify App — well maintained
- UPI, cards, net banking, wallets, EMI, COD
- Strong enterprise client base in India
- PayU LazyPay BNPL (Buy Now Pay Later) option
- Competitive rates for high-volume merchants
- Good dashboard and settlement reports
- Shopify App available — growing Indian user base
- UPI, cards, net banking, wallets, EMI
- Lowest domestic transaction fee among major gateways
- Fast settlements — T+1 for most transactions
- Good for high-volume stores sensitive to fees
- Shopify integration available
- Widest card network support in India
- Supports 200+ payment options
- Strong for B2B and enterprise stores
- Longer approval process — 3–7 business days
For most new Indian Shopify stores in 2026, Razorpay is the best choice — it has the best Shopify App Store integration, the most reliable webhook configuration, instant account activation, and the most comprehensive Indian payment method support. Switch to Cashfree if you reach high transaction volumes where the 0.25% fee difference becomes meaningful (above Rs 50 lakh/month). Use PayU if you need the LazyPay BNPL feature for high-AOV products.
| Feature | Razorpay | PayU | Cashfree | CCAvenue |
|---|---|---|---|---|
| Domestic fee | 2% | 1.99% | 1.75% | 2–3% |
| UPI support | ✓ | ✓ | ✓ | ✓ |
| COD support | ✓ | ✓ | ✓ | ✓ |
| EMI options | ✓ | ✓ | ✓ | ✓ |
| Instant activation | ✓ | ✓ | ✓ | ✗ 3–7 days |
| Shopify App quality | Best | Good | Good | Basic |
| International cards | ✓ | ✓ | ✓ | ✓ |
| BNPL options | Partial | ✓ LazyPay | ✓ | Partial |
How to Integrate Razorpay on Shopify — Step-by-Step for Indian Stores
Razorpay is the most widely used payment gateway for Indian Shopify stores. Here is the complete step-by-step integration process:
How to Integrate PayU on Shopify — Step-by-Step
PayU is the second most popular payment gateway for Indian Shopify stores, particularly for established businesses and brands wanting the LazyPay BNPL option. The setup process is similar to Razorpay:
Setting Up COD (Cash on Delivery) on Shopify for Indian Stores
COD is not a payment gateway integration — it is a manual payment method configured separately in Shopify. It accounts for 20–40% of Indian eCommerce orders and is non-negotiable for most product categories including fashion, FMCG, and consumer electronics.
How to Enable COD on Shopify
COD orders in India have a significantly higher return-to-origin (RTO) rate than prepaid orders — typically 20–35% for fashion and lifestyle categories. Build your shipping cost model to account for COD RTOs. Consider adding a small COD handling charge (Rs 20–50) to offset the higher fulfilment cost of COD orders, which is a widely accepted practice in Indian eCommerce.
UPI Payment Integration on Shopify for Indian Customers
UPI (Unified Payments Interface) is the dominant payment method in India — accounting for over 50% of digital transactions. UPI is not a separate gateway; it is a payment method available through Razorpay, PayU, Cashfree, and other Indian gateways. Here is what you need to know about UPI on Shopify:
- UPI is automatically included in Razorpay, PayU, and Cashfree when these gateways are configured correctly — you do not need a separate UPI integration.
- UPI payment methods at checkout include: UPI ID (VPA), QR code scan, and app-based UPI (Google Pay, PhonePe, Paytm) — all handled by the gateway.
- UPI transaction limit is Rs 1,00,000 per transaction for most banks — sufficient for the vast majority of Indian eCommerce orders.
- UPI for high-AOV products — if your average order value exceeds Rs 1,00,000 (jewellery, electronics, furniture), ensure you offer card and net banking as well, since UPI limits may apply.
- UPI intent flow vs collect flow — Razorpay uses the UPI intent flow on mobile, which redirects customers directly to their UPI app. Ensure this is enabled in your Razorpay app settings for the best mobile conversion rate.
