You've built your Shopify store, added products, and now you're stuck at payments. Shopify Payments isn't available in India. Here's the cleanest way to accept UPI, cards, and wallets on your Indian Shopify store in 2026.
Why Razorpay for Shopify India
If you're running a Shopify store targeting Indian customers, your payment gateway options are limited. Shopify Payments doesn't operate in India. That leaves you with third-party gateways, and Razorpay sits at the top for good reasons:
- Widest payment method coverage — UPI, 100+ banks for netbanking, all major wallets (Paytm, PhonePe, Amazon Pay), credit/debit cards, EMI, and international cards
- Dedicated Shopify app (1Razorpay) — official integration, no custom code needed
- Fastest KYC approval — most businesses get activated within 2-3 business days
- Developer-friendly — if you need custom checkout flows later, their API documentation is excellent
- Auto-refund support — handles Shopify's refund triggers natively
- Multi-currency acceptance — accept payments in 100+ currencies if you sell internationally
The alternative gateways (PayU, Cashfree, Instamojo) work, but none match Razorpay's Shopify-specific integration quality. More on that comparison later.
What You Need Before Starting
Gather these before you begin. Missing even one document will stall your KYC:
- Active Shopify store (any plan — Basic, Shopify, or Advanced)
- Business PAN card (or individual PAN for sole proprietors)
- GST registration certificate (mandatory for online sellers)
- Bank account in the business name (current account preferred)
- Business address proof (utility bill, rent agreement, or GST certificate)
- Cancelled cheque or bank statement (for settlement account verification)
- Website with refund/privacy/terms pages — Razorpay checks these during KYC review
If you're a sole proprietor without GST, you can still get approved, but expect a longer review (5-7 days) and a transaction limit until you submit GST details.
Step-by-Step Integration Guide
1. Create Your Razorpay Account
- Go to razorpay.com and click "Sign Up"
- Use your business email (not personal Gmail)
- Select your business type — Private Limited, LLP, Partnership, or Sole Proprietorship
- Fill in business details: legal name, trading name, business category
- Upload KYC documents (PAN, GST, address proof, cancelled cheque)
- Submit for review
Razorpay typically activates accounts within 2-3 business days. You'll get an email once approved. While waiting, you can use their test mode.
2. Install the 1Razorpay App on Shopify
- Open your Shopify admin panel
- Go to Settings > Payments
- Scroll to "Third-party payment providers" or search the Shopify App Store for "1Razorpay"
- Click Install and authorize the app
- The app will ask you to log in to your Razorpay account — do that
The 1Razorpay app is Razorpay's official Shopify integration. Don't use older plugins or generic "Razorpay" apps — they're outdated and lack UPI intent flow support.
3. Connect via API Keys
- In your Razorpay Dashboard, go to Settings > API Keys
- Generate a new API key pair (Key ID + Key Secret)
- Copy both immediately — the Key Secret is shown only once
- Back in the 1Razorpay app on Shopify, paste the Key ID and Key Secret
- Save the configuration
Important: Generate separate keys for test mode and live mode. Never use test keys in production.
4. Test in Sandbox Mode
Before going live, verify everything works:
- In Razorpay Dashboard, switch to Test Mode (toggle at the top)
- Generate test-mode API keys
- Enter test keys in the 1Razorpay app
- Place a test order on your Shopify store
- Use Razorpay's test card:
4111 1111 1111 1111, any future expiry, any CVV - Verify the order shows up in both Shopify and Razorpay dashboards
- Test a refund — process it from Shopify and confirm it reflects in Razorpay
5. Go Live
- Switch Razorpay Dashboard back to Live Mode
- Generate live API keys
- Replace test keys with live keys in the 1Razorpay app
- Place a real order with a small amount (Rs 1-10) to confirm
- Verify settlement in your bank account (takes T+2 business days for first settlement)
Enabling Specific Payment Methods
Razorpay doesn't enable all payment methods by default. You need to activate them:
UPI: Enabled by default. Supports UPI intent (opens Google Pay/PhonePe directly on mobile), QR code, and UPI ID entry.
