How to Set Up Razorpay on Shopify India — Step-by-Step Guide (2026)
The complete guide to integrating Razorpay with your Shopify store — UPI, cards, EMI, troubleshooting, and post-setup tips. Takes 45 minutes. Works for all Indian business types.
Razorpay on Shopify is a payment gateway integration that enables Indian Shopify store owners to accept payments via UPI, credit and debit cards, net banking, EMI, and BNPL at checkout. It is the most popular payment gateway for Shopify India because it supports all major Indian payment methods, integrates natively with Shopify's payment settings, and provides a GST-compliant reconciliation dashboard — with no monthly fee, only a per-transaction charge of 2% for cards and 0% for UPI (currently).
If you're running a D2C brand in India on Shopify, your payment gateway is the single most important technical decision you'll make. A broken payment setup means lost sales — not just abandoned carts, but customers who never come back.
Razorpay is used by over 8 million Indian businesses and is the default choice for most Shopify stores in India. This guide walks you through the complete setup — from creating your Razorpay account to going live — plus the troubleshooting steps we use at Cognito IT Consultancy when things break.
What is Razorpay and Why Use It for Shopify India?
Razorpay processes over ₹7 lakh crore in annual transactions and powers payments for Swiggy, BookMyShow, and thousands of Indian D2C brands. For Shopify India specifically, its advantages over alternatives are:
- Native Shopify app — one-click install from the Shopify App Store, no custom code needed
- All Indian payment methods — UPI, cards (Visa, Mastercard, RuPay, Amex), net banking (65+ banks), EMI, BNPL (LazyPay, ZestMoney), and wallets
- GST-compliant dashboard — settlement reports with GSTIN breakdowns, export-ready for your CA
- Instant payouts — Razorpay X instant settlement available for eligible merchants (T+0 instead of T+2)
- International payments — accepts cards from 100+ countries in 90+ currencies (with higher 3% international fee)
Before You Start — What You Need
| Requirement | Details | Mandatory? |
|---|---|---|
| Shopify store | Any paid plan (Basic, Shopify, Advanced) — not Starter | Yes |
| Razorpay account | Free — create at razorpay.com with business email | Yes |
| Indian bank account | Current account preferred; savings accepted for sole props | Yes |
| PAN card | Business PAN (company) or personal PAN (sole proprietor) | Yes |
| Business proof | GST certificate, incorporation cert, or shop establishment | Yes |
| GST registration | Required for B2B invoicing; adds trust for D2C | Recommended |
| Brand website/domain | Razorpay reviews your store URL during KYC | Recommended |
Start your Razorpay KYC the same day you start building your Shopify store. KYC takes 2–3 business days. You can complete your entire Shopify setup in test mode while KYC is being approved — so you're ready to go live the moment KYC clears.
8-Step Razorpay Shopify Setup Guide
Create Your Razorpay Account
Go to razorpay.com → click Sign Up. Enter your business name, email, and mobile number. Choose your business type from the dropdown:
- Private Limited Company — if you're incorporated under Companies Act
- LLP — Limited Liability Partnership
- Sole Proprietorship — most common for early-stage D2C founders
- Partnership — if you have a registered partnership deed
Complete KYC Verification
After account creation, Razorpay will prompt you to complete KYC. Navigate to Dashboard → My Account → Business Details. Upload the following:
- Business PAN — company PAN if Pvt Ltd / LLP, personal PAN if sole proprietor
- Bank account details — account number and IFSC, verified via penny drop
- Business proof — GST certificate (preferred), incorporation certificate, or shop establishment act registration
- Business address proof — utility bill, rental agreement, or GST certificate
- Website URL — your Shopify store URL (can be in maintenance mode — Razorpay just checks it exists)
Generate Your API Keys
In your Razorpay Dashboard, go to Settings → API Keys → Generate Key. You'll get two values — keep these safe:
Key Secret: XXXXXXXXXXXXXXXXXXXXXXXX // shown ONCE — copy immediately
Install Razorpay on Shopify
There are two ways to install Razorpay in Shopify — use Method A (recommended):
Method A — Via Shopify Admin (recommended):
- Go to Shopify Admin → Settings → Payments
- Under "Third-party payment providers," click Choose third-party provider
- Search "Razorpay" and click it
- Click Install & activate
Method B — Via Shopify App Store:
- Search "Razorpay" in Shopify App Store and click Install
- This installs the same app — use Method A if you want to avoid the app store redirect
Enter API Keys in Shopify
After installing Razorpay, you'll see the settings page inside Shopify Admin. Enter your credentials:
Account Secret: XXXXXXXXXXXXXXXXXXXXXXXX
Mode: Live // switch to Test for testing first
Click Save. Razorpay will validate the keys — you'll see a green confirmation if correct.
