Which Shopify Payment Gateways Can Indians Use in 2025?

With over 6.5 million Indian businesses going digital by 2030, platforms like Shopify are becoming the go-to for entrepreneurs who want to sell products online with minimal hassle.

But almost every Indian Shopify seller hits the same roadblock: choosing the right payment gateway.

In this blog, we’ll break down which Shopify payment gateways can Indians use, from Razorpay and PayU to emerging players like Easebuzz and PhonePe. We’ll compare features, costs, compliance requirements, and show you how to set them up smoothly.

And if you’re thinking beyond India, doola helps Indian entrepreneurs set up US LLCs, access global payment gateways like Stripe, and stay compliant both locally and internationally.

Can Indians Use Shopify Payments in 2025?

Let’s clear the biggest misconception upfront: Shopify Payments is not available in India.

Shopify Payments, powered by Stripe, is Shopify’s native gateway that simplifies payouts and eliminates third-party integrations. But as of now, Indian sellers must rely on third-party payment gateways.

What does that mean for sellers?

• You’ll need to set up a separate merchant account with a supported gateway.

• You’ll have to manage KYC, compliance, and settlement timelines with that provider.

• The right choice will depend on whether you sell locally, internationally, or both.

Now, let’s look at the officially supported payment gateways in India.

🔖 Related Read: Shopify for Beginners: How to Accept International Payments in Shopify in 2025

Which Shopify Payment Gateways Can Indians Use?

Deciding on the right payment gateway is one of the biggest decisions for Indian Shopify sellers.

Each option comes with its own set of features, pricing, compliance requirements, and strengths depending on whether they are targeting local customers, subscription models, or global buyers.

Here’s a detailed breakdown of the leading and emerging players in India:

1. Razorpay: India’s All-in-One Gateway for Modern Businesses

Best for: SMEs scaling up, SaaS startups, or any brand with a subscription model.

Razorpay has quickly become the go-to choice for Indian e-commerce businesses thanks to its wide range of payment modes and advanced features like subscriptions, smart routing, and international acceptance.

Features:

✔️ Supports UPI

✔️ Debit/credit cards

✔️ Wallets

✔️ EMI options

✔️ BNPL (Buy Now Pay Later)

✔️ Recurring billing

✔️ Especially useful for SaaS or membership-based models

✔️ “Smart Collect” for easier reconciliation of customer payments.

Settlement: Funds settle into your account within T+2 working days, balancing speed and reliability.

Integration: Razorpay has a dedicated Shopify app and also offers developer-friendly APIs for businesses needing custom checkout flows.

Compliance: Requires full KYC during onboarding, is RBI-compliant, and PCI DSS certified to ensure safe transactions.

Support: 24/7 chat and email ticketing system, with robust developer documentation for smooth integrations.

💰 Pricing & Fees

Category	Details
Domestic transaction fees	~2-3% + GST/VAT for standard payment modes such as UPI, debit cards, credit cards, and wallets.
Premium / International / Amex / Diners / EMI	~3% for premium cards (Amex, Diners), international credit cards, and EMI-based transactions.
Setup / Annual fees	Typically none for basic plans. Some business-tier accounts may charge around INR 5,000 as a setup fee plus INR 5,000 per year for maintenance, advanced features, or international payments.

2. PayU: High-Volume Transactions, Enterprise Reliability

Best for: Large-scale businesses handling thousands of orders daily.

PayU is one of India’s oldest and most trusted gateways, ideal for businesses handling large volumes of transactions and requiring stability. With PayU Biz tailored for SMEs and PayU Enterprise for scaling stores, it’s the best growth-ready solution for Indian Shopify sellers.

Features:

✔️ Offers UPI

✔️ Cards

✔️ Wallets

✔️ BNPL

✔️ Recurring billing

✔️ Fraud prevention tools

✔️ Dynamic routing for better transaction success rates.

Settlement: Standard settlement time of T+2 days, suitable for businesses with steady cash flow.

Integration: Comes with a Shopify app, plugins, and scalable APIs. Big plus for businesses with advanced customization needs.

Compliance: RBI-approved; merchants must provide GST and PAN details for onboarding.

Support: Phone and email-based merchant support, plus dedicated account managers for enterprise clients.

