Razorpay is India's most popular payment gateway. Shopify is India's fastest-growing e-commerce platform. Getting them to work together properly — with UPI, EMI, COD, and proper GST invoicing — requires more than just installing an app.
This guide covers the complete integration, including the edge cases most tutorials skip.
Step 1: Set Up Your Razorpay Account
Before you touch Shopify:
- Create a Razorpay account at razorpay.com
- Complete KYC (business documents, bank account, PAN/GST)
- Get your Live API Keys from Dashboard > Settings > API Keys
- Enable the payment methods you need: UPI, cards, netbanking, wallets, EMI, COD
Note: KYC approval takes 2-7 working days. Don't start Shopify setup until your Razorpay account is live and approved.
Step 2: Install Razorpay on Shopify
- Go to Shopify Admin > Settings > Payments
- Under "Third-party providers," search for Razorpay
- Install the official Razorpay app from Shopify App Store
- Enter your Live API Key ID and Key Secret
- Enable "Test mode" first to verify the integration
Important: Shopify charges a 2% transaction fee on all third-party payment gateways if you're on Basic or Shopify plans. To eliminate this fee, you need Shopify Advanced (₹21,000/mo) or Shopify Plus. For most Indian stores, the math makes sense to stay on Basic/Shopify plan and absorb the fee until revenue justifies the upgrade.
Step 3: Configure Payment Methods
UPI (Critical for India)
In Razorpay Dashboard > Settings > Configuration:
- Enable UPI (VPA, QR Code, and UPI Intent)
- Test with a real UPI ID before going live
- UPI is the #1 payment method for Indian online stores — don't skip this
EMI
- Enable in Razorpay Dashboard under Payment Methods > EMI
- Specify minimum order amount for EMI (typically ₹5,000+)
- No-cost EMI requires coordination with your bank partner (Razorpay handles this)
COD (Cash on Delivery)
Shopify handles COD natively — you don't need Razorpay for this. Set it up under Settings > Payments > Manual payment methods > Cash on Delivery.
For COD fraud prevention, use Razorpay's COD Intelligence feature (available on Growth/Scale plans) which scores orders for fraud risk.
Step 4: GST and Invoice Setup
India requires GST-compliant invoices for all B2C transactions above ₹50,000 (B2B invoices for all amounts). Shopify's native invoicing is not GST-compliant.
Options:
- Razorpay Tax Invoice (built into Razorpay) — Generates GST-compliant invoices automatically. Enable in Razorpay Dashboard > Tax.
- Shopify apps like QuickBooks GST or Zoho Books integration — More comprehensive, syncs with accounting.
- Custom Liquid template — If you want Shopify's native order confirmation to be GST-compliant.
For most stores, Razorpay's built-in tax invoice is sufficient.
Step 5: Testing Checklist
Before going live, test every payment flow:
- [ ] Card payment (domestic and international)
- [ ] UPI payment (scan QR + enter VPA)
- [ ] Netbanking
- [ ] Wallets (Paytm, PhonePe if enabled)
- [ ] EMI (if enabled)
- [ ] COD
- [ ] Refund flow (refund a test order and verify it processes)
- [ ] Webhook delivery (verify Shopify receives order confirmation from Razorpay)
Common Issues and Fixes
Order stuck in "Pending Payment": Usually a webhook issue. Verify your webhook URL in Razorpay Dashboard > Settings > Webhooks. The URL should be https://yourstore.myshopify.com/webhook/razorpay.
Duplicate orders: Happens when Razorpay sends multiple webhook events. Enable idempotency in Razorpay settings to prevent duplicate processing.
UPI timeout errors: Default UPI timeout is 3 minutes. For higher-value orders, customers may need more time. Contact Razorpay support to extend timeout.
GST invoices not generating: Ensure your business GST number is added in both Razorpay and Shopify settings.
Need expert help? Innovatrix Infotech is a professional Shopify development agency in Kolkata handling integrations across India. Get a free consultation.
Originally published at Innovatrix Infotech
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