Credit/Debit Cards: Enabled by default. Supports Visa, Mastercard, RuPay, Amex, and Diners Club.
Netbanking: Enabled by default for top 30 banks. Request additional banks through the Razorpay Dashboard under Payments > Payment Methods.
Wallets: Go to Razorpay Dashboard > Payment Methods > Wallets. Enable Paytm, PhonePe, Amazon Pay, Mobikwik, and others individually.
EMI: Requires separate activation. Go to Dashboard > Payment Methods > EMI. You need a minimum average ticket size of Rs 3,000+ for card EMI. Bajaj Finserv EMI requires a separate merchant agreement.
International Cards: Go to Dashboard > Payment Methods > International. Requires additional documentation (IEC code for exporters). Settlement happens in INR at prevailing exchange rates.
Setting Up COD with Razorpay
Cash on Delivery isn't technically a Razorpay feature — it's a Shopify-native option. But here's how to set it up alongside Razorpay:
- In Shopify Admin, go to Settings > Payments
- Scroll to "Manual payment methods"
- Select Cash on Delivery (COD)
- Add payment instructions (e.g., "Please keep exact change ready")
- Save
To reduce COD RTOs (return to origin), consider adding a small COD surcharge or requiring COD verification via OTP — Razorpay's "Magic Checkout" supports COD OTP verification, which reduces fake orders by 25-30%.
Transaction Fees Breakdown
Razorpay's standard pricing for Shopify merchants in 2026:
| Payment Method | Fee | GST (18% on fee) | Total Effective |
|---|---|---|---|
| UPI | 2% | 0.36% | 2.36% |
| Debit Cards (< Rs 2000) | 2% | 0.36% | 2.36% |
| Debit Cards (> Rs 2000) | 2% | 0.36% | 2.36% |
| Credit Cards (Domestic) | 2% | 0.36% | 2.36% |
| Credit Cards (International) | 3% | 0.54% | 3.54% |
| Netbanking | 2% | 0.36% | 2.36% |
| Wallets | 2% | 0.36% | 2.36% |
| EMI | 2.5% | 0.45% | 2.95% |
Note: These are standard rates. If your monthly volume exceeds Rs 10L, contact Razorpay's sales team for custom pricing. High-volume merchants routinely negotiate down to 1.5-1.8%.
Cost Calculator Examples
Store doing Rs 1,00,000 GMV/month:
- Razorpay fees (2%): Rs 2,000
- GST on fees (18%): Rs 360
- Total payment processing cost: Rs 2,360/month
- Net received: Rs 97,640
Store doing Rs 5,00,000 GMV/month:
- Razorpay fees (2%): Rs 10,000
- GST on fees (18%): Rs 1,800
- Total payment processing cost: Rs 11,800/month
- Net received: Rs 4,88,200
- At this volume, negotiate — you should be paying 1.5-1.8%, saving Rs 1,000-2,500/month
Settlement Timeline and Payout Schedule
Razorpay settles payments to your bank account on a rolling basis:
- Standard settlement: T+2 business days (payment received Monday = settled Wednesday)
- Instant settlement (paid feature): Within 10 minutes, available 24/7 including holidays. Costs an additional 0.5% per transaction.
- On-demand settlement: Withdraw any amount instantly from your Razorpay balance. Same 0.5% fee.
Settlements are batched — you'll receive one lump sum per day covering all transactions from T-2. Each settlement comes with a UTR number and detailed breakdown in your Razorpay dashboard.
Bank holidays affect settlements. If T+2 falls on a bank holiday, settlement moves to the next business day.
Common Errors and How to Fix Them
"Payment failed — BAD_REQUEST_ERROR" Cause: API keys mismatch. You're using test keys in live mode or vice versa. Fix: Double-check which mode you're in and ensure matching keys.
"Order amount must be at least INR 1.00" Cause: Shopify is passing zero or negative values (usually from 100% discount codes). Fix: Set minimum order value in Shopify to Rs 1 or exclude free orders from payment gateway.
UPI payments timing out Cause: Default UPI timeout is 5 minutes. Some customers take longer. Fix: In Razorpay Dashboard, go to Settings > Checkout and increase UPI expiry time to 10-15 minutes.
