How to Add a Payment Gateway in Shopify (2026 Step-by-Step Guide)

You can have the best products and the cleanest theme, but if customers can't pay the way they want, the sale dies at checkout. Setting up the right payment gateways — and avoiding unnecessary transaction fees — is one of the highest-leverage things you'll do when launching a Shopify store.

This guide covers every option: Shopify Payments, third-party gateways, regional methods like UPI and Razorpay, manual methods like cash on delivery, and the fee traps to avoid.

Quick Answer#

To add a payment gateway: Shopify admin → Settings → Payments. Activate Shopify Payments (if available in your country) for cards, and add PayPal and any third-party provider (Razorpay, Stripe, PayU, etc.) below it. Save.

Avoid the extra fee: if you use a third-party gateway instead of Shopify Payments, Shopify charges an additional transaction fee on top of the gateway's fee. Where Shopify Payments is available, using it removes that extra Shopify fee.

The Types of Payment Methods in Shopify#

Method 1: Activate Shopify Payments (Recommended Where Available)#

Shopify Payments is the built-in gateway. Using it means no extra Shopify transaction fee — you only pay the standard card-processing rate.

Step 1: Open Payments settings#

1. From your Shopify admin, go to Settings → Payments
2. If Shopify Payments is available in your country, you'll see "Activate Shopify Payments"

Step 2: Enter your business details#

1. Click Activate Shopify Payments (or Complete account setup)
2. Enter your business type, address, and personal details
3. Add your bank account for payouts
4. Submit for verification

Step 3: Choose accepted card brands#

Once active, you can toggle which card brands and wallets (Apple Pay, Google Pay) you accept.

Note: Shopify Payments isn't available in every country. If it's not offered where you are, skip to third-party gateways below.

Method 2: Add Third-Party Gateways (PayPal, Razorpay, Stripe, etc.)#

Even with Shopify Payments active, you'll usually want to add PayPal (many shoppers prefer it) and, depending on your region, a local gateway.

Step 1: Add PayPal#

1. Settings → Payments
2. Under Additional payment methods (or the PayPal section), click Activate / Set up
3. Connect your PayPal Business account

Step 2: Add a third-party provider#

1. In Settings → Payments, find Third-party providers → Choose a provider
2. Search for your gateway (e.g., Razorpay, PayU, Cashfree, Stripe via a connector)
3. Enter the API keys from that provider's dashboard
4. Save

Step 3: Understand the extra fee#

If you process payments through a third-party gateway instead of Shopify Payments, Shopify adds a transaction fee (commonly 0.5%–2% depending on your plan) on top of the gateway's own fee. Two ways to minimize this:

• Use Shopify Payments as your primary card processor where it's available
• Upgrade your Shopify plan — higher plans have lower third-party transaction fees

Method 3: Regional Methods — UPI, Wallets, and More#

In markets like India, shoppers expect UPI, wallets, and netbanking — not just cards.

• India: Add Razorpay, Cashfree, or PayU as your third-party gateway — these bring UPI, netbanking, wallets, and cards in one integration. Check current Shopify Payments availability in India before deciding.
• Europe: iDEAL, Bancontact, Klarna, and SEPA are often expected — available via Shopify Payments or regional gateways.
• Buy Now, Pay Later: Klarna, Afterpay, and similar can lift conversion on higher-priced carts.

Tip: serving multiple countries? Pair your payment setup with country-based redirects so each region sees the right store, currency, and methods.

Method 4: Manual Payments (COD & Bank Transfer)#

For cash on delivery or bank transfer (common in many markets):

1. Settings → Payments → scroll to Manual payment methods
2. Click Add manual payment method → choose Cash on Delivery (COD), Bank Deposit, or a custom method
3. Add instructions for the customer
4. Save

With manual methods, you mark each order as paid yourself once payment is confirmed.

Adding Payment Trust Signals#

Once your gateways are live, help customers trust the checkout:

• Payment icons in the footer — show the card/wallet logos you accept (many themes have a setting for this under theme customization)
• A secure-checkout badge near the add-to-cart or cart
• Clear refund/returns policy linked in the footer

These small signals reduce checkout hesitation, especially for first-time visitors.

Common Mistakes to Avoid#

Mistake 1: Paying the extra third-party fee unnecessarily#

If Shopify Payments is available in your country and you're routing cards through a third-party gateway anyway, you're paying an avoidable Shopify fee. Use Shopify Payments for cards where you can.

Mistake 2: Offering only cards in a UPI/COD market#

In India and similar markets, card-only checkout loses sales. Add UPI (via a regional gateway) and consider COD.

Mistake 3: Not testing checkout#

Always place a real test order (or use your gateway's test mode) before launch. Misconfigured API keys silently fail at checkout.

Mistake 4: Forgetting payout/bank details#

A gateway can be "active" but not pay you out if bank details are missing or unverified. Complete verification fully.

Mistake 5: Too many options#

Three to four well-chosen methods beat ten. Decision overload at checkout can hurt conversion.

Next Steps#

1. Activate Shopify Payments if it's available in your country (avoids extra fees)
2. Add PayPal and a regional gateway (UPI/Razorpay for India, etc.)
3. Add COD/manual methods if your market expects them
4. Test a real checkout before launch and add payment trust icons

Setting up a store and want it done right the first time — payments, theme, apps, and speed? Our team at Xpertshire builds and optimizes Shopify stores end to end. For weekly Shopify how-to guides like this, the blog is the place to follow.

For deeper reading:

• How to Redirect Shopify Customers by Country
• How to Create a Discount Code in Shopify
• How to Increase Average Order Value on Shopify

This guide was last updated June 2026. Payment gateway availability and fees vary by country and Shopify plan — check your admin for current options.