How does Shopify access Indian payment channels?

How does Shopify access Indian payment channels?

A guide to Shopify's access to India's payment channels

As an expert in Indian payment platforms, I will explain in detail how you can access local Indian payment channels on Shopify.

Major Indian Payment Options

  1. UPI (Unified Payment Interface)

    • The most popular instant bank transfer system
    • Supports apps like Paytm, PhonePe, Google Pay, etc.

  2. wallet payment

    • Paytm Wallet
    • MobiKwik
    • Amazon Pay

  3. online bank

    • Net Banking (supports all major banks)

  4. Credit/debit cards

    • RuPay (Local Card Network)
    • Visa/Mastercard

  5. BNPL (buy now pay later)

    • Simpl
    • LazyPay

access step

Method 1: Use Shopify Payments India (recommended)

  1. Shopify has partnered with Razorpay to provide localisation solutions
  2. Enable "Shopify Payments" in the Shopify backend.
  3. Provide necessary KYC documents to complete registration (GST number required)

Method 2: Integration through a third-party gateway

Common Gateway Options:

Installation Process:

  1. Shopify App Store to search and install the appropriate plugins
  2. Configure merchant ID and API key (get from gateway)
  3. Setting up supported payment methods and currencies (INR)

UPI Special Integration Programme

For merchants who wish to accept UPI payments directly.

  1. Instamojo UPI Plugin. https://apps.shopify.com/instamojo-upi-collect-payment-link
    2.Setu.co's UPI Deep Linking Solution

KYC Requirements Notes

As per RBI regulations, all traders are required to provide.

  • Copy of PAN card
  • GST Certificate of Registration (GSTIN)
  • Aadhaar or passport copy
    -Bank account certificates

Rate reference standards

terms of payment Average handling fee
UPI 0%-0,5%
RuPay ≤1%
Visa/MC 1,5%-2,5%
electronic wallet (e.g. for money) 0,8%-2%

It is recommended to open at least three major payment methods at the same time to maximise conversions.

# An advanced guide to Shopify's access to India's payment channels (continued)

Key Strategies to Optimise the Payment Experience in India

1. Localised checkout page
- Language support: Ensure that the checkout page provides options for Hindi and major regional languages
- Currency display: mandatory display of INR to avoid additional charges for Dynamic Currency Conversion (DCC)
- UPI ID auto-recognition: integration with official authentication APIs such as `npci.org.in`.

2. Mobile-first design
"`liquid
{% comment %} Shopify Theme Code Sample - UPI Button Optimisation {% endcomment %}

Pay via UPI

“`

3. RBI Compliance Points Update (2024)
- Mandatory two-factor authentication (2FA):
- > ₹2000+ transactions must trigger OTP verification
- Additional eMandate registration required for EMI payments

- Data localisation requirements:
"`Mermaid
graph LR
Transaction data -> |must be stored in |India server
Refund Records -> |Synchronised to |NPCI Systems (National Payments Corporation)
“`

BNPL (buy now pay later) specialised integration

Recommended Solutions Matrix:

|Suppliers |Features |Applicable Scenarios |
|—|—|—|
|Simpl |Zero Interest Instalment
15 seconds approval | FMCG<₹10,000| LazyPay |30天免息期
Related to Jio |Telecommunications/Digital Products|
ZestMoney* |3-12 month instalments
High pass rate | high priced goods ≥ ₹20k|

(*Note: ZestMoney will only serve pre-qualified whitelisted merchants from 2023 onwards)

ONDC Consolidation Opportunities

Unlocking is available through the government-backed Open Network (ONDC):
1. Harmonisation of billing: consolidation of payments for orders in multiple markets
2. Logistics-linked payments: "cash on delivery" digital security programme
3. Special rate for small merchants: 0,25% additional discount for GST-registered merchants

Access Path:
"`bash
Shopify → ONEST protocol adapter → ONDC gateway → buyer's bank
“`

Troubleshooting FAQs

▸ *Error code "NPCI_102″ *
Reason: UPI VPA format is wrong or does not exist
Resolved.
1) Use [VPA checking tool](https://www.npci.org.in/vpa-validator)
2) Prompt the client to check spelling e.g. `name@oksbi`

▸ *Increase in cross-border card rejections*
Response.
✅Enable RBI approved Dynamic FX Markup (DFM)
❌ Avoid mandatory conversion to United States dollar settlement

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