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

Shopify has transformed global e-commerce, but Indian sellers still face a unique hurdle: 

Shopify Payments, the platform’s in-house payment solution, isn’t available in India.

That means Indian sellers have to rely on third-party gateways, navigating approval delays, and handling compliance requirements that merchants in other countries never think twice about.

The challenges don’t stop there. In India, where 65% of e-commerce transactions happen on mobile, customers expect fast, seamless payments. Yet sellers often face currency restrictions, high fees, failed UPI transactions, and wallet limitations.

This leads to a staggering 70% cart abandonment rate due to payment friction.

However, with the right setup, Indian Shopify store owners can turn these roadblocks into opportunities, boosting conversions, building trust, and unlocking global growth.

In this guide, we’ll cover everything you need to know to set up payment gateways for your Shopify store in India, from domestic and international options to compliance essentials, and show you how to future-proof your business for 2025 and beyond with doola’s services.

Understanding Shopify Payment Gateway Options in India

Before you can start cashing in on sales, you need to get your payments right. Let’s break down your options and what they mean for your business.

What a Payment Gateway Does  

Your payment gateway is essentially the digital cashier for your Shopify store. It securely transfers money from your customer’s card, UPI, or wallet straight into your business bank account, making every transaction safe, quick, and trustworthy.

Shopify Payments Status in India

Unfortunately, Shopify Payments isn’t available in India (yet). That means Indian entrepreneurs can’t use Shopify’s built-in solution and must rely on third-party providers to accept payments. 

The good news is, Shopify integrates seamlessly with many trusted gateways in India.

Domestic vs. International Gateways

When choosing a gateway, you’ll need to decide between two main routes:

• Domestic Gateways: Designed for Indian customers paying in INR. They support UPI, net banking, wallets, and card payments, essential for selling within India.

• International Gateways: Perfect for cross-border sales. These handle multi-currency checkout and settlements in USD, EUR, GBP, etc. helping you serve a global audience.

Mobile & Local Payment Preferences

To maximize conversions, your Shopify store must support UPI, net banking, and wallets like PhonePe and Paytm alongside card payments. Customers want choice, and offering local favorites builds instant trust.

India is a mobile-first market, and UPI dominates with over 50% of online transactions. 

📌 Pro Tip: Use Shopify’s “Payment Providers” filter for India to see all available gateway integrations and pick the best fit for your store.

Prerequisites: What You Need Before Setting Up a Shopify Payment Gateway 

Before you can start collecting payments on Shopify, you need to get a few essentials in place. To save you time, here’s a ready-to-use list of prerequisites every payment provider will expect:

• Business Registration: Your legal business structure determines which gateways you can use and how you handle compliance. You can operate as a sole proprietorship, partnership, LLP, private limited company, or a US entity if you plan to sell internationally.

• Bank Account: Domestic gateways require an Indian current account, while international gateways often need a foreign account for settlements. So make sure your account is active, supports online transfers, and is linked to the correct business name.

• PAN & GSTIN: Most Indian gateways require your PAN for identity verification and your GSTIN for tax compliance. These documents ensure your store meets legal obligations and helps avoid payment delays.

• KYC Documents: Payment providers need business proof, ID proof, and address proof to verify your store and business owner. Keep scanned copies ready to speed up the verification process.

• SSL Certificate: To ensure maximum security, Shopify provides an SSL certificate automatically, encrypting customer data and building trust at checkout.

Once you have these essentials ready, you’re all set to add a payment gateway to your store.

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

How to Add a Payment Gateway in Shopify: Step-by-Step

In this section, we’ll guide you through every click and setting you need to integrate your gateway and accept payments, whether you’re targeting Indian customers or buyers worldwide.

Step 1: Log in to your Shopify Admin

Access your Shopify store backend using your credentials. This is your control center where all payment settings are managed.

Step 2: Navigate to Settings → Payments

In the admin dashboard, scroll to Settings and click Payments. This is where Shopify organizes all your payment options, from domestic gateways to international integrations.

Step 3: Click “Choose a Provider” under Payment Providers

Here, you’ll see a full list of supported payment gateways. This includes domestic options like Razorpay, PayU, and Cashfree, as well as international options such as PayPal and 2Checkout.

Step 4: Select Your Preferred Gateway

Choose the gateway that best fits your business needs. For example, Razorpay for Indian customers or PayPal/Stripe for global sales.