GST-Compliant Checkout Configuration on Shopify for Indian Stores
GST (Goods and Services Tax) compliance at checkout is mandatory for registered Indian businesses selling online. Shopify supports GST through its built-in tax configuration, but it must be set up correctly — it is not automatic.
How to Configure GST on Shopify
Why Webhook Configuration Is the Most Critical Step in Indian Payment Integration
Webhooks are the most important and most frequently misconfigured element of Shopify payment gateway integration in India. Here is exactly why they matter and what goes wrong without them:
The Problem Without Webhooks
The standard Shopify payment flow works like this: customer pays → gateway processes payment → customer is redirected to the Shopify success page → Shopify creates the order. The problem: if the customer closes the browser, loses internet connection, or the redirect fails after payment is processed, the order is never created in Shopify — even though the money was collected. Without webhooks, you have no recovery mechanism for these lost orders.
How Webhooks Fix This
Webhooks send a server-to-server notification from Razorpay or PayU directly to Shopify when a payment is captured — independently of what the customer's browser does. Even if the customer never reaches the success page, the webhook fires and Shopify creates the order automatically. This is the difference between losing 5–15% of your paid orders silently and capturing 100% of successful payments.
Do not launch your Shopify store until you have verified that your payment gateway webhooks are correctly configured and tested. The test: complete a payment on mobile, then immediately close the browser before the success page loads. Check your Shopify admin — if the order appears, webhooks are working. If it does not appear, your webhook configuration is broken and you will silently lose orders from day one.
BYB Traction Handles Complete Payment Gateway Integration on Every Shopify Build
Every Shopify store BYB Traction builds for Chennai and Indian businesses includes complete payment gateway integration — Razorpay or PayU setup, webhook configuration, COD setup, UPI enablement, GST checkout, and a full payment cycle test before handover. As a trusted digital marketing agency in Chennai and Certified Shopify Partner, we have integrated Indian payment gateways on over 100 Shopify stores and can verify your payment setup is correct before you go live.
Payment integration included
- Razorpay or PayU — live mode setup
- Webhook configuration + testing
- UPI, cards, net banking enabled
- COD setup + order tagging
- GST checkout configured
- Full payment cycle test
- 15-day post-launch support
All Startup + advanced integration
- All Startup payment setup, plus:
- EMI configuration for high-AOV products
- Multiple gateway setup if required
- Shiprocket COD integration
- GST invoice app setup
- 30-day post-launch support
- 1 Month SEO Growth Plan
All Growth + custom flows
- All Growth payment setup, plus:
- Custom payment flow development
- OTP-based COD verification
- ERP / accounting integration
- Full payment audit report at handover
- 60-day post-launch support
- 1 Month SEO Premium Plan
Already have a live Shopify store in India but unsure if your payment gateway is configured correctly? BYB Traction offers a free payment gateway audit — we will check your webhook setup, test mode status, COD configuration, and UPI availability. Request your free audit →
Conclusion: Get Your Payment Gateway Right Before Everything Else
Shopify payment gateway integration in India requires more care than a simple plugin install. Razorpay is the best choice for most Indian Shopify stores in 2026 — chosen for its integration quality, webhook reliability, and comprehensive Indian payment method support. Whatever gateway you choose, the setup is only complete when webhooks are configured, the full payment cycle including UPI and COD is tested with real transactions, and GST checkout is verified.
Every Indian Shopify store that launches with a properly configured payment gateway has a measurable advantage over those that do not — higher checkout completion rates, lower silent order loss, and full COD revenue from day one. This is one setup step that is worth doing perfectly the first time. If you also need broader digital infrastructure, BYB Traction provides Website Development Services in Chennai including WordPress and custom builds alongside every Shopify project.