💰 Pricing & Fees

Category	Details
Domestic transaction fees	2%-2.5% + GST / VAT for cards, UPI, wallets, etc.
Premium / International / Amex / Diners / EMI	~3-4% for international payments.
Setup / Annual fees	Usually zero for standard merchants. For enterprise or high-volume, custom plans are offered, which may include fees.

3. Cashfree Payments: Fast Settlements, Marketplace-Friendly

Best for: Businesses needing instant settlements, marketplaces.

Cashfree, an official Shopify partner, is known for speed, especially its same-day or next-day settlement options, which help with cash flow. It also offers payout automation tools for instant vendor disbursements, bulk payouts, recurring billing, and smart routing to reduce failure rates.

Features:

✔️ UPI

✔️ Cards

✔️ Wallets

✔️ Payouts

✔️ Split payments

✔️ Auto-refunds.

Settlement: Same-day or next-day settlements.

Integration: Strong Shopify plugin, robust APIs.

Compliance: KYC with PAN, Aadhaar, GST.

Support: Developer-first support, strong documentation.

💰 Pricing & Fees

Category	Details
Domestic card/UPI/wallet fees	~ 1.75% + GST for standard domestic payment methods.
International card fees	Higher (~3.5% + a small fixed fee in INR) for international cards plus possible FX markups.
Setup / Annual fees	No known major setup or maintenance fees for standard plans in many use-cases; costs are mostly per-transaction.

4. CCAvenue: Legacy Gateway With Global Reach

Best for: Established businesses with international customers.

CCAvenue is one of India’s oldest and most established payment gateways, often considered the “legacy player” in the market.

With support for 200+ payment modes and 27 major foreign currencies, it’s particularly attractive for Indian Shopify sellers eyeing international customers across North America, Europe, and the Middle East.

Features:

✔️ 200+ payment modes

✔️ Multi-currency acceptance

✔️ EMI

Settlement: T+2–T+3 working days.

Integration: Official Shopify plugin.

Compliance: RBI & PCI DSS certified.

Support: 24/7 merchant support.

💰 Pricing & Fees

Category	Details
Domestic cards / netbanking / debit	~ 2% + GST on many domestic credit/debit cards and net banking.
Commercial credit cards / domestic premium cards	Higher, usually about 3%.
International / multi-currency / foreign cards	Generally 3%-4% for international cards, and multi-currency payment options can be around 4.99%,  especially for less common currency pairs.
Setup / annual fees	Startup plans often have low or zero setup feesPrivilege plans have higher fees (e.g., ₹30,000 setup in some plans) plus maintenance or software upgrade charges (e.g. ~₹1,200/year).

5. Instamojo (if supported by Shopify)

Best for: Freelancers, creators, and small-scale digital product sellers

Instamojo began as a link-based payment collection tool for individuals and micro-businesses and has grown into a full-fledged digital commerce platform, offering online store builders, invoicing tools, digital file delivery, and app integrations.

📌 Note: For Shopify merchants, Instamojo’s native integration remains limited, but it still serves as a supplementary payment option for entrepreneurs who sell digital products, subscriptions, or service-based transactions.

Features:

✔️ Offers UPI

✔️ Cards

✔️ Wallets

✔️ Payment links

✔️ Digital product delivery

✔️ Great for selling e-books, courses, or music online.

Settlement: T+3 working days, a bit slower than competitors.

Integration: Shopify compatibility is limited; works best as a standalone solution.

Compliance: Basic KYC requirements make it easy to onboard quickly.

Support: Ticket-based support with an active community forum for troubleshooting.

💰 Pricing & Fees

Category	Details
Basic transaction fee	~ 2% + INR 3.00 per domestic transaction (excluding GST).
International cards / premium/non-IN instruments	~ 3% +  INR 3.00 (or more) for Amex / foreign cards.
Setup / annual fees	Typically zero for basic/digital-product sellers and small stores. Premium features may incur a subscription or higher transaction rates.

6. Easebuzz (emerging): Flexible Gateway for Startups

Best for: Startups and small businesses experimenting with online models.

A relatively newer entrant, Easebuzz is gaining traction among startups and SMEs with its competitive rates and strong API-driven infrastructure. It focuses on flexibility for new businesses.