Step 5: Enter Your API Key & Secret Key

Your payment provider will give you API credentials. Enter these accurately to connect Shopify to the gateway securely. 

Step 6: Save Your Settings & Run a Test Transaction

Before going live, always perform a test payment. This ensures the integration works correctly, and any issues can be fixed without affecting real customers.

Step 7: Go Live & Start Accepting Payments

Once the test passes, your gateway is ready to handle real transactions and you’re officially set up to get paid!

Now, if you’re planning to expand globally or integrate international payment solutions like Stripe, managing compliance, bank accounts, and US entity requirements can get complex. 

That’s where doola comes in, helping you form a US LLC, get an EIN, open bank accounts, and stay compliant, so your Shopify store can scale internationally without any payment roadblocks.

Best Domestic Payment Gateways for Shopify in India

In this section, we’ll break down the top domestic payment gateways for Indian Shopify sellers, highlighting their features, pricing, and performance for you to choose the best fit for your store.

1. Razorpay: The Go-To for Indian Shopify Stores

Best For: UPI-driven e-commerce and subscription businesses, who need multi-channel payment flexibility and 24/7 support.

Razorpay, one of India’s leading payment gateways and an official Shopify partner, enables seamless checkouts across UPI, cards, wallets, and net banking, making it the go-to choice for Indian Shopify sellers.

It is equipped with developer-friendly APIs, smart routing, automated refunds, marketplace split settlements, advanced analytics, and fraud detection.

Key Features

• UPI Autopay and Support for recurring charges and instant UPI checkout.

• Native tools for recurring charges, ideal for subscription boxes, SaaS, or memberships.

• Payments are automatically routed through a reliable network, minimizing failures.

• Marketplace settlements and split payments are great for multi-vendor stores.

• AI-driven fraud detection and dynamic risk rules reduce chargebacks and fraud losses.

• Real-time insights into sales, refunds, and settlements keep cash flow crystal clear.

• Razorpay supports select international cards for hybrid use.

✅ Pros

• Best UPI support in India, which drives higher conversion rates.

• Built-in subscription billing with no extra apps required.

• 24/7 customer support that’s responsive, even during high-volume sales.

• All-in-one payment ecosystem (cards, wallets, UPI, EMI, net banking).

• Smart routing that helps reduce failed transactions.

❌ Cons

• Occasional downtime during peak sales (e.g., festive rush).

• Settlement delays for new accounts until credibility improves.

• Strict KYC checks can delay account activation if documents are incomplete.

💰 Pricing & Fees

Setup Fee	0 (completely free to get started)
Annual/Monthly Fee	0 (no hidden subscription costs)
Domestic Transactions	~2% + GST per transaction
International Cards	~3% + GST per transaction
UPI/Wallets/Net Banking	Typically same as card fees; negotiable at scale
Refunds	No extra fee, but transaction charges are non-refundable
Chargebacks	INR 500–600 per case (industry standard)
Custom Pricing	Available for enterprise or high-volume merchants

With this pricing structure, Razorpay remains one of the most cost-effective payment gateways for small to mid-sized Shopify stores in India.

Settlement

• T+2 working days (transaction day + 2 days).

• High-volume, long-term merchants may negotiate faster settlement cycles.

Step-by-Step: How to Set Up Razorpay on Shopify

1. Create a Razorpay Account & Complete KYC: Sign up at Razorpay and upload documents like PAN, GSTIN, business proof, etc. Now, wait for verification, your KYC must be completed to enable live transactions.

2. Log Into Shopify Admin: Go to your Shopify dashboard → Settings → Payments.

3. Add Razorpay as a Provider: Under “Third-Party Providers”, search and select “Razorpay”.

4. Enter API Credentials: Copy your “Key ID” and “Key Secret” from the Razorpay dashboard. Paste them into Shopify to link your accounts securely.

5. Save Settings & Run a Test Payment: Save the integration and process a small test transaction.This ensures payments flow correctly before going live.

6. Go Live & Start Accepting Payments: Once testing is successful, your store is ready to accept UPI, cards, wallets, and more through Razorpay.

2. PayU: All-Rounder for Indian Shopify Sellers

Best For: Metro and tier-2 sellers seeking reliable payments, recurring support, and wide UPI-to-EMI coverage.

PayU stands out as a top Shopify partner in India, offering high payment success rates, smooth checkout, and broad coverage across UPI, wallets, and net banking.

