UPI payments on Shopify India have become the single most important checkout feature for any Indian merchant. With over 14 billion UPI transactions processed every month in India, customers expect to see their preferred UPI app — PhonePe, Google Pay, or Paytm — the moment they reach your checkout. If your Shopify store does not offer UPI, you are leaving a significant portion of Indian revenue on the table. This guide walks through exactly how to enable UPI on Shopify, which payment gateways to use, and how to display QR-based UPI options that reduce payment drop-offs and improve conversions.
Why UPI Dominates Indian Online Payments
The National Payments Corporation of India (NPCI) reported that UPI crossed ₹20 lakh crore in transaction value in a single month in 2025. Customers in India overwhelmingly prefer UPI because it is instant, free, and works with every bank account through a single VPA (Virtual Payment Address). Unlike credit cards, UPI does not require memorising card numbers, and unlike wallets it does not require pre-loading funds. For Shopify merchants targeting Indian consumers — whether selling fashion, electronics, home goods, or digital products — UPI acceptance is non-negotiable. Studies by payment processors show that stores without UPI see 30–40% higher cart abandonment compared to stores with a complete UPI checkout experience.
Enabling UPI via Razorpay on Shopify
Razorpay is the most widely used payment gateway for Shopify stores in India and it natively supports UPI, including UPI Intent (which opens the customer’s UPI app directly) and UPI Collect (which sends a payment request to the customer’s VPA). To set it up: log in to your Shopify admin, go to Settings → Payments, scroll to Third-party providers, and search for Razorpay. Install the Razorpay Shopify app, enter your Razorpay Key ID and Key Secret from your Razorpay dashboard, and enable the payment methods you want. Under the Razorpay dashboard, navigate to Settings → Payment Methods and ensure UPI is toggled on. Razorpay will automatically surface PhonePe, Google Pay, BHIM, and Paytm UPI options at checkout. Razorpay also supports UPI Turbo, a newer flow that completes payments without leaving the merchant’s site, which can improve mobile conversion by up to 15%.
Enabling UPI via Cashfree on Shopify
Cashfree Payments is an equally strong alternative and often boasts higher UPI success rates for Tier 2 and Tier 3 cities. Install the Cashfree Shopify plugin from the Shopify App Store, connect your Cashfree merchant account, and enable UPI under your payment method settings. Cashfree’s UPI stack includes UPI Intent, UPI QR, and their proprietary “UPI One Click” flow. Cashfree also offers instant settlements, which can be a meaningful cash-flow advantage for growing stores.
Displaying a UPI QR Code at Checkout
For customers on desktop, a UPI QR code is the most frictionless option — the customer simply opens any UPI app on their phone, scans the QR, and pays. Both Razorpay and Cashfree generate a dynamic QR code per transaction that is tied to the order amount and expires after a set time window. No additional Shopify customisation is needed to show the QR; the gateway handles rendering it within its hosted payment page. If you have a custom checkout extension, you can embed the QR via the gateway’s JS SDK. Make sure the QR is displayed prominently above the fold on the payment page so customers do not have to scroll to find it.
Reducing UPI Payment Drop-offs
Even with UPI enabled, drop-offs happen. The most common causes are: UPI app timeout (customer takes too long to approve), VPA mismatch errors, and bank server downtime. To minimise these, configure a payment retry prompt so that if a UPI transaction fails, the customer is immediately offered an alternative (card, netbanking, or a different UPI app) rather than landing on a hard error page. Razorpay’s “smart retry” feature handles this automatically. Also display trust signals near the UPI payment option — a NPCI UPI logo, a “100% secure” badge, and a short “Pay in 10 seconds with your UPI app” instruction text. These small additions reduce hesitation and increase successful completions.
Frequently Asked Questions
Does Shopify natively support UPI without a third-party gateway?
No. Shopify Payments is not available in India, so you must use a third-party gateway like Razorpay or Cashfree to accept UPI. Both integrate seamlessly with Shopify and are approved by the RBI.
Are there transaction fees on UPI payments?
UPI is free for customers. For merchants, Razorpay and Cashfree charge approximately 2% per UPI transaction (0% for transactions below ₹2,000 on some plans). Check the current pricing on each gateway’s website as rates are revised periodically.
Can I accept UPI payments on a Shopify free trial?
You can set up and test UPI in Razorpay’s test mode during a Shopify trial. Live UPI payments require an active Shopify plan and a KYC-verified Razorpay or Cashfree merchant account.
Need help setting up UPI or optimising your full Shopify checkout experience for Indian customers? OneOnic’s team specialises in Shopify development for Indian markets and can have your store fully payment-optimised within days.
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