Features:

✔️ UPI

✔️ Cards

✔️ EMI

✔️ Recurring billing

✔️ Custom checkout flows

Settlement: T+2 days. Reliable, if not the fastest.

Integration: APIs available; Shopify integration through apps or third-party solutions.

Compliance: RBI-approved and KYC-driven onboarding.

Support: Phone and ticket-based support; account managers available for larger clients

💰 Pricing & Fees

Category	Details
Basic transaction fee	~2% for domestic transactions with UPI / cards etc., for small-to-medium volumes.
International / foreign cards	Rates are higher (often aligned with other gateways ~3%+) though specifics always require direct quotes.

7. PhonePe (emerging): UPI-First Gateway With Growing Reach

Best for: Sellers with a heavily UPI-driven customer base.

Built on India’s most popular UPI app, PhonePe is now positioning itself as a payment gateway for online stores, with Shopify compatibility gradually rolling out.

Features: Strong focus on UPI payments, with growing support for cards and wallets.

Settlement: T+1 day, faster than many traditional players.

Integration: Shopify compatibility is still rolling out but APIs are available.

Compliance: RBI-compliant; merchants must complete KYC.

Support: Merchant support handled through PhonePe Business platform.

💰 Pricing & Fees

Category	Details
Domestic UPI transactions	Zero or minimal fees.
Cards / wallets	Charges are under 2% in many cases, but the exact numbers depend on merchant agreements.

8. International Gateways (PayPal, Stripe Atlas, etc.)

Best for: Businesses scaling globally, especially those targeting US and European customers.

For businesses eyeing the US or Europe, international gateways like PayPal and Stripe are indispensable. While Stripe isn’t directly available in India, a US entity (like a Delaware LLC) makes access possible.

• PayPal: Universally trusted among buyers worldwide. Charges are ~4.4% plus fixed fee per transaction. Settlement is in INR via Indian bank accounts, but the forex spread can eat into margins.

• Stripe (via US LLC & Atlas): Stripe isn’t directly available in India. To use it, many Indian founders set up a US LLC (often in Delaware) to access Stripe through Atlas. This unlocks advanced developer tools and seamless integrations.

• Compliance: RBI forex rules apply to PayPal. Stripe requires a U.S. entity, bank account, and EIN.

💰 Pricing & Fees

PayPal charges 2.5% plus a small fixed fee for domestic payments, with added currency conversion charges and higher costs on international transactions.

Stripe isn’t directly available to Indian entities, but through a US LLC or Atlas setup, merchants pay 2–3% plus a fixed fee for US card processing, along with extra charges for cross-border transactions and Forex transfers. 

🔖 Related Read: Best Shopify India Payment Gateways and Stripe Workaround

📊 Shopify Payment Gateways (India): What Should You Choose?

Gateway	Domestic Fees	Intl. Fees	Settlement Time	Multi-Currency	Integration	Best For
Razorpay	2%–3%	3%	T+2 days	Yes	Easy	SMEs and subscriptions
PayU	2%–2.5%	3%–4%	T+2 days	Yes	Easy	Large-scale stores
Cashfree	1.9%–2.5%	3%	T+2 days	Yes	Easy	Marketplaces
CCAvenue	2%	3–4%	T+2–T+3 days	Yes	Easy	International sellers
Instamojo	2% + INR 3.00	3–4%	T+3 days	Limited	Moderate	Freelancers
Easebuzz	~2%	3%	T+2 days	Limited	Moderate	Startups
PhonePe	<2%	N/A	T+1 day	No	Developing	UPI-heavy sellers
PayPal	N/A	4.4%+	T+2–T+3 days	Yes	Easy	Global buyers

How to Choose the Best Shopify Payment Gateway in India

For Indian Shopify sellers, the “best” payment gateway depends on the product category, target audience, and growth plans.

For example, Razorpay is often the all-rounder for SMEs, Cashfree is for quick settlements, Instamojo is freelancer-friendly, and PayPal or Stripe open global doors. 

Here are the key factors Indian merchants should evaluate, along with examples and use cases:

1. Transaction Fees & Hidden Charges

Every percentage point counts in e-commerce. For example:

• If you sell a ₹1,500 T-shirt with a 30% margin (~₹450 profit), and your payment gateway charges 2% + GST (~₹35), your net profit becomes ₹415. Not bad.