With PayU Biz tailored for SMEs and PayU Enterprise for scaling stores, it is a growth-ready solution for Shopify sellers.

Key Features

• Robust tech infrastructure prioritizes transaction stability, helping reduce failed payments.

• Supports UPI, PhonePe, Paytm, and Amazon Pay, critical for India’s mobile-first market.

• Recurring billing for subscription boxes, SaaS, or repeat orders without third-party tools.

• AI-powered fraud detection & 3D secure authentication minimize chargebacks and fraud.

• Real-time transaction monitoring, settlement tracking, and detailed reporting.

• Accepts international cards and supports select multi-currency transactions, though not as strong as Stripe or PayPal.

✅ Pros

• High transaction success rates, reducing payment failures.

• Easy Shopify integration with official support.

• Supports a wide range of Indian payment methods including UPI and wallets.

• Strong risk management tools with AI-driven fraud prevention.

❌ Cons

• Customer support delays, especially for small merchants.

• International payment options are limited, better suited for domestic focus.

💰 Pricing & Fees

Setup Fee	0 (no upfront cost)
Annual/Monthly Fee	0 INR
Domestic Transactions	~2% + GST per transaction
International Cards	~3% + GST per transaction
UPI/Wallets/Net Banking	Typically same as card fees
Refunds	No extra fee, but transaction charges are non-refundable
Chargebacks	Around INR 500–600 (per dispute).
Custom Pricing	Available for enterprise clients with very high volume

PayU is considered slightly more expensive than Razorpay in some cases, but merchants often choose it for its higher success rates and stability during traffic surges.

Settlement

• T+2 days (transaction day + 2 working days).

• Settlement timelines may improve with account history and higher transaction volumes.

Step-by-Step: How to Set Up PayU on Shopify

Setting up PayU on Shopify works almost exactly like Razorpay.

From your Shopify admin, go to Settings → Payments → Third-Party Providers, select PayU, and enter your Merchant Key and Salt Key from the PayU dashboard as API credentials. 

Now save your changes, run a quick test transaction, and you’re ready to go live.

⚡ doola Tip for Do’ers PayU is a fantastic choice for domestic selling in India, but if you plan to scale internationally, you’ll need gateways like Stripe or PayPal. With doola, you can form a US LLC, open a US bank account, and access global gateways, giving you the best of both worlds.

3. Cashfree: Fast-Settlement Gateway with Powerful Payouts

Best For: Businesses that need bulk payouts and fast settlements.

Cashfree, an official Shopify partner, delivers smooth, versatile, and conversion-focused checkouts. It supports 120+ payment modes including UPI, cards, net banking, wallets, and even BNPL (Buy Now Pay Later) options.

It also has payout automation tools for instant vendor disbursements, bulk payouts, recurring billing, and smart routing to reduce failures. 

Key Features

• 120+ payment options including UPI, cards, wallets, BNPL, and net banking.

• Global payments support via 30+ international currencies.

• Instant Refunds with API integration.

• Cashfree Payouts for vendors, affiliates, and employee disbursements.

• Smart Routing to maximize transaction success rates.

• Recurring billing for subscription-based businesses.

• Advanced fraud detection powered by AI.

✅ Pros

• T+1 settlements, faster than many competitors.

• Excellent payout system for vendors and partners.

• Wide support for Indian and international payments.

• User-friendly dashboard with strong analytics.

❌ Cons

• Customer support can be inconsistent for small sellers.

• Some international card transactions may face approval delays.

💰 Pricing & Fees

Domestic Transactions	~2% + GST
International Cards	~3.5% + GST
UPI/Wallets/Net Banking	Usually aligned with domestic card rates unless negotiated
Setup fee	Free
Annual/monthly fee	0 INR (no AMC)
Refund charges	No extra fee (transaction fees are non-refundable)
Chargebacks	Around INR 500–600 (per case).
Custom Pricing	Available mainly for enterprise clients and high-volume sellers

Settlement Timeline

• Standard: T+1 (faster than Razorpay & PayU which are typically T+2).

• Custom settlement cycles available for enterprise accounts.

How to Set Up Cashfree on Shopify

The setup is similar to Razorpay or PayU. In your Shopify admin, go to Settings → Payments, then under Third-Party Providers, select Cashfree.