rzp_test_ keys in Live mode or rzp_live_ keys in Test mode. The prefix tells you which environment the key belongs to.Enable Payment Methods in Razorpay Dashboard
Go to Razorpay Dashboard → Settings → Payment Methods. Enable the methods relevant to your business:
- UPI — enable immediately. 0% fee, highest conversion for Indian mobile users
- Credit/Debit Cards — Visa, Mastercard, RuPay, Amex. Enable all
- Net Banking — 65+ Indian banks. Enable all
- EMI — no-cost EMI available for 12+ months. Critical for AOV above ₹3,000
- BNPL — LazyPay, ZestMoney, Simpl. Increases conversion for ₹1,000–₹5,000 orders
- Wallets — Paytm Wallet, Amazon Pay, Freecharge. Lower priority but worth enabling
Configure Webhooks
Webhooks ensure Razorpay sends payment status updates to your Shopify store automatically — critical for order confirmation and inventory deduction. Without this, a payment can succeed on Razorpay but Shopify never receives confirmation.
Go to Razorpay Dashboard → Settings → Webhooks → Add New Webhook:
Secret: [generate a random string]
Events to select:
payment.captured // payment succeeded
payment.failed // payment failed
refund.created // refund initiated
Test Order → Go Live
Before switching to live mode, place a complete test order:
- Switch Razorpay to Test Mode in Shopify payment settings
- Add a product to cart, go to checkout, select Razorpay
- Use Razorpay's test card details to simulate payment success
- Verify: Shopify order created ✓, confirmation email sent ✓, Razorpay dashboard shows payment ✓
- Test a payment failure — verify the customer is redirected back to cart, not a blank page
Once tests pass, switch both Razorpay and Shopify to Live Mode and place a real ₹1 test order to confirm the end-to-end production flow.
Razorpay Payment Methods — India Coverage
Here's the complete breakdown of what Razorpay supports on Shopify India, with fees and notes:
| Payment Method | Transaction Fee | Settlement | Best For |
|---|---|---|---|
| UPI (all apps) | 0% (currently) | T+2 days | Orders under ₹1 lakh — highest conversion |
| Debit Cards (Indian) | 0.9% – 1.75% | T+2 days | All AOV ranges |
| Credit Cards (Indian) | 1.8% – 2% | T+2 days | Higher AOV + EMI orders |
| Net Banking (65+ banks) | 1.5% – 2% | T+3 days | Customers who prefer bank transfer |
| No-Cost EMI | Bank subvention cost | T+2 days | Orders ₹3,000–₹30,000 |
| BNPL (LazyPay, Simpl) | 1.5% – 2.5% | T+2 days | Orders ₹1,000–₹5,000 |
| International Cards | 3% + currency conversion | T+2 days | NRI buyers or global D2C |
| Wallets (Paytm, etc.) | 1.8% | T+2 days | Customers with pre-loaded wallet balance |
Shopify also charges its own transaction fee on top of Razorpay's fee: 2% on Basic, 1% on Shopify plan, 0.5% on Advanced. On a ₹1,000 order via cards, you're paying ₹20 (Razorpay) + ₹20 (Shopify Basic) = ₹40 total. Upgrading to Shopify Advanced plan saves ₹15/order at scale — breaks even at roughly 200 orders/month.
