How to Set Up Payment Gateways on Shopify and WooCommerce [Guide 2025]

If you run an e-commerce store, setting up a secure and reliable payment gateway is one of the most important steps to ensure your customers enjoy a seamless shopping experience. Whether you’re using Shopify or WooCommerce, the right payment gateway not only helps you accept payments easily but also boosts customer trust and conversion rates.

In 2025, online shoppers expect smooth checkout experiences, fast transactions, and multiple payment options, from credit cards and UPI to wallets and Buy Now, Pay Later (BNPL) services. If your store lacks these, you could be losing valuable sales.

In this detailed guide, I’ll walk you through how to set up payment gateways on both Shopify and WooCommerce, discuss the best options available in 2025, and share practical tips for ensuring secure and friction-free transactions.

What Is a Payment Gateway (and Why It Matters)

A payment gateway is the bridge between your eCommerce website and the customer’s payment method. It authorizes and processes payments, ensuring that transactions are secure and funds are transferred correctly.

When customers make a purchase online, the gateway:

1. Encrypts their payment information. 
2. Sends it to the bank for authorization.
   Please confirm the payment to your store so that the order can be processed. 

Without a payment gateway, your store can’t collect payments — so it’s essential to choose one that fits your business model, location, and customer preferences.

Some of the most popular gateways in 2025 include:

• PayPal
  
• Stripe
  
• Razorpay
  
• PayU
  
• Cashfree
  
• Paytm for Business
  

Key Factors to Consider Before Setting Up Payment Gateways

Before diving into the setup, consider these key points:

Supported Countries & Currencies: Ensure the gateway supports your business location and the currency of your target market.
Transaction Fees: Each provider charges differently (usually 2%–3% per transaction). Compare costs before choosing.
Payout Schedule: Some gateways offer daily settlements; others take 2–7 business days.
Integration Ease: Shopify and WooCommerce have native integrations for many gateways, but some may need API setup.
Customer Payment Options: Credit/debit cards, UPI, Net Banking, EMI, or Wallets.
Security & Compliance: Look for PCI-DSS compliance, 3D Secure, and fraud detection systems.

Part 1: Setting Up Payment Gateways on Shopify

Shopify makes payment setup incredibly easy, especially for beginners. It integrates seamlessly with over 100 payment providers, including Shopify Payments, Razorpay, PayPal, and Stripe.

Step 1: Log in to Your Shopify Dashboard

Go to your Shopify Admin Panel → click on Settings (bottom left corner) → then click Payments.

Step 2: Choose Your Payment Provider

Shopify will show multiple options based on your region. The most common ones are:

• Shopify Payments (Powered by Stripe)
  
• PayPal Express Checkout
  
• Razorpay (For India)
  
• PayU Money
  
• Cashfree Payments
  

If you’re in India, Razorpay and PayU are top choices because they support UPI, NetBanking, and Wallets.

Step 3: Set Up Shopify Payments (Recommended for International Sellers)

Shopify Payments (powered by Stripe) allows you to accept payments directly without third-party fees.
To activate it:

1. Click Activate Shopify Payments. 
2. Enter your business details, bank account, and tax information. 
3. Choose accepted payment methods (Visa, Mastercard, Apple Pay, etc.). 
4. Click Save. 

Once verified, customers will be able to pay directly on your checkout page.

Step 4: Add an Alternative Payment Gateway

If Shopify Payments isn’t available in your country, you can use Razorpay, PayU, or Cashfree.
To add one:

1. Under “Alternative Payment Providers,” click Choose a Provider. 
2. Select your gateway (e.g., Razorpay). 
3. Enter the API Key and Secret from your Razorpay account. 
4. Click Activate Razorpay. 

💡 Pro Tip: Razorpay supports both domestic and international transactions, making it perfect for Indian Shopify stores selling globally.

Step 5: Test Your Payment Gateway

Before going live, do a test transaction to ensure everything works.

• Shopify has a “Bogus Gateway” option for testing. 
• You can place a dummy order to verify a successful payment flow. 

Step 6: Enable Payment Notifications

Under Settings → Notifications, make sure payment confirmation emails are enabled so both you and your customer get instant updates.