Retrieve your App ID and Secret Key from the Cashfree dashboard and enter them into Shopify’s API fields. 

Save the settings and run a quick test transaction. Once successful, your store is ready to start accepting payments via Cashfree.

RazorPay vs. PayU vs. Cashfree: What Should You Choose?

Gateway	Fees	Settlement Time	Supports UPI	Pros	Cons
Razorpay	2% + GST	T+2	✅	Strong UPI & subscriptions	Downtime issues
PayU	2%	T+2	✅	High success rates	Slower support
Cashfree	1.9%	T+2	✅	Broad method support	More documentation

Best International Payment Gateways for Indian Shopify Stores

In this section, we spotlight the top international payment gateways for Indian Shopify sellers, covering features, pricing, and benefits, so you can pick the one that scales best with your store.

1. PayPal: Global Coverage, Trusted by Shoppers Worldwide

Best For: Indian sellers targeting US, EU, or global customers leveraging PayPal’s global credibility for recurring or digital products.

With 400M+ active users across 200+ markets, PayPal acts as a bridge with international customers, especially in the US and Europe, where buyers strongly prefer PayPal over credit cards for security and ease.

It offers tools like PayPal Invoicing, PayPal Business Loans, Working Capital, and recurring billing for subscription-based models.

Key Features

• Accept payments from 200+ markets in multiple currencies.

• One-click checkout with saved customer credentials.

• Buyer and seller protection programs for dispute resolution.

• Strong fraud detection and compliance tools.

• Seamless integration with Shopify (no coding required).

• Support for recurring billing and invoicing.

• Withdraw funds to an Indian bank account in INR.

✅ Pros 

• Trusted by millions worldwide (higher conversion rates abroad).

• Easy Shopify integration.

• Strong buyer/seller protection.

• Multi-currency support and invoicing tools.

❌ Cons 

• Higher transaction fees compared to Indian gateways.

• Currency conversion charges reduce margins.

• Settlements may take longer depending on PayPal review.

💰 Pricing & Fees 

• Domestic INR transactions: Not common, PayPal is primarily for global payments.

• International cards & PayPal wallet payments: ~4.4% per transaction + fixed fee per currency + currency conversion charges (~2.5–3%).

• Setup Fee: ₹0 (free to open an account).

• Annual/Monthly Fee: ₹0.

• Chargebacks: Around $20–25 per case.

• Custom Pricing: Available for high-volume merchants.

📌 Are PayPal’s fees higher than domestic gateways?  Yes, but PayPal’s global coverage and customer trust often outweigh the costs for international sellers.

Settlement Timeline

Funds typically settle in your PayPal account instantly. Withdrawals to your Indian bank account usually take T+1 to T+3 days, depending on bank processing.

🔖 Related Read: How to Add PayPal as a Payment Method in Shopify: Step-by-Step Guide

2. Stripe Atlas: Via US Entity

Best For: Indian Shopify sellers forming a US entity to sell internationally.

While Stripe isn’t directly available for Indian entities, Shopify sellers can still unlock it through Stripe Atlas, a program that helps entrepreneurs set up a US LLC, US bank account, and Stripe account seamlessly.

With its robust APIs, you can customize checkout flows, set up subscription billing, or integrate advanced features like BNPL and Apple Pay.

Key Features

• Accept payments in 135+ currencies worldwide.

• Seamless checkout with Stripe Checkout and customizable APIs.

• Radar: Built-in fraud prevention powered by machine learning.

• Billing: Automated invoicing, recurring subscriptions, and dunning management.

• Connect: Marketplace payouts to vendors and affiliates.

• Real-time financial dashboards and revenue reporting.

• Supports modern wallets: Apple Pay, Google Pay, Link by Stripe.

• Easy Shopify integration once your Stripe account is active.

💰 Pricing & Fees 

• Domestic US cards: ~2.9% + 30¢ per transaction.

• International cards: Additional +1% fee.

• Currency conversion: +1% if conversion is required.

• Setup Fee: Free via Stripe, but Stripe Atlas costs $500 one-time (includes US LLC, EIN, and bank account).

• Chargebacks: $15 per case.

• Custom Pricing: Available for enterprise-scale businesses.

While its setup requires forming a US entity, Stripe delivers low fees, advanced tools, and unmatched scalability for serious global sellers.

✅ Pros 

• Access to advanced global payment tools.

• Lower transaction fees than PayPal.