• But if the same transaction runs through a gateway charging 3.5% for international cards (~₹53), your profit drops to ₹397. On 1,000 orders, that’s a loss of nearly ₹18,000 just from higher fees.

📌 Takeaway: Always compare domestic vs international rates, fixed per-transaction fees (like INR 3.00 on Instamojo), and GST on top. Sellers with slim margins (like FMCG brands) feel the pinch more than premium DTC brands that price higher.

2. Payment Methods Supported (UPI is a Must-Have)

In India, UPI has overtaken cards as the #1 payment mode, clocking over 14 billion monthly transactions in 2025. If your gateway doesn’t offer UPI, you’re already losing customers.

• Example: A skincare DTC brand selling to Gen Z customers will see most checkouts happen via UPI apps like PhonePe, Google Pay, or Paytm. Not having UPI will cause instant drop-offs.

• For higher-ticket products (furniture, electronics), customers often prefer EMI on credit cards. Similarly, SaaS or subscription businesses need recurring billing support.

📌 Takeaway: Match payment methods to your target audience. UPI for mass-market and youth-driven brands, cards plus EMI for higher-ticket items, and recurring billing for SaaS or subscription models.

3. Local vs. Global Audience

Ask yourself: are you serving mostly Indian customers, or is the US / EU also a big part of your market?

• Local-only brand: If 90% of sales are in India, a domestic-friendly gateway like Razorpay, PayU, or PhonePe works fine.

• Global expansion: If you’re selling artisanal handicrafts to US buyers on Shopify, you’ll need PayPal or Stripe (via a US LLC). Please note, PayPal fees can hit 4.4% + FX charges, so you’ll want to bake that into pricing.

📌 Takeaway: A gateway with multi-currency support and smooth cross-border settlements is essential for international scaling. For India-only stores, prioritize UPI efficiency and low domestic fees.

4. Settlement Speed & Refund Policy

Cash flow is a critical pillar for small businesses. If your sales spike on a weekend, how quickly do you get the funds?

• Same-day settlement (Cashfree): Can be a lifesaver for D2C brands running high ad spends. Money comes back faster to reinvest in ads.

• T+3 settlements (Instamojo): Might work fine for freelancers or digital product sellers where overhead is low, but for fast-moving inventory (like fashion), that delay could choke restocking.

• Refund handling also matters: If you issue frequent refunds (common in fashion and cosmetics), check if your gateway refunds the transaction fee or keeps it. Losing ₹35 every time a customer returns a ₹1,000 item adds up.

📌 Takeaway: High-volume sellers or ad-driven businesses should prioritize faster settlements. Low-volume or digital sellers can afford slower payouts if fees are lower.

5. KYC & Compliance Ease

Every Indian gateway requires full KYC: PAN, GST, Aadhaar, bank proofs. For most sellers, that’s standard.

But if you’re registering as a freelancer or don’t yet have GST, gateways like Instamojo or Razorpay Starter Plans are easier to onboard with.

Example: A new Shopify seller testing dropshipping might not want the hassle of GST immediately. Instamojo lets you get started faster.

On the other hand, if you’re planning big ad spends or international expansion, it’s worth going through a full KYC with Razorpay/PayU for higher transaction limits and smoother compliance.

📌 Takeaway: Match your compliance readiness with your growth stage. Start light if you’re testing, but move to enterprise-ready gateways as you scale.

6. Customer Trust (Security Certifications & Dispute Handling)

Customers want the assurance that their money is safe. Gateways certified with PCI DSS Level-1 and RBI guidelines signal credibility. Let’s look at two scenarios:

• Scenario 1: A high-value electronics store charging ₹50,000 per order requires strong dispute handling and chargeback support. Razorpay and PayU are better options here than the newer players.

• Scenario 2: For a low-ticket store selling stickers or digital downloads, customers care more about convenience (e.g., UPI, Paytm wallet) than chargeback processes.

📌 Takeaway: If your product involves high-value payments, prioritize dispute resolution. If you’re in impulse-buy categories, focus on ease of checkout.

7. Scalability for High-Volume Sales or International Expansion

Your payment gateway should grow with you. Many businesses outgrow their first gateway once sales scale.