Real India-Specific Insights — From 40+ D2C Launches
COD Is Not Razorpay's Job
This is the most common misconception we encounter. Razorpay handles digital payments only. For COD on your Shopify store, you need to enable it separately through:
- Shopify's native COD — enables the option at checkout but has no verification or carrier integration
- Shiprocket / NimbusPost — logistics partners that handle COD collection, OTP verification, and remittance back to you
Always pair COD with OTP verification to reduce fake orders. Without verification, expect 20–35% RTO (Return to Origin) on COD shipments in Tier 2–3 cities.
🏪 Full Shopify Store Setup with COD →When NOT to Use Razorpay on Shopify
⚠️ Consider an Alternative If:
Razorpay vs Cashfree for Shopify India — Full Comparison
| Feature | Razorpay | Cashfree |
|---|---|---|
| Shopify Integration | Native app (official) | Available but less polished |
| Setup Difficulty | Easy (45 min) | Moderate (1–2 hours) |
| UPI Fee | 0% (currently) | 0% (currently) |
| Card Fee | 2% | 1.75% (negotiable) |
| Net Banking Fee | 1.5%–2% | 1.4%–1.9% |
| EMI / BNPL | Yes — LazyPay, ZestMoney, Simpl | Yes — similar coverage |
| International Cards | 3% | 2.9% + lower forex |
| Dashboard Quality | Excellent — reports, analytics, payouts | Good but less detailed |
| Settlement Speed | T+2 (T+0 via X) | T+2 (T+0 available) |
| Instant Payouts | Razorpay X | Cashfree Instant Settlement |
| GST Invoice Support | Built-in | Limited |
| Best For | Under 10,000 orders/month | Above 10,000 orders/month |
🚨 Razorpay Shopify Troubleshooting Guide
Razorpay payment succeeds but Shopify order is not created
Customer pays successfully on Razorpay but no order appears in Shopify Admin. The customer sees a "Thank you" page but your dashboard shows nothing. This is a webhook failure.
payment.captured event enabled. If a webhook exists, check the "Failed" tab for recent errors — re-trigger failed events manually."Invalid API Key" or payment gateway not appearing at checkout
Razorpay doesn't appear as a payment option at checkout, or customers see an error when trying to pay. Usually an API key mismatch.
rzp_live_ (not rzp_test_) when in live mode. Re-enter both Key ID and Key Secret and save. If you lost the Key Secret, generate a new key pair in Razorpay Dashboard → Settings → API Keys.UPI not showing at Shopify checkout
Customers can't see UPI as a payment option even though you've set up Razorpay. Common after initial setup.
Payment fails at checkout — "Payment failed, please try again"
Customers see a generic payment failure. This can be gateway-side, bank-side, or Shopify config issue.
Razorpay checkout popup not loading (blank white box)
The Razorpay payment modal opens but shows a white/blank screen and never loads the payment form.
*.razorpay.com. Check your theme's content_security_policy.liquid file. Also disable browser extensions that block scripts (uBlock Origin, Privacy Badger) and test in a clean incognito window first.Razorpay settlement not received — money stuck
Payments are captured on Razorpay but the settlement hasn't arrived in your bank account after 3+ days.
EMI option not appearing at checkout
You've enabled EMI in Razorpay settings but customers don't see it at checkout.
Duplicate orders created in Shopify
A customer places one order but two or three orders appear in Shopify Admin for the same payment.
Post-Setup Optimisation — 6 Things to Do After Razorpay Goes Live
Add a Prepaid Discount (₹50–₹100) +15–25% prepaid orders
Display a discount at checkout for customers who choose prepaid (UPI, card, netbanking) over COD. Set this in Shopify Discounts or a COD conversion app. This shifts 15–25% of COD orders to prepaid within the first month — improving your cash flow and reducing RTO.
Enable No-Cost EMI for High-AOV Products +18–25% conversion
For products priced above ₹2,000, prominently display "No Cost EMI available" on product pages — not just at checkout. Indian buyers make the decision to purchase before reaching checkout. In Razorpay dashboard, activate no-cost EMI with your preferred bank partners.
Set Up Abandoned Cart Recovery via Klaviyo +10–15% recovery
Many customers reach the payment step and drop off — often due to UPI app friction or card OTP delays, not intent to abandon. Klaviyo's Shopify integration captures abandoned checkouts and sends a reminder sequence: WhatsApp at 1 hour, email at 4 hours, email with discount at 24 hours.