• Perfect for SaaS, subscriptions, and marketplaces.

• Scalable infrastructure trusted by global brands.

❌ Cons 

• Not directly available for Indian entities.

• Requires forming a US company (extra costs and compliance).

• Setup may take longer compared to Indian gateways.

Settlement Timeline

The funds usually settle in your US bank account in 2 business days (standard). From there, you can transfer to an Indian account via Wise, Payoneer, or bank wire.

3. 2Checkout (Verifone): Global Payments Simplified 

Best For: Merchants who want global coverage without setting up a US entity

2Checkout (now Verifone) is a global payment processing solution that supports direct registration for Indian entities, making it a great option for businesses that want international reach without complex setups.

It offers localized checkout experiences, automatic currency conversions, subscription billing, and digital tax management (VAT/GST).

Key Features

• Accept payments in 200+ countries and 100+ currencies.

• Multiple checkout types: hosted, inline, and API-based.

• Integrated fraud detection and risk management tools.

• Subscription & recurring billing support for SaaS and DTC models.

• Localized checkout to boost conversions globally.

• Built-in VAT/GST compliance and tax management.

• Supports PayPal, credit/debit cards, and alternative payment methods.

💰 Pricing & Fees 

• Per-transaction fee: ~3.5% + $0.35 per transaction.

• Cross-border fee: Included in the above for international cards.

• Chargeback Fee: $25 per dispute.

• Payouts: Free via wire transfer or Payoneer.

📌 Stripe vs. 2Checkout: Price or Access? 2Checkout charges higher than Stripe, but it compensates with direct availability in India and easy global acceptance.

✅ Pros 

• Available to Indian entities (no US company needed).

• Global coverage in 200+ countries.

• Subscription and recurring billing support.

• Built-in tax and compliance features.

❌ Cons 

• Higher fees compared to Stripe and Razorpay.

• Settlement can take slightly longer for Indian accounts.

• Fewer customization options than Stripe’s APIs.

Settlement Timeline

• Standard settlement in 5–7 business days.

• Payouts to Indian bank accounts via wire transfer or Payoneer.

⚡ doola Tip: When to Consider US Company FormationIf more than 50% of your sales come from abroad, forming a US LLC gives you access to Stripe, lower conversion fees, and easier global settlements.

How to Accept USD and Other Foreign Currencies from India

For Indian e-commerce founders, accepting payments in USD, EUR, or GBP isn’t simple. Every transaction must comply with India’s RBI and FEMA rules, while also ensuring minimal forex losses and smooth settlements. 

Get it wrong, and you risk blocked payouts, extra taxes, or even compliance penalties. Get it right, and you’ll unlock global customers, better conversions, and up to 3–5% higher margins.

1. RBI Guidelines: Report Every Dollar as Export Income

Requirement: Under RBI rules, all foreign income must be reported as an “export of services” (for SaaS/digital products) or “export of goods” (for physical sales).

How It Works: Banks use purpose codes when crediting your account. For instance:

• P0108 → export of goods

• P0807 → export of software services

Example: If your Shopify store sells $10,000 worth of T-shirts to the US, your bank must code this as export income. Now, if it’s wrongly tagged as “domestic services,” you could be double-taxed under GST.

2. FEMA Compliance: Don’t Miss Forex Law Requirements

Rule: FEMA requires that all foreign settlements must be repatriated to India within 180 days of export.

What You Need:

• An IEC (Import Export Code) for physical goods.

Example: Let’s say you receive $50,000 in a US PayPal account. If you don’t remit it to India within FEMA timelines, you may be flagged for non-compliance, even if you’re using that money abroad.

🚩 Delays can mean frozen accounts or forex penalties.

3. Shopify Setup: Multi-Currency Checkout Made Simple

• Option 1 (With a US Entity): If you form a US LLC, you can enable Shopify Payments, which allows direct checkout in USD, GBP, EUR, and more. Settlements hit your U.S. bank account in 2–3 days.

• Option 2 (Without a US Entity): Use global gateways like PayPal, 2Checkout, or Razorpay International to enable multi-currency checkout from India.

Example: When a US customer pays $100 through PayPal on your Shopify store, PayPal first deducts its standard fee of 4.4% plus $0.30, which comes to $4.70. Plus, a foreign exchange (forex) markup of about 2.5% (roughly $2.50) is applied when converting to INR. 