Best Payment Gateways for Shopify (2025)

Part 2: Setting Up Payment Gateways on WooCommerce

WooCommerce gives you full control over your payment integrations since it’s open-source. You can use default options like PayPal, Stripe, or COD (Cash on Delivery), or integrate local gateways via plugins.

Step 1: Go to WooCommerce Settings

In your WordPress dashboard:

• Go to WooCommerce → Settings → Payments. 

You’ll see available options like:

• Direct Bank Transfer 
• Check Payments 
• Cash on Delivery 
• PayPal Standard 
• Stripe 

Step 2: Enable Your Preferred Payment Method

To activate any gateway:

1. Toggle the switch next to the payment method. 
2. Click Set Up or Manage next to it. 

Step 3: Add PayPal

PayPal is one of the easiest to set up.

• Install the WooCommerce PayPal Payments plugin from the WordPress repository. 
• Go to WooCommerce → Settings → Payments → PayPal. 
• Click Set Up. 
• Log in to your PayPal account and connect via API credentials. 

Once done, PayPal will appear at checkout.

Step 4: Add Stripe (for Credit/Debit Cards)

Stripe allows direct card payments on your site.

• Install and activate the WooCommerce Stripe Payment Gateway plugin. 
• Go to WooCommerce → Payments → Stripe. 
• Click Set Up and enter your Stripe Publishable Key and Secret Key. 

💡 Stripe automatically supports Apple Pay and Google Pay when available on the device.

Step 5: Add Razorpay (For Indian Merchants)

Razorpay’s WooCommerce plugin makes it simple to accept UPI, credit cards, and net banking payments.

• Install the Razorpay for WooCommerce plugin. 
• Navigate to WooCommerce → Payments → Razorpay. 
• Add your API Key ID and Secret Key. 
• Save changes. 

Your store is now ready to accept Razorpay payments securely.

Step 6: Test the Payment Integration

Switch the gateway to Test Mode (available in Stripe and Razorpay).
Place a dummy order to verify the checkout flow.

Once everything looks fine, turn off “Test Mode” and start accepting real payments.

Best Payment Gateways for WooCommerce (2025)

Tips for a Secure and Smooth Payment Experience

Even the best gateway setup can fail without proper optimization. Here’s how to make checkout seamless and secure:

1. Use HTTPS (SSL Certificate) 
   • SSL encrypts sensitive data like credit card details. 
   • If you haven’t yet, read my guide on Why You Need SSL & How to Install It. 
2. Optimize Checkout Speed 
   • A delay of even 2 seconds can reduce conversions by 10%. 
   • Learn more from my blog on Speed Optimization Tips for WordPress Websites. 
3. Enable Multiple Payment Options 
   • Offer UPI, wallets, and cards to maximize conversions. 
4. Keep Plugins Updated 
   • Outdated payment plugins can create vulnerabilities or cause failed payments. 
5. Send Automated Email Confirmations 
   • Keep your customers informed about successful payments and order status. 

Real-Life Example: How I Helped a Client Set Up a Smooth Payment System

One of my eCommerce clients, selling custom apparel, faced frequent cart abandonments during checkout. Their old WooCommerce setup only accepted PayPal, which wasn’t convenient for local buyers in India.

Here’s what I did:

• Integrated Razorpay for local UPI, card, and wallet payments. 
• Set up PayPal and Stripe for international customers. 
• Installed SSL, optimized the checkout page speed, and added order confirmation emails. 

Results after 1 month:

• Checkout abandonment dropped by 45%. 
• Sales increased by 37%. 
• Customer support requests related to payments reduced by 80%. 

This clearly shows that a good payment setup directly improves user experience, trust, and revenue.

Common Payment Gateway Errors and Fixes

Conclusion

Setting up payment gateways on Shopify and WooCommerce doesn’t have to be complicated, but doing it right can dramatically improve your store’s revenue and customer satisfaction. A secure, fast, and flexible checkout system builds trust and ensures your visitors complete their purchases without friction.

If you’re running an e-commerce store and need help with payment gateway setup, checkout optimization, or WordPress/Shopify performance, I can help you streamline the process.

🚀 Let’s Work Together
I’m Aman Aggarwal, a WordPress & Shopify developer with over 5 years of experience helping businesses build fast, secure, and conversion-optimized online stores.

👉 Visit amanaggarwal.in to get expert help setting up your payment gateways the right way, and start accepting payments seamlessly today!