• A homegrown fashion brand might start with Instamojo for its simplicity but move to Razorpay when order volumes hit 500+ per day.

• A SaaS founder in India might start with Razorpay Subscriptions, but once US expansion is on the cards, setting up Stripe via a US LLC becomes necessary to onboard American customers smoothly.

📌 Takeaway: Always think 12–18 months ahead. Don’t just pick what works today, pick a gateway that won’t become a bottleneck when your volumes double.

FAQs for Indian Shopify Sellers

To help you navigate payment gateways with confidence, here are the most common questions Indian Shopify sellers ask (and the clear answers you need):

1. Are there hidden fees? 

Yes, some gateways tack on GST, chargeback fees, or even hold rolling reserves. Always scan the fine print in the T&Cs so you know exactly what you’re paying for.

2. How to handle declined payments? 

Check that your UPI and Netbanking integrations are updated and working. Most gateways provide a dashboard with real-time decline reasons, so you can troubleshoot quickly.

3. What about KYC challenges? 

Your PAN, Aadhaar, and GST details are must-haves. Missing or mismatched documents can slow down your onboarding, so keep everything ready and up to date.

4. How to handle multi-currency issues? 

Platforms like PayPal and CCAvenue support direct forex transactions. Other gateways may automatically convert foreign payments into INR, which can impact both your margins and customer experience.

5. Can I switch gateways? 

Absolutely. But remember, switching means integration rework, and sometimes settlement delays during the transition. Plan your timing carefully to avoid cash flow disruptions.

🔖 Related Read: How to Set Up Payment Gateways for Your Shopify Store in India: 2025 Guide

Troubleshooting Common Payment Gateway Issues

Payment gateways are the worst place to stumble, right at checkout, when a customer is ready to pay.

Even a single hiccup here directly affects your sales, cash flow, and well…customer trust. 

Below are the most common issues sellers in India face, what they mean for your business, and how to fix them fast:

🚨 Failed Transactions

Issue: Payments don’t go through, customers see errors, or orders remain “pending.”

Business Impact: High cart abandonment, frustrated customers, and lost revenue. Even a 5% failed transaction rate on 1,000 monthly orders at ₹1,000 each = ₹50,000 in lost sales.

Solution: Double-check your Shopify–gateway API keys, clear cache, and run a test order in the sandbox mode. If failures spike suddenly, it’s often due to expired credentials or downtime on the gateway side, check their status page. 

Keep an alternate gateway (like Razorpay + Cashfree) as a fallback to avoid downtime losses.

🚨 UPI Glitches

Issue: UPI payments stuck at “processing” or failing to show up in the gateway dashboard.

Business Impact: Since UPI accounts for 70–80% of Indian ecommerce payments, glitches here can wipe out a big chunk of your daily orders. Customers may not retry, assuming your store is broken.

Solution: Confirm that your gateway’s UPI SDK is the latest version. Outdated SDKs often cause mismatches with apps like GPay or PhonePe. Ask your gateway support to push a patch or upgrade the integration. For sellers with heavy UPI traffic, Razorpay and PhonePe tend to have more stable rails.

🚨 Refund Delays

Issue: Refunds taking 5–7 days to reach the customer’s bank, or worse, not reflecting at all.

Business Impact: Slower refunds result in lower trust, and even negative reviews. For fashion, beauty, or subscription stores where returns are frequent, this directly affects repeat purchases.

Solution: Verify if your gateway offers instant refunds or only T+5 settlements. Some, like Cashfree, provide near-instant refunds if pre-funded wallets are used. Build refund timelines into your customer communication to manage expectations. 

🚨 Poor or Slow Support

Issue: You’ve raised a ticket but get no timely response.

Business Impact: Every day of delay = stalled sales and angry customers. A week-long support lag could cost lakhs in lost orders during peak campaigns.

Solution: Use gateways with dedicated merchant support portals (Razorpay, Cashfree, PayU are reliable here). Always escalate via phone + email, and keep merchant IDs handy to cut back-and-forth. Some sellers even maintain accounts with two gateways, if one support team drags, they simply switch traffic to the other until resolved.

Taxes & Compliance for Indian Shopify Sellers

The smoother your tax trail, the faster you can unlock growth opportunities, from credit lines to global expansion.