After these deductions, the final amount that gets credited to your account is around $92.80, which equals approximately ₹7,420

📌 Note: Compared to Stripe via US LLC, fees could be as low as 2.9% + $0.30, saving you $1.80 per transaction. At scale, that’s thousands saved each year.

4. Settlement Tools: Choose the Right Transfer Partner

• Wise (TransferWise): Great for transferring USD/EUR to Indian bank accounts at real mid-market forex rates with transparent fees.

• US Bank Accounts: With a US LLC, you can open an account with Mercury, Relay, or Brex. This lets you hold USD and transfer when exchange rates are favorable.

Example: If you earn $10,000 monthly and wait for INR/USD to move from 83 to 82 before converting, you save ₹10,000 in just one transfer. Over a year, that’s ₹1.2 lakh extra margin, purely from timing forex conversions.

Pro Tip: The US LLC Advantage

A US LLC with Stripe + Wise is often the cheapest, most flexible setup for Indian founders selling globally.

• Stripe fees: 2.9% + $0.30 vs PayPal’s 4.4% + markup.

• Wise transfers: Flat, low fees and real forex rates.

• End result: You keep 2–3% more per transaction, which adds up fast.

Here’s how it pans out for a $10,000 sale:

Setup	Gateway	Average Fees	$10,000 Sales Net Credit
India Entity + PayPal	PayPal	~7%	$9,300
India Entity + 2CO	2Checkout	~6%	$9,400
US LLC + Stripe+Wise	Stripe/Wise	~3%	$9,700

🔖 Related Read: The Ultimate Guide to Global Business Banking

Compliance & Tax Considerations for Indian E-Commerce Businesses

Compliance in India is more than a box to tick, it’s what safeguards your growth. If you neglect it, you expose your business to frozen accounts, penalties, or even platform suspensions. 

Let’s break down the essentials every founder should know:

1. GST Registration: Collect & Claim Taxes

• Mandatory Requirement: Most e-commerce gateways (Amazon, Flipkart, Shopify with Razorpay, etc.) require you to have a valid GSTIN before onboarding.

• Why It Matters: Without GST, you can’t legally collect tax from customers, nor can you claim Input Tax Credit (ITC) on business expenses.

• Example: Say you spend ₹1,00,000 on ads (18% GST = ₹18,000). With GST registration, you can claim that ₹18,000 back as ITC. Without it, it’s gone forever—eating directly into your margins.

📌 Pro Tip: Register early, even if your turnover is below ₹40 lakhs. It gives you compliance credibility and opens doors to platforms.

2. Tax Collected at Source: Why Platforms Deduct From Your Payouts

• How TCS Works: Under GST law, marketplaces like Amazon or Flipkart deduct 1% TCS on the net value of sales.

• Example: If you sell goods worth ₹5,00,000 in a month, Amazon will deduct ₹5,000 (1%) before releasing payouts.

• What You Should Do: Reconcile TCS deducted in your GST return (Form GSTR-2A) and claim credit of this amount so it offsets your final GST liability.

3. Bank Compliance: Getting Foreign Remittances Right 

If you sell to international customers, receiving payments in USD/EUR isn’t as simple as just collecting money.

• Correct Coding: Banks need to code this income as “export of services/goods”. If wrongly coded as “domestic income,” you may lose out on export benefits and face double taxation.

• Example: A Delhi-based D2C brand selling $50,000/month globally must ensure the bank uses purpose code P0108 (for export of goods). Otherwise, this could trigger GST liabilities that weren’t meant to apply.

• Documents Needed: Import Export Code (IEC), FEMA compliance declarations, and invoice copies for proof of export.

4. US LLC Advantage: A Smart Option for Global Sellers 

Many Indian founders setting up global e-commerce stores (Shopify, Amazon FBA, or SaaS) form a US LLC to simplify cross-border compliance.

Why It Helps:

• US platforms and payment processors (Stripe, PayPal, Amazon) trust U.S. entities more.

• It avoids repeated FEMA hurdles and currency restrictions.

• Tax treaties between India and the U.S. may help you avoid double taxation.

Example: Instead of receiving $10,000/month into an Indian bank with 3–5% forex conversion costs + TCS/TDS issues, a US LLC can receive directly into a US bank account, and you only remit profits back when needed, often saving thousands yearly.

