What Every First-Time Shopify Seller Needs to Know About Payments

Most first-time sellers on Shopify focus on products, branding, and design but overlook one of the most business-critical elements: how money comes in. If your payment experience is clunky, unreliable, or slow, it doesn’t matter how good your product is, customers will drop off, and revenue will leak.

For Indian Shopify businesses, PhonePe Payment Gateway is a no-code, plug-and-play payments solution designed to deliver seamless checkout experiences. With support for UPI, cards, wallets, and more it’s built for conversion, scale, and trust.

In ecommerce, payments aren’t the end of the customer journey, they’re the moment of truth. Smooth, secure transactions directly impact conversion rates, customer trust, and repeat purchases. If your payments aren’t optimized, you’re not just leaving money on the table, you’re blocking growth.

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

Why Payment Experience Can Make or Break a New Store?

Payment failures are the #1 reason for lost sales post-launch. In fact, 62% of customers who experience a failed online transaction will not return to the same website to try again.

Modern buyers expect a fast, seamless, and secure checkout experience with support for localized options like UPI, wallets, and cards. They won’t tolerate friction at the finish line.

Yet, first-time sellers often underestimate the importance of payments, relying on default settings or generic integrations that don’t meet customer expectations.

That’s where PhonePe Payment Gateway comes in offering a reliable, scalable, and India-first solution that ensures your store doesn’t lose out due to poor payment experience. From Day 1, it helps you retain every customer you’ve worked hard to bring in.

How to Get Payments Right After Launch?

1. Installation & Configuration

Step	Action
Install the Plugin	Find the PhonePe PG Plugin in the Shopify App Store and click Install.
Add Your Credentials	Configure the plugin with your Merchant ID and API Keys (from your dashboard).
Set Preferred Methods	Enable the payment types you want (UPI, Cards, NetBanking, Wallet).
Test Payments	Do a real test transaction to ensure everything works.

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

2. Seamless Checkout Flow

Once installed:

• Customers see multiple payment options at checkout based on merchant enablement.
• If selected, they are either:

• Redirected to PhonePe PG’s secure hosted payment page, or
• COD + order confirmation page
• Customers complete the payment using the preferred payment method.

3. Secure Payment Authorization

• When a customer pays, the plugin handles:

1. Card or UPI verification
2. Real-time fraud detection
3. Authorization & capture

• The result (success/failure) is instantly sent back to Shopify using secure webhooks.

Read More: A Quick Guide to Accepting UPI Payments for Your Online Business

4. Order Finalization

• If successful:

1. Shopify marks the order Paid
2. Customer receives a confirmation email

• If failed:

1. Shopify allows retry or selection of another method

5. Payouts & Settlement

• PhonePe PG follows a T+1 settlement policy
• All transactions and payouts can be tracked via the PhonePe Business Merchant Dashboard
• Shopify order status and payout reports stay in sync

What Happens When Payments Just Work?

• Reduced abandoned carts caused by failed or unsupported payment options.
• Positive buyer experience leads to better reviews and returning customers.

Read More: 6 Ways to Reduce Cart Abandonments With PhonePe Payment Gateway

Many new Shopify sellers underestimate just how critical a smooth payment experience is. A poorly configured or unreliable payment setup leads to drop-offs, failed checkouts, and lost revenue often before the business even gets a chance to grow.

PhonePe Payment Gateway is built to solve this. It’s a no-code, merchant-friendly solution designed to get you up and running quickly, with seamless support for UPI, cards, wallets, and more.

The result? Fewer abandoned carts, a smoother customer journey, and increased trust that drives repeat sales. Focus on building your brand and scaling your store let PhonePe PG take care of payments, fast.