📧 Set Up Klaviyo for Shopify →Add Trust Badges Near the Payment Button +8–12% checkout completion
Place "Secured by Razorpay", "256-bit SSL Encrypted", and "COD Available" badges directly below the payment button — not in the footer. Indian D2C buyers look for reassurance at the moment of payment. Most Shopify themes allow custom HTML in checkout via the "additional content" field in checkout settings.
📈 Full CRO Audit for Your Store →Enable Razorpay Magic Checkout Reduces checkout time by 60%
Magic Checkout is Razorpay's 1-click checkout for returning Razorpay users — pre-fills name, mobile, address, and saved cards. Available for Razorpay-powered stores. Activate from Razorpay Dashboard → Products → Magic Checkout. It works within Shopify's standard checkout flow without custom development.
Monitor Razorpay Analytics Weekly Identifies revenue leaks
Razorpay Dashboard → Analytics shows payment method split, failure rates by method, and peak payment times. Check weekly: if card failure rates exceed 8%, investigate with your bank. If UPI success rates drop, check for Razorpay network issues. Use this data to prioritise which payment methods to promote at checkout.
🤖 Marketing Automation After Payments →✅ Razorpay Shopify Setup — Quick Checklist
Download the Full Razorpay + Shopify Setup Checklist PDF
The complete checklist our team uses for every new Shopify store in India — Razorpay setup, COD configuration, payment testing, and post-setup optimisation in one printable doc.
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🔗 Related Services from Cognito IT Consultancy — Verified Shopify Partner, Bangalore
❓ FAQs — Razorpay on Shopify India
There is no monthly fee to use Razorpay with Shopify. Razorpay charges a per-transaction fee: 2% for domestic cards and net banking, 0% for UPI (currently), and 3% for international cards. Shopify also charges its own transaction fee (0.5%–2% depending on your plan) on top of Razorpay's fee unless you're on Shopify Advanced.
The five most common causes: (1) wrong API keys — using test keys in live mode; (2) KYC not fully approved — check for email from Razorpay; (3) webhook not configured — payment succeeds but Shopify doesn't get notified; (4) Razorpay app deactivated by a recent Shopify app conflict; (5) browser cache issue — test in incognito first. Fix in this order before contacting Razorpay support.
Yes. After integrating Razorpay with Shopify, go to Razorpay Dashboard → Settings → Payment Methods and enable UPI. Customers see UPI at checkout alongside cards and net banking. UPI currently has 0% transaction fee on Razorpay — it's both your cheapest and highest-converting payment method for Indian buyers.
Razorpay KYC typically takes 2–3 business days for sole proprietors with complete documents. Private limited companies take 3–5 business days. You can use test mode to build and test your entire Shopify integration while KYC is in progress — so you're ready to flip to live the moment KYC is approved.
No — Razorpay handles digital payments only. For COD on Shopify India, enable it through your logistics partner (Shiprocket, NimbusPost, or Delhivery) or Shopify's native COD option. Always use OTP verification to reduce fake COD orders, which can otherwise account for 20–35% of COD shipments in Tier 2–3 cities.
Razorpay is better for most Indian Shopify stores: superior Shopify integration, better dashboard, and wider payment method support. Cashfree has slightly lower transaction fees at scale (above 10,000 orders/month) and better international settlement. For brands under ₹50 Crore annual GMV, Razorpay is the safer default. Consider Cashfree only when you've validated product-market fit and are optimising margins.
UPI failures on Razorpay are usually caused by: (1) UPI not enabled in Razorpay dashboard payment methods — toggle it on; (2) customer's UPI app daily limit exceeded — they should try a different app or card; (3) webhook not configured — payment goes through on Razorpay's end but Shopify doesn't receive confirmation. Fix (3) first as it's the most common cause of "UPI payment failed" reports from customers who were actually charged.
🚀 Need Help Setting Up Razorpay on Shopify?
We set up Razorpay, COD, EMI, and the full payment stack for Indian D2C brands — getting you from zero to live in one week.
- Complete Razorpay + COD setup
- Payment testing & troubleshooting
- Post-setup CRO optimisation
- Klaviyo + WhatsApp automation