🔖 Related Read: What Is doola Total Compliance? Your Complete Guide to Stress-Free U.S. Business Compliance

Troubleshooting Payment Gateway Issues

A big slice of your revenue slipping away if not addressed.

Did you know that up to 9% of online checkouts fail due to payment issues? 

Let’s discuss the common payment gateway issues Shopify merchants face and how to fix them before they cost you more sales.

🚫 High Failure Rates 

If your customers constantly complain that their payments don’t go through, you need to dig deeper.

• Check Gateway Uptime: Gateways often publish uptime stats on dashboards or status pages. If uptime drops below 99.9%, that’s a red flag.

• Multiple Gateways as Backups: Don’t put all your eggs in one basket. For example, an e-commerce brand might use Razorpay as its primary and PayU as a fallback. If Razorpay sees a 5% spike in failures, PayU compensates and keeps conversions intact.

📌 Pro Tip: Monitor failed transactions per 100 attempts. If more than 3 fail consistently, escalate with your provider.

🚫 Settlement Delays 

If you’ve made the sale, but the money isn’t in your account yet, that’s a cash flow disruption waiting to happen.

• Raise a Ticket Quickly: If settlements are delayed beyond the standard T+2 business days, log a complaint with the gateway immediately.

• Verify KYC Compliance: Many delays stem from incomplete or outdated KYC. For example, if your bank account isn’t linked with the latest GST certificate, payouts may be withheld until updated.

Example: If you generate $50,000 in sales per month, even a 3-day settlement delay could leave $5,000–$10,000 stuck in limbo, forcing you to dip into reserves.

🚫 Gateway Rejections 

Sometimes, it’s not your fault, the gateway refuses to onboard your business or blocks transactions.

• Incomplete Documentation: Missing business PAN, GSTIN, or canceled cheque scans are common rejection triggers. Always double-check before applying.

• Low Credit History: Gateways may hesitate to approve accounts if your business is very new. For example, a 2-month-old startup without revenue proof may face stricter scrutiny than a 2-year-old brand.

Solution: Strengthen your profile, upload audited statements, furnish address proof, and show consistent transaction volume if possible.

🚫 India-Specific Nuances

India’s payment ecosystem is unique, what works globally might fail locally.

• Test UPI Thoroughly: UPI accounts for 65%+ of India’s digital transactions. If your gateway doesn’t handle UPI smoothly, expect high cart abandonment.

• Check Wallet Transactions: Wallets like Paytm or PhonePe sometimes throw errors when balances are low. Simulate these scenarios before launch.

• RBI Rules: Watch out for recurring mandate failures on cards due to RBI’s e-mandate regulations. Always test subscription payments end-to-end.

Your checkout flow is the last mile of your customer’s journey, and the worst place to stumble. So, always ensure a smooth cash flow with proactive monitoring, backups, and compliance.

Start & Scale Your Global Shopify Store With doola

When it comes to building a Shopify store that sells worldwide, payments should fuel your growth, not block it. That’s exactly what doola does best:

✅ Form your US LLC in days: We handle the paperwork, compliance, and filings so you can have a US entity ready to go faster than you thought possible, even if you’re a non-US founder.

✅ Get your EIN, US bank account, & Stripe access, fast: From getting your tax ID (EIN) to opening a US business bank account and integrating Stripe, we set everything up so you can accept payments in USD, EUR, & GBP. 

✅ Stay compliant with taxes and banking regulations: Forget the headaches of navigating IRS rules, state compliance, or foreign remittance laws. We make sure your business stays audit-proof and compliant, no matter where your customers are.

With doola by your side, you’ll never hit a payment roadblock again. Instead, you’ll have the foundation, tools, and compliance support to scale globally with confidence.

Sign up today, and turn your Shopify store into a borderless brand.

FAQs

Can I use Shopify Payments in India?

No, Shopify Payments isn’t available in India. You’ll need third-party gateways.

Which payment gateway is cheapest for Shopify sellers in India?

Cashfree usually offers the lowest transaction fees.

How do I accept international credit cards on Shopify from India?

Use PayPal, 2Checkout, or form a US entity to access Stripe.

Do I need a GST number to sell on Shopify in India?

Yes, most gateways require GSTIN for onboarding.

What’s the fastest payment gateway approval process in India?

Razorpay and Cashfree usually offer quick onboarding.

Can I get Stripe in India without forming a US company?

No, Stripe isn’t available directly in India, you’ll need a US LLC.