One of the most important decisions for any Indian online store is setting up the right payment methods. Choose wrong and you'll lose customers at checkout. Choose right and your orders will increase significantly.
In India, customers have very specific payment preferences. This guide explains exactly how to accept UPI, COD, and online payments in your store — and which combination works best for Indian sellers.
Why Payment Options Matter in India
Indian customers abandon purchases if their preferred payment method is not available. Studies show that offering both UPI and COD can increase completed orders by up to 40% compared to stores that only offer one payment method.
Different customers prefer different methods:
- Young urban customers prefer UPI — instant, convenient, no cash handling
- Older customers and Tier 2/3 city buyers prefer COD — they trust paying only when the product arrives
- Business buyers sometimes need bank transfer or online gateway
UPI Payments — India's Most Popular Payment Method
UPI (Unified Payments Interface) is used by over 300 million Indians. Apps like Google Pay, PhonePe, Paytm, and BHIM are used daily by your customers. UPI payments are instant — money arrives in your account in seconds.
How StoreMaker Sets Up UPI
- Go to Settings → Payments in your admin dashboard
- Enter your UPI ID (example: yourname@upi or your phone number)
- StoreMaker automatically generates a QR code for your store
- Customers scan the QR and pay instantly from any UPI app
- No payment gateway setup. No extra fees per transaction
Your UPI QR appears on every order confirmation page automatically.
Cash on Delivery (COD) — Building Trust with New Customers
COD is essential for Indian ecommerce. First-time customers who don't know your store are much more likely to order if COD is available. They feel safe knowing they pay only when the product arrives.
Enabling COD in StoreMaker takes one click in Settings → Payments → Enable Cash on Delivery. Every order page then shows COD as an option alongside UPI.
Managing COD Orders Efficiently
- Confirm every COD order with a WhatsApp message before dispatching
- Always collect exact change — avoid making customers wait for change
- Mark COD orders as paid in your admin dashboard after collection
- For high-value orders above ₹500 — ask for a small advance via UPI to confirm genuine orders
Online Payment Gateways — For Growing Stores
As your store grows, you may want to accept credit cards, debit cards, and net banking. For this, you need a payment gateway like Razorpay or PayU.
| Gateway | Setup Fee | Per Transaction Fee | Best For |
|---|---|---|---|
| Razorpay | Free | 2% per transaction | Cards + UPI + Netbanking |
| PayU | Free | 1.99% per transaction | All payment methods |
| Cashfree | Free | 1.75% per transaction | Startups and small business |
For most small Indian businesses starting out, UPI + COD is enough to get first 100 orders. Add a payment gateway only when customers start asking for card payments.
Best Payment Setup for Indian Online Stores
- ✅ Enable UPI QR — for instant payments from urban customers
- ✅ Enable COD — for trust-building with new and Tier 2/3 customers
- ⏳ Add payment gateway later — when order volume grows
Common Payment Mistakes Indian Sellers Make
- ❌ Only accepting bank transfer — customers won't remember your account details
- ❌ Sharing UPI ID in chat only — always have it visible on your store
- ❌ No COD option — you will lose 30–40% of potential orders
- ❌ Not confirming COD orders — leads to fake orders and wasted delivery trips
Set Up Payments on Your StoreMaker Store
StoreMaker makes payment setup simple. UPI and COD are built in — no third party integrations needed. Go live in 10 seconds and start accepting payments from day one.