Of all the decisions you make when setting up a Shopify store, the payment gateway is one people rush the most. It feels like admin. But it touches every single order: how smooth checkout feels, how many payments fail, what you pay per transaction and how quickly the money reaches your bank.
Here's how we help clients choose.
Start with what's available in your admin
Go to Settings, then Payments in your Shopify admin. That's the list that matters, because gateway availability changes over time. In India, you'll usually see providers such as Razorpay, PayU, Cashfree, CCAvenue and PhonePe, among others. Most support cards, UPI, net banking and wallets.
What to compare
Transaction fees
Each gateway charges a percentage per transaction, and rates can differ for cards, UPI and international payments. Also check whether Shopify charges an additional transaction fee on your plan when you use a third-party gateway. Put both numbers side by side; the difference adds up quickly as you grow.
Settlement time
How long until the money lands in your account? For a small brand managing cash flow, T+1 versus T+3 genuinely matters.
UPI experience
A huge share of Indian shoppers pay by UPI. Test how the gateway handles it on a phone. Does it open the UPI app smoothly? Does it return to your store properly after payment?
Success rates
A gateway with a few percent more failed payments quietly costs you sales. Ask other store owners about their experience, and watch your own abandoned checkouts after launch.
Onboarding and KYC
Activation needs business documents and a bank account. Start this early. We've seen launches delayed a week because KYC wasn't done.
Support
When a payment gets stuck on a busy sale day, how fast can you reach a human?
What about cash on delivery?
Many Indian shoppers still prefer COD, especially first-time buyers. You can offer it through Shopify's manual payment method or through your shipping partner. Just be aware that COD comes with return-to-origin risk. We've written a separate guide on reducing COD returns.
Can you use more than one?
Often, yes. Some stores run one main gateway plus COD, or add a second provider for specific payment methods. Keep it simple, though. Too many options at checkout can confuse people.
Before you launch
- Complete KYC and activate the gateway.
- Place a real test order with UPI and a card, then refund it.
- Check your checkout on a phone from start to finish.
- Confirm settlement details and bank account.
- Make sure order confirmation emails look right.
Our Shopify launch checklist covers the rest.
Our honest take
There's rarely one "best" gateway. The right one is the one with fair fees, good UPI success rates and support that actually answers. Test before you commit, and review it again after your first few hundred orders.
Setting up a new store? Payment gateway guidance is included in our Shopify packages. Ask us anything.