4th Floor, 4A, Rashmi Towers, Nungambakkam, Chennai 600034 · +91-9600448666 · contact@bybtraction.com · View Shopify Services →
Frequently Asked Questions
Razorpay is the best payment gateway for most Indian Shopify stores in 2026. It has the highest-quality official Shopify App Store integration, the most reliable webhook configuration, instant account activation for most businesses, and comprehensive support for all Indian payment methods including UPI, cards, net banking, wallets, EMI, and COD. Cashfree is worth considering for high-volume stores where the lower 1.75 percent transaction fee becomes financially significant above approximately Rs 50 lakh per month in revenue.
Shopify Payments is not available in India due to RBI (Reserve Bank of India) regulations governing payment aggregators and the licensing requirements for cross-border payment settlement in India. Indian merchants must use a third-party RBI-regulated payment gateway such as Razorpay, PayU, CCAvenue, or Cashfree. Shopify has not announced a timeline for Shopify Payments India availability. Using a third-party gateway does incur additional Shopify transaction fees on Basic and Standard plans, which can be avoided on Advanced and Plus plans.
Indian payment gateway fees for Shopify stores are: Razorpay charges 2 percent on domestic transactions and 3 percent on international. PayU charges 1.99 percent domestic and 3.5 percent international. Cashfree charges 1.75 percent domestic and 3 percent international. CCAvenue charges 2 to 3 percent depending on your plan. On top of gateway fees, Shopify charges an additional transaction fee on Basic (2 percent) and Standard (1 percent) plans when using third-party gateways. This additional fee is waived on Advanced and Plus plans.
A webhook is a server-to-server notification sent by your payment gateway to Shopify when a payment is successfully captured. It is critical because without webhooks, if a customer closes the browser or loses internet connection after paying but before the success page loads, the order is never created in Shopify even though the payment was collected. Properly configured webhooks ensure orders are created regardless of what happens to the customer browser session after payment. Misconfigured or missing webhooks typically result in 5 to 15 percent of paid orders being silently lost on Indian Shopify stores.
To set up Cash on Delivery on Shopify: go to Settings, then Payments, then Manual Payment Methods, then Add Manual Payment Method, and select Cash on Delivery. Add a clear name and description explaining how COD works for your customers. If you use a shipping aggregator like Shiprocket or Delhivery, also configure COD eligibility within those platforms to restrict COD to serviceable pin codes. Use an automation or app to tag COD orders separately in your Shopify admin so your fulfilment team can treat them differently from prepaid orders.
Yes. UPI is supported on Shopify in India through all major payment gateways including Razorpay, PayU, Cashfree, and CCAvenue. UPI is automatically included when these gateways are configured correctly. On mobile, Razorpay uses the UPI intent flow which redirects customers directly to their preferred UPI app such as Google Pay, PhonePe, or Paytm for a seamless checkout experience. UPI typically accounts for 40 to 60 percent of digital transactions on Indian Shopify stores. The standard UPI transaction limit is Rs 1,00,000 per transaction.
To configure GST on Shopify for Indian stores: go to Settings, then Taxes and Duties, then India, and set up your product tax rates based on your GST slab (5, 12, or 18 percent for most consumer goods). Decide whether your prices are tax-inclusive or tax-exclusive and configure this in Shopify tax settings accordingly. For B2B customers requiring GST invoices showing IGST, CGST, and SGST breakdown, install a GST invoice app from the Shopify App Store such as GST Invoice Generator or Order Printer Pro. Always verify your specific GST rate with a chartered accountant.
To test your Shopify payment gateway before launch: first confirm the gateway app is in live mode with production API keys, not test mode. Place a real order using a debit card for the minimum possible amount. Then place a second test using UPI. Verify both orders appear in Shopify admin within 2 minutes. Check the Razorpay or PayU dashboard to confirm both payments are recorded. Send the order confirmation emails and verify they arrive correctly. Then process refunds for both test transactions from Shopify admin and confirm the refunds appear in your gateway dashboard and return to the source account.
