Shopify India: 8 Tips to select Shopify Payment Gateway

Shopify India was launched in June 2013. The global DIY (Do-It-Yourself) e-commerce hosting platform became a huge hit in India with popular brands like Raymonds, Royal Enfield and Lo’real getting on board.

Picking the right payment gateway to handle payments for your store is always an important business decision. If you are already on Shopify India or are looking to host your business on it, then here are a few pointers on how to choose a payment gateway best suited for your Shopify store.

Shopify Payment Gateway for India

In India, Shopify has partnered with 15+ payment gateways called Shopify third-party payment providers that have built ready to use plug-in integrationsIn this mini-guide, we give you 8 tips to select the best payment gateway for your Shopify India webstore.

8 Tips to pick the best payment gateway for your Shopify India store


Getting started with payments on Shopify India

If you use any of the listed third-party Shopify payment gateways, you will be able to use integrated plugins built by the payment gateway service providers using Shopify API. Using these plugins you can show all supported mode of payments on your own checkout page and track the status of payment transactions directly on your Shopify India store without having to log in to any other account.

To activate Shopify Payment gateway integration follow these steps.

1) Modes of payments available on your Shopify India store

Cashfree provides 80+ netbanking , debit & credit card, Paytm, Paypal and international modes of payment on Shopify India store. Shopify login and under payments section you will see supported Shopify payment gateways that support these modes of payment.

Payment modes available are important — a greater number of payment modes correlates with reduced cart abandonment and ultimately, a higher success rate.

Internet banking, cards (Visa, Mastercard) and UPI are some of the commonly used domestic payments options. Other popular modes of payment include mobile wallets like Paytm, Amazon Pay, Ola Money. Check if your payment gateway supports cards like Rupay, Maestro, American Express since this has a direct impact on your revenue.


Cash on Delivery

More than 50% of online sales in India are Cash On Delivery or COD. As a business, it might not be your favourite but your customers will want Cash on Delivery, particularly when they are unfamiliar to your website.

Shopify India has also recognized this trend and recently introduced Advanced COD app that helps you create a customized buying experience for COD orders.

Read here how to activate advanced Cash On Delivery for your Shopify India webstore.

However, processing refunds for Cash on delivery orders is an often reported pain point of e-commerce merchants. At Cashfree, many of our Shopify India merchants shared similar stories where they were putting in a lot of effort in collecting payment details and then finance team would arrange for refunds. We have discussed refunds management subsequently in this guide.



EMI and Pay Later options

Shopify India now supports EMI and Pay Later credit options. EMI option can really boost conversions for the high-value transactions such as electronics, jewellery etc. EMIs credit is offered by banks on credit cards, other private companies such as Zestmoney, Flexmoney also give credit facility which is cardless.

On the other hand, Buy now, Pay Later option via ePayLater or OLA Money Postpaid makes for a very fast and smooth checkout experience, suited for low ticket size transactions.

Cashfree provides the highest number of Pay Later & EMI option( both card and cardless)


2) International transactions

One of the main reasons business want to run their business on Shopify store is the global reach it provides you. If you have customers outside India, or customers in India using international cards, it is vital to support payments via international cards and other popular international modes such as Paypal.

However, it is time-consuming and quite difficult for the small to medium businesses that run on Shopify, to get themselves approved for an international payment gateway. Hence, ease of activation of international payment options assumes great significance for many Shopify India stores.



Multiple international currencies

Customers outside India will prefer to pay in their local currency to avoid additional fee on currency conversion. If you have customer outside India,  do check if your international payment gateway supports multiple foreign currencies.  


Paypal Shopify Integration

Paypal is the most trusted and preferred choice of payments for consumers worldwide.

In addition to supporting all payment options like credit cards and direct debit from bank account, Paypal also offers buyer protection. Thus offering Paypal as a checkout option can greatly increase your conversion rate.

Cashfree payment gateway provides direct Paypal integration on Shopify India webstore

Cashfree provides direct integration with Paypal. You can use your existing Paypal account and start accepting Paypal payments on Shopify store.


3) Payment Settlement duration on Shopify India

Settlement duration is the time it takes for the seller’s account to be credited after the buyer’s account has been debited. To understand payment settlement cycle let’s take the example of a customer who makes payment via his HDFC debit card.

  • Customer enters payment details
  • Information is captured by the payment gateway.
  • Payment gateway encrypts the data and securely sends it to HDFC for authentication.
  • HDFC approves the transaction and fund flows to the payment gateway and then to the merchant’s account.

