If you are planning to launch Shopify stores in India, one of the first questions you will face is: “How will I accept payments from customers?”
It might sound like a simple decision, but the truth is that the right payment gateway can make or break your online business. Imagine this, your customer has added products to the cart, they are ready to buy, but at checkout the payment process feels slow, untrustworthy, or worse, it fails. The result? Abandoned carts and lost sales. Lost customers.
Unlike merchants in other regions, Indian sellers don’t have access to Shopify Payments, the built-in payment solution Shopify offers in places like the US or UK. That means entrepreneurs here need to carefully evaluate third-party gateways to ensure smooth transactions, customer trust, and reasonable fees.
The good news? India has a rapidly growing fintech ecosystem, with several payment gateways tailored to online businesses. In this guide, I will guide you through the best payment gateways for Shopify stores in India, their fees, strengths, and why pairing them with reliable hosting like Truehost can make your store unstoppable.
Razorpay
When it comes to Shopify stores in India, Razorpay is one of the most widely recommended gateways. It is built to fit in easily with Shopify stores, offering a checkout process that feels almost native. Customers can pay using UPI, credit cards, debit cards, wallets, and even EMI options, all in one place.
What sets Razorpay apart for Shopify stores is the balance between flexibility and insights. You don’t just get payment processing, you also gain access to dashboards with real-time analytics. This helps you understand customer trends, spot different obstacles, and make smarter decisions about your business.
Fees typically start to range from around 2% + GST per domestic transaction. That is in line with industry standards, but Razorpay sweetens the deal with quick onboarding and fast settlement timelines. For small and mid-sized Shopify sellers, that speed can make a huge difference in keeping cash flow steady.
The customer trust factor is also worth mentioning. Razorpay has grown into a brand that Indian shoppers recognize. For those new Shopify stores, trust can directly influence whether someone completes their first order. A smooth Razorpay checkout can reduce abandonment and help you win repeat buyers.
If you are scaling fast, Razorpay gives you advanced tools like subscription billing, smart routing, and automated reconciliation. These features make it a strong choice be it that you are running a small boutique store or aiming for enterprise-level growth.
PayU
For those Shopify stores looking for a payment partner with deep industry credibility, PayU is a solid choice. Recently approved by the Reserve Bank of India as a licensed payment provider, PayU carries the kind of compliance backing that larger businesses value.
On Shopify stores, PayU shines for enterprise sellers or stores that expect high transaction volumes. One of its standout features is smart routing. This automatically directs transactions through the most reliable path, reducing failure rates. When you are running big sales or campaigns, that reliability can save thousands in lost revenue.
Fraud protection is another strength. PayU uses AI-driven systems to identify risky transactions in real time. For many Indian merchants, especially those shipping higher-value items, this provides an added layer of security and peace of mind.
In terms of cost, domestic transaction fees usually fall between 1.75%-2%. The company also offers custom pricing for high-volume sellers. That flexibility makes PayU especially attractive to Indian stores that are already scaling and don’t want transaction fees eating into margins.
Customers benefit too. PayU supports a wide range of options be it UPI, net banking, credit cards, debit cards, BNPL, and even EMI. For those stores where customer preferences are highly varied, that inclusivity ensures no sale is lost just because a payment method wasn’t available.
If your Shopify store is aiming big, PayU combines enterprise-ready tech with compliance strength, making it a smart partner for sustainable growth.
Tip:
Launching your Shopify store in India? Don’t just pick a payment gateway, make sure your hosting can keep up too. With Truehost, you get lightning-fast local servers, top-notch uptime, and e-commerce-focused support.
Check out Truehost’s affordable hosting plans here.
Cashfree
Cash flow is the lifeblood of any Shopify store. That is where Cashfree earns its reputation. Known for lightning-fast settlements, sometimes even same-day payouts, Cashfree helps store owners reinvest quickly into inventory, ads, or operations.
For Shopify stores, Cashfree brings a modern toolkit. Beyond standard payments, it supports UPI AutoPay for subscriptions, payment links, and one-click refunds. That versatility is gold for stores experimenting with business models, whether it is subscription boxes, pre-orders, or flash sales.
What makes Cashfree particularly appealing is its developer-friendly ecosystem. APIs and advanced dashboards allow deeper customization. If your Shopify store is tech-savvy or working with developers, Cashfree opens the door to more control over the payment experience.