"International payments not enabled" Cause: You haven't activated international payments in Razorpay Dashboard. Fix: Go to Dashboard > Payment Methods > International and submit required documents.
Refund not reflecting in Shopify Cause: Webhook misconfiguration. Fix: In Razorpay Dashboard, go to Settings > Webhooks. Ensure the webhook URL points to your Shopify store and "payment.refunded" event is enabled.
Duplicate orders appearing Cause: Customer clicks "Pay" multiple times during processing. Fix: Enable idempotency in 1Razorpay app settings. This ensures only one order is created per payment attempt.
Testing Checklist Before Going Live
Run through every item before switching to live keys:
- Test card payment (Visa, Mastercard)
- Test UPI payment (both UPI ID and QR code)
- Test netbanking with at least 2 banks
- Test wallet payment (if enabled)
- Test a failed payment scenario
- Test a refund from Shopify admin
- Verify refund appears in Razorpay dashboard
- Test on mobile (Android + iOS)
- Test with an international card (if enabled)
- Verify order details match between Shopify and Razorpay
- Check webhook delivery in Razorpay Dashboard > Webhooks
- Test COD order flow (if COD enabled)
- Verify email confirmations are sent for successful payments
Razorpay vs PayU vs Cashfree: Quick Comparison for Shopify
| Feature | Razorpay | PayU | Cashfree |
|---|---|---|---|
| Shopify App | 1Razorpay (official) | PayU for Shopify | Cashfree PG |
| Setup Time | 2-3 days | 3-5 days | 2-4 days |
| Standard Fee | 2% + GST | 2% + GST | 1.9% + GST |
| UPI Support | Full (intent + QR + ID) | Full | Full |
| International Cards | Yes (3% + GST) | Yes (3.5% + GST) | Yes (3.5% + GST) |
| Instant Settlement | Yes (0.5% extra) | Yes (0.5% extra) | Yes (0.4% extra) |
| EMI Support | Yes (no-cost EMI available) | Yes | Limited |
| Magic Checkout/One-Click | Yes | PayU One Tap | No |
| COD OTP Verification | Yes | No | No |
| Shopify Integration Quality | Excellent | Good | Average |
| Dashboard/Reporting | Excellent | Good | Good |
| API Documentation | Best in class | Average | Good |
Bottom line: Cashfree is marginally cheaper at standard rates. PayU works fine if you're already using it. But for Shopify specifically, Razorpay's 1Razorpay app, Magic Checkout, and COD OTP verification make it the strongest choice for Indian stores.
FAQ
Can I use Razorpay and Shopify Payments together? No. Shopify Payments is not available in India. You use Razorpay as your primary (and only) payment gateway. COD is configured separately through Shopify's manual payment methods.
Does Razorpay charge a setup fee? No setup fee, no annual fee, no minimum transaction requirement. You only pay per-transaction fees.
What happens if a payment fails mid-transaction? The money is auto-refunded to the customer's account within 5-7 business days (for cards/netbanking) or instantly (for UPI). No action needed from your side.
Can I accept recurring payments (subscriptions) via Razorpay on Shopify? Yes. Razorpay Subscriptions works with Shopify's subscription apps. You'll need to use the Razorpay Subscriptions API and a compatible Shopify subscription app like ReCharge or Bold Subscriptions.
Is Razorpay PCI DSS compliant? Yes. Razorpay is PCI DSS Level 1 certified. Card data never touches your Shopify server — it's handled entirely by Razorpay's secure infrastructure.
How do I handle chargebacks? Razorpay notifies you via email and dashboard when a chargeback is raised. You have 7-10 days to submit evidence (delivery proof, customer communication). Manage chargebacks from Dashboard > Disputes.
Can I white-label the checkout page? Partially. You can add your logo, brand colors, and preferred payment method order on the Razorpay checkout form. Full white-label (removing Razorpay branding entirely) requires their Enterprise plan.
Need help with Shopify payment setup or custom integration? We've done this for 20+ Indian Shopify stores. Get in touch.