Let’s break down the key tax and compliance aspects every Indian Shopify seller must know.

1. GST (Goods and Services Tax)

Almost every Indian e-commerce seller is required to register for GST, especially if annual turnover exceeds INR 40 lakh (INR 20 lakh for service businesses).

Even if your turnover is below the threshold, Shopify and payment gateways may still ask for your GST number to generate invoices.

Without GST, you can’t issue proper tax invoices to customers, claim input tax credits on expenses (like packaging or marketing), or sell on many platforms. 

For example, if you spend INR 50,000 monthly on Facebook ads, input tax credits could save you up to ₹9,000 in GST every month. That’s over INR 1 lakh lost yearly if you skip compliance.

✅ What you need to do

• Register for GST early and update it in Shopify’s tax settings.

• Use Shopify’s invoice automation apps to ensure invoices show correct GST breakup (CGST/SGST or IGST).

• Regularly file GST returns (GSTR-1, GSTR-3B) to avoid late fees and maintain eligibility for input credits.

2. TCS under GST (Tax Collected at Source)

Marketplaces like Amazon and Flipkart are required to collect 1% TCS under GST on every sale and deposit it with the government.

While Shopify itself isn’t a marketplace, if you use third-party integrations that classify as marketplaces, this rule could apply.

📌 Note: Sellers often see a difference between actual payout and expected revenue due to TCS deductions. So, if you sell products worth INR 1,00,000 in a month, INR 1,000 could be deducted as TCS upfront. You need to claim this amount while filing your GST returns to avoid double taxation.

✅ What you need to do

• Track TCS deductions carefully in your bookkeeping.

• Reconcile them with your GST filings so you don’t lose money.

• If you scale beyond Shopify and start selling on marketplaces too, expect TCS deductions across platforms and plan your cash flow accordingly.

3. RBI Forex Rules & FEMA Compliance

If you sell to international customers, all payouts in USD, EUR, or GBP must comply with RBI and FEMA (Foreign Exchange Management Act) guidelines.

This includes proper classification of export of goods/services and ensuring documentation (like invoices and shipping bills) matches the payments received. Non-compliance can delay your payouts or even get them held by banks.

For instance, an INR 5 lakh export payout from PayPal or Stripe could be withheld if the purpose code or GST classification doesn’t match RBI requirements. 

✅ What you need to do

• Use payment gateways like PayPal, Stripe (via US LLC setup), or Payoneer that have robust FEMA-compliant processes.

• Always declare the correct “purpose code” for your export transactions.

• Work with an accountant who understands cross-border e-commerce compliance to avoid mistakes.

🔖 Related Read: How to Start a Business in the USA from India

Why Stop at India? Go Global With doola

We hope this guide gave you a clear roadmap on how the right payment gateway can build customer trust, streamline your cash flow, and position your business for global growth.

And when you’re ready to expand beyond India, that’s where doola can become your partner.

We’ll help you form a US LLC remotely in days, unlock global banking and payment processors, keep your US sales tax compliant, and provide ongoing bookkeeping support so you can focus on scaling.

With doola by your side, you’re not just running a Shopify store, you’re building a global-ready, investor-friendly e-commerce brand.

Ready to take your business worldwide? Sign up with doola today and start your international journey with confidence.

FAQs

Why isn’t Shopify Payments available in India?

Shopify Payments isn’t available in India because Stripe, Shopify’s partner, hasn’t launched in India yet.

Which is the cheapest Shopify payment gateway in India?

Cashfree and PhonePe are among the lowest-cost options.

Can I accept international payments on Shopify India?

Yes, you can accept international payments on Shopify India via PayPal, Razorpay, PayU, or CCAvenue.

How do I withdraw Shopify payments to an Indian bank?

Gateways settle directly into linked Indian bank accounts.

Which payment gateway is best for Indian startups on Shopify?

Razorpay for subscriptions, Cashfree for fast settlements, PayU for large volumes.

Do I need GST to sell on Shopify in India?

Yes, GST is required for compliance and to avoid blocked settlements.

How can doola help me sell internationally with Shopify?

By forming your US LLC, getting you access to Stripe, handling sales tax, and keeping your books updated.