Pricing usually sits around 1.75%-1.9% + GST for domestic payments. It is competitive, and given the speed of settlements, many Shopify store owners feel the trade-off is worth it. After all, money in your account today is more valuable than money in three days.
Customer satisfaction also gets a boost with Cashfree. Features like instant refunds and automated reconciliations mean fewer delays or disputes. In the world of Shopify stores, where customer expectations are rising fast, that responsiveness can make your brand stand out.
For modern, agile Shopify stores, Cashfree is more than a payment processor, it is a growth enabler.
Instamojo
Many are the times we see that Shopify stores start with small budgets and maybe even simple setups. If you are a creator, small business owner, or social media-driven shop, Instamojo may be the perfect fit.
What makes Instamojo stand out is its simplicity. It is known for no setup fees, straightforward onboarding, and integrations that don’t require a tech team. For Shopify stores just starting out, that ease of use removes a huge barrier.
Transaction charges are about 2% + ₹3 per order. While slightly higher for micro-transactions, many Shopify stores see it as fair trade for the simplicity and minimal overhead. You can start selling quickly without worrying about hidden costs.
Instamojo also brings added features like payment links, online store options, and tools for freelancers or creators. If you are building a Shopify store alongside Instagram or WhatsApp selling, Instamojo gives you flexible ways to collect payments across platforms.
For customers, the trust factor is decent too. Instamojo has become a go-to for small sellers across India, and its presence is growing. Shoppers who usually see it on Shopify stores checkout page usually feel comfortable enough to complete the payment.
If your Shopify store journey is just beginning, Instamojo offers a startup-friendly, low-risk way to get selling quickly.
CCAvenue
For Shopify stores planning to expand internationally, CCAvenue is a strong option. It is one of the oldest and most trusted payment gateways in India, with a reputation for reliability.
What makes CCAvenue stand out for Shopify stores is its huge range of options. It supports over 200 payment methods and allows payments in multiple currencies. If you are targeting overseas buyers or want to prepare for cross-border sales, CCAvenue makes that possible without extra hassle.
When it comes to cost, fees usually range between 2%-3% depending on the plan and sales volume. While that is a little higher than newer gateways, many stores see it as worth the price for global reach and customer trust.
Another benefit is its reliable system. CCAvenue can handle large numbers of transactions without downtime. For bigger stores, especially during festivals or peak seasons, that stability is crucial.
It also provides extras like customizable checkout pages and simple reports. These give Shopify stores more control over the customer experience and insights into buyer behavior.
Paytm Payment Gateway
India is a mobile-first country. For Shopify stores targeting mobile shoppers, the Paytm Payment Gateway is a natural fit.
Paytm is already a household name, trusted by millions. When customers see the Paytm option on a Shopify store checkout page, they instantly recognize it and are more likely to complete the purchase. That familiarity reduces hesitation and increases conversions.
Setup with Shopify stores is also simple. Paytm supports UPI, wallets, and cards. There are no setup fees, and transaction charges are competitive, usually around 2%. The gateway is built for mobile checkouts, making the process fast and smooth on smartphones.
For those stores focusing on younger buyers or mobile-heavy traffic, Paytm is especially useful. It fits into the daily habits of customers who already use Paytm for regular payments.
While it may not have all the advanced features of Razorpay or PayU, Paytm’s biggest strength is its wide acceptance and brand trust.
Wrapping Up
Choosing the right payment gateway for your Shopify stores depends on where your business is, who your customers are, and what your growth goals look like.
- Razorpay and PayU are solid choices for most Shopify stores.
- Cashfree is great for subscriptions and quick payouts.
- Instamojo works well for beginners and small Shopify stores.
- CCAvenue is ideal if you want to sell internationally.
- Paytm shines for mobile-first Shopify stores targeting India’s smartphone users.
But here is the catch, no matter which gateway you choose, it will only work as well as the hosting behind your store. Slow servers mean abandoned carts, failed checkouts, and unhappy buyers. That is why hosting your stores on Truehost gives you the edge: fast, secure, and reliable performance that keeps sales flowing smoothly.
👉 Ready to give your Shopify store the solid foundation it deserves? Explore Truehost’s affordable hosting plans today and set yourself up for long-term growth.
So, what about you? Which payment gateway do you think works best for Shopify stores like yours? Share your thoughts in the comments. I’d love to hear your choice!
