Shopify India UPI Payment Integration Guide for Global Stores (Without a Local Entity)

Global Shopify stores can now offer UPI‑first checkout to Indian buyers without setting up an Indian company, by plugging into RBI‑regulated Payment Aggregator – Cross Border (PA‑CB) providers that collect in INR and settle offshore in USD, EUR and other major currencies.

India is now one of the world’s largest digital payments markets, with UPI handling well over 80% of all digital transaction volumes and processing more than 170 billion transactions in 2024 alone. For e‑commerce, UPI has become the default way to pay, displacing cards in everyday online checkouts.

Many non‑Indian Shopify stores and PSPs see meaningful traffic from India but expose only international cards. That means no UPI, no netbanking, no local rails and therefore lower trust, lower authorisation rates, and high cart abandonment among Indian customers who expect UPI‑first flows.

How payments from India to non‑Indian Shopify stores actually flow

When an Indian customer pays a non‑Indian Shopify store, the flow is effectively local in, cross‑border out:

• The buyer pays in INR using UPI, cards, or netbanking.
• A local Indian bank or payment aggregator captures the funds.
• A licensed PA‑CB provider channels the payment as a UPI cross‑border payment from India, converts to foreign currency, and settles to the offshore merchant.
• An authorised FX dealer handles UPI cross‑border FX conversion from INR to USD / EUR (or other currencies) under FEMA rules.

Key entities in the flow

• Issuing bank: The Indian customer’s bank that holds their account or card and authorises the debit.
• Local acquirer / payment aggregator: Collects the payment locally in INR through Shopify India local payment methods (UPI, netbanking, cards), connects to UPI or card networks, and passes funds to the PA‑CB layer.
• Payment Aggregator Cross Border (PA‑CB): A PA‑CB, regulated directly by RBI since October 2023, can legally acquire cross‑border payments for import/export of goods and services and remit them to overseas merchants.
• FX dealer / authorised bank: Performs currency conversion, tags the correct purpose codes, and generates documents such as e‑FIRA/FIRC that evidence the foreign inward remittance.

For a Shopify merchant, most of this is abstracted by their Shopify UPI payment gateway for non‑Indian merchants, the key is to choose a provider that is PA‑CB‑enabled.

If you want the broader India collection framework behind this flow, see our guide on "collecting payments from India".

Integration models for Shopify stores targeting India

Global companies typically choose one of three routes when planning a Shopify India UPI integration for international stores.

Model 1 – Card‑only cross‑border PSPs

• Connect to a global PSP that supports international cards only.
• Fastest to launch, no Indian entity or local contracts.
• But no ability to accept UPI payments from Indian customers on Shopify, leading to poor conversion versus local competitors.

Model 2 – Local entity + domestic gateways

• Set up an Indian company, GST registration, local bank accounts.
• Integrate with domestic gateways that support UPI, netbanking and local cards.
• High complexity: incorporation, tax filings, domestic pricing, and repatriation of funds to your home entity.

Model 3 – PA‑CB / cross‑border UPI aggregator (no local entity)

• Work with an RBI‑authorised Payment Aggregator Cross Border (PA‑CB) like EximPe or partner bank.
• Offer UPI, netbanking and cards to Indian buyers, while receiving settlement offshore in foreign currency.
• Ideal to accept UPI from India without Indian entity, especially for digital exports, SaaS, content, and marketplaces.

Model comparison at a glance

For most non‑Indian Shopify stores, Model 3 gives the best balance between speed, coverage of Indian payment preferences, and manageable compliance.

practical setup for UPI and INR pricing

At a conceptual level, here is how to enable UPI and INR on a non‑Indian store.

Step 1 – Choose a PA‑CB‑enabled provider like EximPe

Select a cross‑border or PA‑CB‑enabled payment provider that supports:

• UPI, netbanking, and domestic cards for Indian buyers
• Offshore settlement in currencies like USD, EUR, GBP
• Automated reporting and documentation for FEMA compliance

This provider will sit behind your Shopify UPI payment gateway for non‑Indian merchants.

Step 2 – Install the Shopify integration

• Install the provider’s Shopify app, plugin, or custom payment gateway.
• Configure it as a payment method for customers located in India.
• Map webhooks for payment success, refunds, and reconciliation.

Many PA‑CB‑enabled players now support UPI cross‑border payments from India, Indian netbanking, and cards in one integration, with settlement directly into your foreign bank account.

Step 3 – Use Shopify Markets setup for India INR

With Shopify Markets setup for India INR, you can:

• Display catalog prices in INR for Indian IPs or addresses.
• Restrict India‑specific payment methods (UPI, netbanking, local cards) to Indian customers only.
• Keep your base currency in USD/EUR while still giving a native experience to Indian buyers.

This combination allows you to accept UPI payments from Indian customers on Shopify, while continuing to run a single global storefront.

Why UPI‑led checkout beats card‑only for India

UPI has become the backbone of India’s digital payments, accounting for around 80–85% of all non‑cash retail transaction volumes and processing more than 170 billion transactions in 2024. Adoption spans everything from tiny offline merchants to large online marketplaces.

For global Shopify stores, a UPI‑led checkout has three big advantages:

• Higher success rates – Fewer issuer declines than international cards, and flows optimised for Indian OTP and auth patterns.
• Better trust – Customers are used to paying via PhonePe, Google Pay and Paytm, and expect to see them at checkout.
• Lower effective cost – UPI and netbanking typically come with lower processing and FX spreads than many cross‑border card setups, especially when optimised.

This is why many merchants now treat UPI‑led cross‑border collections India as their default strategy, with cards as a secondary or backup option.

Regulatory and compliance layer: PA‑CB, FEMA and documentation

In October 2023, RBI issued its circular on Regulation of Payment Aggregator – Cross Border (PA‑CB), bringing all entities that facilitate cross‑border online payments for import/export of goods and services directly under RBI supervision.

At a high level:

• Only authorised PA‑CBs (or banks) can aggregate such cross‑border payments at scale.
• These entities must handle permitted current‑account transactions, apply correct purpose codes, and ensure end‑use is compliant with FEMA.
• They must maintain detailed records, submit periodic reports, and issue documentation like e‑FIRA/FIRC to evidence foreign inward remittances.

For Shopify merchants, the practical takeaway is simple: work with an RBI‑authorised PA‑CB partner like EximPe who abstracts the compliance layer. They handle the regulatory requirements, you focus on product, pricing, and customer experience.

For a practical view of the live licence landscape, see the "2026 list of RBI PA‑CB licensees".

How EximPe fits into a Shopify India UPI stack

EximPe is an RBI‑authorised Payment Aggregator – Cross Border (PA‑CB) focused on helping global businesses and platforms accept UPI from India without Indian entity formation.

For non‑Indian Shopify stores and PSPs, EximPe:

• Enables UPI, netbanking, local cards and other Indian payment methods on top of Shopify and custom checkouts.
• Settles funds into offshore accounts in major currencies (USD, EUR, GBP, etc.) while handling FX conversion, purpose codes, and statutory documentation.
• Provides APIs and plugins so PSPs can embed UPI‑led cross‑border collections India directly into their own merchant stacks.

If you operate a global Shopify store or PSP platform and want to make India a UPI‑first growth market, it’s worth speaking with EximPe about a combined Shopify India UPI integration for international stores and platform‑level rollout.

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