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Top Payment Methods for Shopify merchants in India in 2024
2 minutes read
30 July 2024
Running an online store on Shopify is an exciting venture, especially when you start receiving orders from international customers. However, many Indian Shopify sellers face challenges. They struggle with changing exchange rates, hidden fees, and long delays in payments reaching their Indian bank accounts.
It can feel incredibly frustrating when you’re trying to grow your business and instead have to worry about where your money is and why it’s taking so long. If you're dealing with these issues, you're not alone. Many others are in the same boat, feeling the same stress and looking for an easier way to handle payments.
In this blog, we'll explore the top Shopify global payments that Indian sellers can use to receive international payments. So, read on to learn how you can receive your Shopify international payments without high fees.
1. Wire Transfer via SWIFT for Receiving International Payments
Wire transfer through SWIFT has been the go-to method for transferring international payments. It’s a trusted but expensive method. The transaction fees are usually 1-2%. Additional fixed fees can be thousands of rupees per transaction. Hidden banking fees may increase the cost, and the process takes several days.
Despite these drawbacks, many Indians choose wire transfers for their security and reliability. To know more about how SWIFT works, read our blog.
2. Credit Cards for Receiving Cross-Border Payments
Credit cards are a popular choice to receive Shopify global payments. They are quick and convenient for both parties involved. However, there are some downsides to these transactions. Their high fees, up to 2-4%, impact profit margins. Processing time may also take several days, affecting cash flow.
Credit card companies have strict security measures to prevent fraud. Credit card transactions, therefore, experience high failure rates (~20%), resulting in a loss of customer trust. Despite these downsides, credit cards provide a secure method to receive funds from your international clients.
3. PayPal: A Convenient Option for Receiving International Payments
Shopify businesses also rely on platforms like PayPal to receive their international money transfers. PayPal is convenient because you don’t need to visit a bank or deal with paperwork. You can easily open an account online by submitting the required documents.
Remember, PayPal’s support for different currencies may vary. Also, transaction fees, usually 3-5%, can affect your earnings. So, compare the fees and supported currencies before choosing PayPal.
4. Global Collections Accounts for Receiving International Payments
Businesses on Shopify now opt for global collections accounts to receive international payments. These accounts help manage funds in different currencies, which is helpful for global businesses.
Compared to traditional banks, virtual accounts offer faster and cost-effective alternatives.
With Winvesta, businesses and individuals can open a global collection account with local bank account numbers. You'll get local US, UK, EUR and CAD accounts. With these local accounts, you can receive unlimited payments. Collect payments from 180 countries in 30+ currencies and withdraw your funds to INR in as little as 1 day at charges starting at $3 + 0.99%.
How does it work?
- Create your Free Winvesta account.
- Share your Winvesta account details with Shopify.
Comparison at a Glance
| Winvesta MCA | Credit Card | PayPal | Payment Gateway | SWIFT | |
| Payer Fee | 0% | 3% | 0% | 0% | $30-$50 |
| Receipt Fee | $3 + 0.99% | 1.5%-3% | 4.4% + $30 | 3%-4.5% | $20-$40 |
| FX spread | 0% | 3%-5% | 3% | 2% | 3%-5% |
| Withdrawal to India | $0 | $0 | $0 | $0 | $0 |
| Total | $3 + 0.99% | 7.5%-11% | 7.4% + $30 | 5%-6.5% | upto 5% + $90 |
| Speed | In as less as 1 day | 2 to 7 business days | 2 to 5 business days | 2 to 7 business days | 2 to 7 business days |
| Rejection Rate | Low | High | Low | Medium | Low |
Conclusion
Choosing the right Shopify global payment method for business can help your business grow.
- Wire transfer via SWIFT is reliable but expensive and time-consuming.
- Credit cards are convenient but have high fees.
- PayPal is popular but charges fees and has currency limitations.
- Virtual global collections accounts, such as Winvesta’s, offer cost-effective solutions with faster transactions. By considering fees, speed, and convenience, you can optimize your Shopify international payments and focus on delivering excellent services.
Open your Winvesta account today!
Disclaimer: The article references PayPal, which owns its own trademark.
