Indian Shopify store owners selling to US, UK, EU, and UAE customers face a specific problem: Shopify Payments is not available in India. This guide covers the exact setup for Indian Shopify merchants to accept international orders and get paid in INR.
The Indian Shopify Payments Problem
Shopify Payments — Shopify's native payment processor — is not available for Indian-incorporated merchant accounts. Indian Shopify merchants must use a third-party payment gateway.
For domestic Indian customers: Razorpay, Cashfree, or PayU integrate natively with Shopify India and handle UPI, domestic cards, and netbanking.
For international customers (US, UK, EU, UAE): You need a cross-border payment solution that connects to Shopify and handles international card acceptance.
Setup Options for Indian Shopify Merchants Accepting International Payments
Option 1: Separate International Checkout via Playto Pay
For Indian Shopify stores with significant international traffic:
Setup:
- Domestic checkout (Razorpay/Cashfree) handles Indian customers
- International customers directed to a Playto Pay payment link at checkout Implementation:
- Add a "International customers: pay here" button or banner
- Link to Playto Pay payment link (pre-set to correct product price)
- Customer pays by international Visa/Mastercard/Amex/Apple Pay
- You receive INR at 4% flat, zero markup, FIRA auto, daily Best for: Stores with defined international SKUs or B2B wholesale orders from international buyers.
Option 2: PayPal for International (Despite High Cost)
PayPal has native Shopify integration. International customers can pay via PayPal balance or card.
Cost: ~7-9% effective all-in (PayPal fees + forex markup).
Functional but expensive. Only use if client-facing PayPal brand recognition is critical for your specific product category.
Option 3: Stripe via US LLC (For Significant International Volume)
For Indian founders with Delaware C Corp: Stripe integrates natively with Shopify and handles international cards at 2.9%+$0.30.
Requires: US entity, US bank, FEMA ODI compliance. Total all-in cost ~5% below $20K/month.
Best for: Indian D2C brands with Delaware C Corp already incorporated for investor reasons, with significant international Shopify volume.
Handling GST for Indian Shopify International Sales
Digital goods/services exported: Zero-rated IGST under LUT. No GST on international orders.
Physical goods exported: Export under shipping bill. GST-exempt on export. IGST refund on inputs available.
Important: If you're selling digital products or subscriptions internationally via Shopify: this is export of digital services, zero-rated under LUT. Ensure your Shopify invoice template reflects this correctly.
Shipping and Payment Reconciliation for Physical Goods
For physical goods Shopify merchants:
- International card payment via Playto Pay link at order time
- FIRA generated per order
- INR settled before goods shipped (never ship before payment)
- Shipping documentation (airway bill) kept with FIRA for export compliance
FAQ
Is Shopify Payments available for Indian merchants? No. Indian-incorporated Shopify stores cannot use Shopify Payments. Use Razorpay/Cashfree for domestic INR orders and Playto Pay for international orders.
How do Indian Shopify merchants collect international payments? Options: Playto Pay payment link (4% flat, zero markup, FIRA auto) directed from checkout for international customers. PayPal native integration (7-9% effective, expensive). Stripe via US LLC (if entity exists).
Do Indian Shopify merchants need GST for international sales? Export of goods/services is GST-exempt. File LUT for digital/service exports. Physical goods export via proper shipping documentation.