How to Set Up Razorpay on Shopify in 2026

Razorpay is the dominant payment gateway for Shopify stores serving India in 2026. UPI alone is over 60 percent of online transactions. The Razorpay setup on Shopify has improved significantly — here is the complete walkthrough.

Prerequisites

Razorpay account with KYC complete (PAN, GST, bank account, business proof). Without complete KYC, your Razorpay is in test mode only.

Shopify admin access (owner or staff with payment permissions).

GST number (recommended; not strictly required if turnover is under Rs. 40L).

Step 1: Activate in Shopify

Shopify admin → Settings → Payments. Click 'Add payment methods' under Additional payment methods.

Search for Razorpay → click Activate. Razorpay's setup page opens.

Login with your Razorpay credentials. Authorize the connection. Shopify pulls your API keys automatically.

Step 2: Configure payment methods

In Razorpay dashboard → Account & Settings → Payment Methods. Toggle on: cards, UPI, net banking, wallets, EMI.

EMI: enable 'Standard EMI' for 3/6/9/12 month options. This drives 12 to 18 percent of orders in apparel and electronics.

International cards: turn on if you sell globally. Razorpay supports international cards but Stripe is generally cleaner for non-India payments.

Step 3: Configure GST in Shopify

Settings → Taxes and duties → India. Add your GSTIN. Shopify configures CGST+SGST for intra-state, IGST for inter-state automatically.

Add HSN/SAC codes per product under Inventory → HS code. Without HSN, the GST invoice is non-compliant.

Test invoice: place a test order and verify GST shows up correctly on the invoice.

Step 4: Webhook setup

In Razorpay dashboard → Webhooks → Add webhook.

URL: typically auto-configured by Shopify during integration. If you need to manually set: https://your-store.myshopify.com/services/payments_callback (Shopify provides exact URL during setup).

Events to subscribe: payment.captured, payment.failed, refund.processed.

Webhooks ensure payment status syncs in real-time. Without them, Shopify sometimes shows 'pending' on orders the customer has already paid.

Step 5: Test transactions

Always do a real low-value (Rs. 1) transaction as the final test. Confirm:

Order shows as 'paid' in Shopify within seconds.

Razorpay dashboard shows the payment.

GST invoice email arrives with correct tax breakdown.

Refund flow: refund the test order in Shopify, confirm Razorpay shows the refund.

Common issues

Settlement delays: Razorpay defaults to T+2 (money in your bank 2 business days after transaction). T+1 unlocked once you have transaction volume — usually after 3 to 4 weeks.

Refunds 'stuck': always refund through Shopify, not Razorpay dashboard. Refunding directly in Razorpay does not update Shopify's order state.

EMI not showing: ensure cart minimum is above Rs. 3,000 (Razorpay's EMI minimum). Below this, EMI options are hidden.