Best Payment Gateways for Shopify and How to Set Them Up

A smooth and secure payment process is crucial for online shopping. In fact, many shoppers abandon their carts just because the payment step feels slow or untrustworthy. For Shopify store owners, having the right payment gateway can make a big difference in how many sales you close. It can also help build customer trust, support international transactions, and reduce issues like failed payments or fraud.

This guide explains what payment gateways are, how they work with Shopify, and which options are best for different types of stores. We’ll also show you how to set up a payment gateway and fix common issues.

What is a Payment Gateway?

A payment gateway is a tool that safely transfers customer payment details from your Shopify store to the banks involved in the transaction. It works like a virtual version of a card swipe machine. It checks if the payment is valid, prevents fraud, and processes the transaction.

Some systems, like Shopify Payments or Stripe, handle both the front-end (gateway) and back-end (processor) tasks, making things easier for store owners.

What to Look for in a Shopify Payment Gateway

• Before choosing a payment gateway, consider these features:
• Easy Shopify integration
• Strong security with fraud protection
• Support for different payment types (cards, wallets, UPI, BNPL, etc.)
• Ability to handle international currencies
• Clear pricing with no hidden fees
• Fast access to your funds

Why Your Payment Gateway Choice Matters

A good payment gateway improves customer experience and reduces cart abandonment. Customers want familiar, quick, and secure payment methods. If they don’t trust your checkout process or can’t use their preferred method, they’re likely to leave without buying.

Also, if you're selling internationally, you’ll need a gateway that works in multiple currencies and regions. And to get the most out of Shopify’s tools like POS or one-click checkout, your gateway should work well with them.

Best Payment Gateways for Shopify

Shopify Payments

• Built into Shopify and easy to activate
• No extra transaction fees
• Only available in certain countries

Best for: New stores in supported countries that want a simple solution.

PayPal

• Very popular and trusted worldwide
• Easy to connect to Shopify
• Redirects users to PayPal’s site, which can disrupt checkout

Best for: Stores with global customers or buyers who prefer PayPal.

Stripe

• Great for developers and flexible setups
• Works in many countries and currencies
• Slightly more complex to set up if not using Shopify Payments

Best for: Tech-savvy merchants or international sellers.

Authorize.Net

• Strong fraud protection and recurring billing support
• Better for high-volume businesses
• More expensive and complex for small stores

Best for: Large or enterprise-level businesses.

Razorpay, PayU, CCAvenue

• Designed for the Indian market
• Support local methods like UPI and mobile wallets
• May require manual setup or apps

Best for: Indian stores selling to domestic customers.

Klarna, Afterpay, Sezzle (Buy Now Pay Later)

• Let customers pay in installments
• You get paid upfront
• Not available in every country

Best for: Stores targeting young shoppers or selling high-ticket items.

How to Set Up a Payment Gateway on Shopify

There are two main ways to connect a payment gateway:

1. Through Shopify Admin (Standard Way)

• Go to Settings > Payments in your Shopify dashboard
• Choose a supported provider or activate Shopify Payments
• Enter the required info like API keys
• Test with a sandbox mode, then go live
• This method is simple and works for PayPal, Authorize.Net, and more.

2. Using Third-Party Apps

If your gateway isn’t listed in Shopify (like Razorpay or CCAvenue), search the Shopify App Store or follow their API setup guide. You might need a developer’s help if it requires manual integration.

Tips for Smooth Setup:

• Always test payments before going live
• Use SSL and show clear return/refund policies
• Label payment methods clearly (e.g., “Pay with UPI”)

Common Issues and Fixes

Payment Not Going Through

• Check gateway status and settings
• Review fraud filters
• Make sure you’re not still in test mode

Gateway Not Showing at Checkout

• Make sure it’s active in Shopify settings
• Confirm it’s available in your region
• Check if it’s limited by customer group or shipping method

Regional Restrictions

• Some gateways don’t work in all countries
• Choose a local option if your main gateway isn’t supported

Currency Issues

• Make sure your gateway supports your store’s currency
• Consider multi-currency settings with Shopify Payments
• Warn customers if there are currency conversion fees

Conclusion

Choosing the right payment gateway is key to your Shopify store’s success. It affects everything from customer trust to global reach. Start with a simple option like Shopify Payments if you’re unsure, and explore others based on your store’s location and audience.