Indian merchants using Shopify to sell globally face a specific challenge: Shopify Payments is not available in India, which means you can't use Shopify's built-in payment processing. You must integrate a third-party payment gateway. This guide covers your options for accepting international payments on an Indian Shopify store in 2026.
Why Shopify Payments Doesn't Work for Indian Merchants
Shopify Payments (Shopify's built-in payment processor) is available in 23+ countries but not India as of 2026. Indian merchants cannot use Shopify Payments and must integrate an approved third-party gateway.
This means:
- You pay your Shopify plan fee (Basic: $39/month) + Shopify's transaction fee (0.5-2% on Basic plans for non-Shopify Payments) + your payment gateway's processing fee
- Transaction fee is waived if you use Shopify Payments, but since it's unavailable in India, you pay it on top of gateway fees
Your Shopify Payment Options as an Indian Merchant
For Indian Customers (UPI, Domestic Cards)
Razorpay for Shopify:
Razorpay has a native Shopify integration that covers UPI, domestic Indian cards, netbanking, wallets, and Indian BNPL (Simpl, LazyPay). The most comprehensive domestic Indian payment experience on Shopify.
Cashfree for Shopify:
Similar coverage to Razorpay. Slightly lower domestic card rates (1.9% vs Razorpay's 2%). Good Shopify integration.
For International Customers (International Cards, Foreign Currency)
Playto Pay** for international Shopify orders:**
4% flat on international Visa/Mastercard/Amex from international buyers, zero forex markup, FIRA auto-generated, daily INR direct.
Integration approach: Since Playto Pay's Shopify integration may require custom setup, a practical approach for many Indian merchants:
- Shopify store for product display and domestic checkout (via Razorpay)
- Separate Playto Pay payment links for international orders (sent manually or via an international checkout flow)
- Or: Contact Playto Pay at playto.so for current Shopify integration status Razorpay International on Shopify:
Razorpay International (cross-border module) integrates natively with Shopify. ~4-5% effective on international cards (3% + 1-2% forex markup). FIRA in dashboard.
PayPal (via Shopify's PayPal integration):
Available but expensive (7-9% effective) and account hold risk. Use only if international customers specifically request it.
Shopify Transaction Fee: The Hidden Cost
Shopify charges an additional transaction fee on all orders NOT processed via Shopify Payments:
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Basic plan: 2% per transaction
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Shopify plan: 1% per transaction
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Advanced plan: 0.5% per transaction This adds to your gateway fee:
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Basic plan + Razorpay (2%): 2% Shopify + 2% Razorpay = 4% total on domestic cards
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Basic plan + Razorpay International (~5% effective): 2% Shopify + 5% = 7% on international cards
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Advanced plan + Playto Pay (4% flat): 0.5% Shopify + 4% = 4.5% total on international cards The Shopify transaction fee is a significant cost for Indian merchants. Upgrading to Advanced plan reduces it to 0.5% and makes gateway selection more impactful.
Shopify + Playto Pay: The International Order Workflow
For Indian Shopify stores with significant international order volume:
Approach 1: Separate checkout flows
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Domestic orders: Shopify + Razorpay/Cashfree (UPI, Indian cards)
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International orders: Playto Pay payment link (created per order or for standard product prices)
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Manually send Playto Pay link to international customers who reach checkout Approach 2: Subdomain international store
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Primary domain (example.com): India-focused, Razorpay
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International subdomain (world.example.com): International-focused, with Playto Pay or Razorpay International Approach 3: Single gateway for both
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Razorpay International handles both domestic and international on one Shopify integration
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Trade-off: ~4-5% effective on international (vs Playto Pay's 4% flat)
FIRA for Shopify International Orders
For each international Shopify order paid in foreign currency, you need FIRA for Indian GST compliance.
Via Razorpay International: FIRA generated in dashboard per international order.
Via Playto Pay: Auto-generated FIRA per transaction in dashboard.
Via PayPal: Separate FIRC request process.
For high-volume international Shopify stores: Playto Pay's auto-FIRA at zero per-transaction cost is most scalable.
FAQ
Is Shopify Payments available in India? No. Shopify Payments is not available for Indian merchants as of 2026. You must use a third-party payment gateway like Razorpay, Cashfree, or integrate Playto Pay for international orders.
What is the best payment gateway for Indian Shopify merchants with international customers? For domestic Indian orders: Razorpay or Cashfree (native Shopify integration, UPI + Indian cards). For international orders: Playto Pay (4% flat, zero markup, FIRA auto) or Razorpay International.
Does Shopify charge extra fees for Indian merchants? Yes. Shopify charges 0.5-2% per transaction (depending on plan) when not using Shopify Payments. Since Shopify Payments isn't available in India, all Indian merchants pay this additional fee on top of gateway fees.
How do I reduce Shopify transaction fees as an Indian merchant? Upgrade to Advanced Shopify plan ($399/month) to reduce transaction fee from 2% to 0.5%. Worthwhile if monthly GMV is above ~$20K where the fee reduction savings exceed the plan upgrade cost.
Can I sell internationally on Shopify from India without a US LLC? Yes. Razorpay International and Playto Pay both handle international card acceptance for India-incorporated businesses on Shopify without requiring offshore entities.