This process typically takes two to four bank working days. Delays arise when banks are closed during weekends and other bank holidays.

A longer settlement cycle means that your revenue will be locked with intermediaries like banks, payment gateway provider leading to lower liquidity of funds. Go for a payment gateway that provides faster settlement cycle. 


Cashfree provides you T+1 payment gateway settlement cycle, which means when you sell on monday, your money reaches to your bank account on following Tuesday.


4) Refund processing

Return policy can vary from merchant to merchant. When an order is cancelled or a refund is to be processed, managing it in a prompt and professional way is as important a contributor to customer satisfaction as the product you are selling.

While a refund can be initiated in quick time, processing by banks and card networks, and finally crediting the customer account takes much longer — 5-7 working days on average and even longer for certain banks and cards. This becomes even harder for cash on delivery orders, where there is an added step of first collecting the bank details from the user.

Handling support queries around refunds thus end up being a major operational challenge.

Cashfree has come up with solutions to process refunds instantly. While most payment gateways allow you to ONLY accept payments, Cashfree offers Payouts as an instant, automated payment disbursal solution. This offers an easy way for businesses to pay users and allows instant processing of refunds.

For COD refunds, where customer payment details are not available you can send the customer a Cashgram to collect payment details and send the refund amount instantly.

Read here in detail how Cashgram speeds up refund processing for e-commerce businesses.

5) Customer support

Your payment gateway provider needs to work along with you as your partner. Before zeroing down to a particular payment partner do take a look at reviews and check with your peers. It is great if you can get a dedicated account manager who becomes your single point of contact for any issues that may arise.

6) Shopify India store transaction analytics

Once your business starts growing, you need a payment gateway that shares regular analytics of your transaction. These insignts are required for making informed business decisions. 

Shopify API built payment gateways help you extract analytics and take informed decisions for your shopify store.
Cashfree payment gateway dashboard showing transaction trends.

Cashfree payment gateway has designed intuitive smart analytics boards that not only show you a summary of transactions but also provide insights such as your Payments Volume, Number of Transactions, and distribution of your payments across payment methods (Cards, Netbanking, Wallets etc) and platforms (iOS, Android, Desktop) etc. You can further analyze this data grouped by hours, days, weeks or months across any timespan.

7) Transaction success rate.

Payments failing are a nightmare for any online business. The situation becomes worse when payment has been deducted from the customer account but the transaction has failed.  Not only does it obstruct that particular transaction but it affects the overall perception of your brand and your potential buyer may not come again.

Many times the payments fail due to a problem at payment gateway’s end or bank’s end. To curb this problem some advanced payment gateways bank on dynamic routing.

For example, Cashfree’s smart system detects the best performing gateway based on success rates. In the event of a downtime, scheduled maintenance break, busy bank servers the intelligent algorithm of Cashfree identifies the drop in success rates and automatically routes the transaction through another bank’s gateway. This ensures that the conversion statistics always remains on the higher end.

Cashfree helps you get hightest transaction success rate using its dynamic routing for your shopify India transactions

8) Shopify payment gateway pricing

Lastly, payment gateway pricing is an important factor that you need to keep in mind. Payment gateway charges include charges like setup fee, annual maintenance fee, along with per transaction cost. 

  • Annual Maintenance Charges (AMC): The charges for using the payment gateway. It covers the operating cost of the payment gateway. Most modern gateways waive off AMC.
  • Setup fee: This is charged to cover expenses of onboarding a new merchant or as a security deposit.Many payment gateways waive off setup fee as well.
  • Transaction Charges: Regular charges for providing the services. The charges can vary depending on the mode of payment. For example charges on using net banking will be lower as compared to charges on using international cards.

Note: On Shopify India Pricing you will see that Shopify additionally charges from .5% to 2% per transaction based on the plan selected for using e-commerce platform. So when negotiating payment gateway charges do keep in mind that on each transaction you will be paying Shopify transaction charges + payment gateway charges.

Cashfree is one of the official payment partners of Shopify India. It is trusted by thousands of Shopify store owners and is best known for

  • Fastest settlement cycle of T+1 days
  • Automated refunds processing powered by Payouts and Cashgram
  • One day activation of international payments
  • Shopify payments expert support.

Here are some of the happy customers of Cashfree running their business on Shopify India.

If you have any doubts or want to know more on how to integrate payment gateway on your Shopify India store, talk to our Shopify Payments experts.