How to Set Up Payment Methods for your Shopify Store?

In today’s competitive e-commerce landscape, offering multiple payment options is not just a convenience it’s a necessity. Research shows that 40% of online shoppers abandon their carts if their preferred payment method isn’t available. For Shopify sellers, especially in India, this presents a clear challenge and opportunity.

While Shopify Payments is the platform’s native solution, it isn’t available in every region including India. Many merchants also require flexibility in choosing payment providers for regulatory compliance or operational efficiency. This is where PhonePe Payment Gateway emerges as a comprehensive, easy-to-integrate alternative tailored for Indian businesses.

How to Set Up PhonePe PG on Your Shopify Store?

1. Choose a reliable Shopify Payment Gateway like PhonePe PG

Read more: A Beginner’s Guide to Choosing the Right Payment Gateway

2. Create a PhonePe Business Account

• Visit the PhonePe Business Solutions page.
• Click on “Accept Online Payments” and complete the registration process by providing the necessary business details and documentation.
• Upon successful verification, you will receive your Merchant ID and API credentials via email.

3. Access Your Shopify Admin Panel

• Log in to your Shopify admin dashboard.
• Navigate to Settings > Payments.

4. Add PhonePe as a Payment Provider

• Under the Supported payment methods section, click on Add payment method.
• In the search bar, type “PhonePe PG” and select it from the list.
• Click on Install PhonePe Payment Gateway.

5. Enter Merchant Credentials

• You will be redirected to a login screen. Enter your PhonePe Merchant ID and API credentials.
• Upon successful authentication, you will be redirected back to Shopify.

6. Configure Test Mode (Optional)

• If you wish to test the integration before going live, enable Test Mode in the PhonePe settings within Shopify.
• Use the test credentials provided in the PhonePe UAT Testing Guide to simulate transactions.

7. Activate PhonePe PG

• Once testing is complete and you’re ready to go live, disable Test Mode.
• Click on Activate to enable PhonePe PG as a payment option on your store.

8. Verify the Integration

• Place a test order on your store to ensure that the PhonePe payment option appears during checkout and that transactions are processed correctly.

Read More: A Beginner’s Guide to Launching an Online Store on Shopify

Challenges in Setting Up Payments on Shopify

1. Lost Sales Due to Limited Payment Options

• Indian consumers expect flexibility with UPI, credit/debit cards, wallets, EMI, net banking. If even one preferred method is missing, customers abandon carts.
• PhonePe PG Advantage: A single integration gives you access to 100+ Indian consumer preferred payment modes, maximizing conversion opportunities.

Read More: 12 Types of Payment Methods: The Complete Guide

2. High Cart Abandonment from Poor Checkout Experience

• Redirect-heavy or slow checkout processes erode customer trust and drive up cart abandonment rates. A study by the Baymard Institute found that 17% of online shoppers have abandoned an order in the past quarter solely due to a too long or complicated checkout process.
• PhonePe PG Advantage: Our payment gateway is optimized for fast, responsive, and consistent checkout performance across payment types giving your customers a smooth experience and increasing successful transactions.

Read More: Why Your Checkout Process is Crucial to E-Commerce Success

3. Cash Flow Bottlenecks from Settlement Delays

• Delayed settlements can disrupt daily operations, inventory planning, and reinvestment cycles. For medium-sized businesses, settlement delays can reduce operating margins by up to 15% Among small businesses negatively affected by long settlement times, 40.2% reported delays in paying their vendors, and 32.4% indicated potential delays in payroll, underscoring the operational challenges posed by such financial constraints.
• PhonePe PG Advantage: With fast and transparent T+1 settlements, businesses enjoy improved liquidity and better cash flow management.

4. Dependence on Multiple Gateways Increases Complexity and Operational Costs

• Many businesses end up integrating different gateways for UPI, cards, net banking, and wallets leading to scattered data, reconciliation hassles, higher operational overhead and cost.
• PhonePe PG Advantage: With PhonePe PG, you don’t need multiple gateways. We offer all major Indian payment methods on one platform including UPI, cards, wallets, net banking and more. Our unified dashboard gives you real-time visibility into transactions, refunds, and settlements so your finance, ops, and growth teams work smarter, not harder. All at zero processing fees, zero hidden costs, zero setup charges

5. Compliance, Security & Checkout Performance Burden

• Delivering a secure, regulation-compliant checkout while maintaining speed and UX is a serious challenge. PCI-DSS, fraud control, tokenization, and dynamic handling all require deep expertise and constant updates.
• PhonePe PG Advantage: PhonePe PG is built to handle this complexity for you. From device tokenization on PhonePe PG Bolt and PCI-DSS compliance to fraud detection and native OTP flows, we take care of end-to-end security and performance optimization.
• Key features that set us apart:CVV-less and Native OTP flows for faster card payments, Dynamic Routing to ensure optimal success rates, Payment Retries to recover failed transactions, Availability Check for real-time gateway status, Half-page SDK that blends seamlessly with your Shopify checkout, Device Tokenization for secure, fast checkout experiences and more

6. Lack of Localized Support and Customization

• Global gateways often lack region-specific features or customer support that understands Indian nuances.
• PhonePe PG Advantage: We’re built for India, by India’s leading payment brand. You get responsive local support, India-specific payment solutions, and ongoing optimization tailored to Indian consumer behavior.

7. Brand Trust and Credibility

• Lesser-known or international gateways may raise trust concerns among Indian consumers.
• PhonePe PG Advantage: Leverage the PhonePe brand used by over 600 million users nationally to inspire trust and familiarity at the point of payment, increasing transaction success rates.

PhonePe PG is more than just a payment gateway it’s a strategic enabler for Shopify merchants in India. With features like device tokenization, native OTP authentication, dynamic routing, and a half-page SDK, it ensures high performance, maximum reliability, and user-friendly checkout experiences.

Unlike global providers, PhonePe PG offers zero setup fees, zero hidden charges, and zero processing fees, making it one of the most cost-effective and scalable solutions in the market.

Whether you’re scaling up or just starting out, PhonePe PG equips your Shopify store with the power to convert more, operate faster, and build trust all in one platform. From improved cash flow to reduced operational complexity, and higher checkout success rates, it’s designed to help Indian businesses thrive.