Best Payment Gateways To Use For Dropshipping


Young entrepreneurs are embracing dropshipping as a very popular business strategy since it provides a low-cost, low-risk way to generate income online. There are plenty of payment gateways and other technology available to aid you in this process, and it’s a fantastic way to start a business. A payment gateway is a device that enables an online store customer to make a purchase. Payment gateways manage all financial transactions for an online store. Payment gateways ensure that the payment data is handled safely and that the money is taken out of the buyer’s account. The funds are then deposited into the drop shipper’s account and made available for withdrawal from your bank account. The payment gateway keeps a tiny portion of the transaction amount as their service charge. If you are building up a new online business and seeking the finest payment gateways for dropshipping, then here are the details that you need to know.

Available Payment Getaways For Dropshipping

how payment gateways work


There are various payment gateways one could use for making their dropshipping business. Let us look at some of the most popular and reliable ones.

  • Paypal – PayPal is perhaps the most well-known payment processor among both drop shippers and the general public. Who doesn’t know it? A lot of customers are familiar with and confident in this payment provide makes it a fantastic complement to your dropshipping company.

         Pros: Well-known among people worldwide, easy to use

  • 2checkout – 2Checkout is also one of the most trusted payment gateways for dropshipping and is accessible in more than 87 countries. It works with all major credit cards, including Visa, MasterCard, Diners Club, American Express, and other cards.

          Pros: Supports multiple languages, PCI compliance, multi-currency payouts

  • – is available in over 33 different countries. It is among the longest-running and most reliable payment gateways online. It also offers several extensions to make it easy to integrate into WooCommerce stores. also offers low transaction fees for dropshipping and ecommerce stores.

          Pros: Advanced fraud protection easy checkouts, digital invoicing.

Best Payment Gateways For Dropshippers In India Including UPI 

Let us look at some of the best-suited payment gateways for Indian dropshippers. 

  • RazorPay: RazorPay enables dropshippers to access wallets like JioMoney and MobiKwik as well as debit and credit cards, online banking, UPI, and wallets. Unacademy, UrbanClap, Zoomcar, Groofers, and BookMyShow are examples of well-known companies that have used the Razorpay payment platform. RazorPay is one of the most well-known payment gateways in India.
  • Instamojo: Instamojo is a very trusted full-stack SME platform. It is super easy to start an online business with Instamojo because it offers secure payment gateways, integrated marketing tools, and more. Instamojo helps more than 15 lakh independent enterprises in India with its reliable payment gateway. With the help of Instamojo’s Web platform, dropshippers can create their store and link a simple payment gateway to it. Instamojo also handles CRM, analytics, and shipping.
  • GooglePay: Another reputable and well-known payment option that would be ideal for your dropshipping company is Google Pay. If you have ever used Google Pay for yourself, you are aware of how quick, simple, and practical it is to make a payment. Additionally, it enables you to keep and store your credit card information on your Google Account, which speeds up online payments for goods, apps, and services.

Payment Gateway For Shopify 

shopify payments

The Shopify platform and Shopify Payments are connected. It’s easy to set up dropshipping on Shopify. It just requires a few clicks. You can kick off your dropshipping business journey with it. Shopify offers a variety of benefits, such as.

  • Being incredibly easy to set up
  • accepts most major credit cards
  • Payouts are done every 3 business days.

Payment Gateway Options For Woocommerce

WooCommerce has a “WooCommerce Payments” gateway created by itself that enables you to make your payments on the website successfully. WooCommerce payments are fully integrated into Woo. It accepts all the major credit and debit cards and other local payment options with no extra charges. This platform offers other popular payment gateways like Amazon Pay, Stripe, and AfterPay.

Real-Life Examples of Successful Dropshipping Businesses Utilizing Payment Gateways

The selection of an appropriate gateway for payment in the world of dropshipping can be a pivotal factor in your business’s success. To get first-hand experience as to how entrepreneurs leverage different payment gateways in their dropshipping ventures, we give you real-life case studies and success stories. Let’s dive into these inspiring examples: Let’s dive into these inspiring examples:

1. Bella’s Boutique: Using PayPal to Grow a Business

Bella, the founder of Bella’s Boutique, set out on her entrepreneurial journey to start an online boutique dealing in handmade jewelry. At the beginning, it was not easy for Bella to handle inventory and orders. PayPal, which is her preferred payment gateway, has helped a lot.

Insights: Bella discovered that PayPal was an accepted payment method, which raised customer confidence and ultimately increased the number of conversions.

Challenges Faced: The very beginning was the hardest part for Bella, as she struggled with managing the inventory properly. However, Bella soon streamlined her operations by integrating PayPal which gave her more time to market her products and to better serve her customers.

Strategies Employed: Through PayPal’s invoicing function, Bella tracked payments and provided a discount for customers who used PayPal, which consequently led to higher sales.

2. TechTrends: Global Expansion via 2Checkout

TechTrends, a global electronics dropshipping store that is targeting customers, was facing the problem of fraud and chargebacks in high-risk countries. While they failed at it, they managed to make it by using 2Checkout and payment gateway.

Insights: To TechTrends, 2Checkout has been the ideal option, thanks to its global coverage and support for different currencies, which significantly simplify all the transactions in the world.

Challenges Faced: Combatting fraud and chargebacks were the primary obstacles, specifically in high-risk markets. However, the fraud protection features of 2Checkout helped to soften the risks involved.

Strategies Employed: TechTrends benefitted greatly from 2Checkout’s analytics as it could detect fraudulent transactions early on and thus developed more stringent verification measures. The other services they offer include safe payment options like 3D Secure, which help build customer trust.

3. Indian Apparel Co.: Indian Market’s Twin with Razorpay

Indian Apparel Company, a company that offers ethnic dresses for women in India, can credit RazorPay as their payment gateway for their success.

Insights: Through RazorPay, Indian Apparel Co. was able to serve the Indian market with the support of UPI and various wallets that cater to the different payment preferences in India.

Challenges Faced: While the Indian market is very dynamic and cash management is critical, we have been successful in dealing with these challenges. Despite that, RazorPay’s simplified interface and fast settlements contributed in a way that made the processes easier.

Strategies Employed: Indian Apparel Co. aimed to encourage the use of UPI by granting exclusive discounts to customers using this mode of payment and presented RazorPay’s secure payment features to build the confidence of customers who were skeptical about online transactions.


1. What is dropshipping, and how does it work?

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

2. Why is selecting the right payment gateway important for dropshipping businesses?

The payment gateway facilitates transactions between customers and sellers. Choosing the right one is crucial for ensuring seamless and secure payments, which can impact customer trust, conversion rates, and overall business success.

3. What factors should I consider when choosing a payment gateway for my dropshipping business?

Consider factors such as transaction fees, supported payment methods, security features, integration with e-commerce platforms, geographic coverage, customer support, and ease of use

4. What are some popular payment gateways used by dropshipping businesses?

Popular payment gateways include PayPal, Stripe, 2Checkout,, RazorPay, and others. The choice often depends on factors like geographic location, target market, and specific business needs.

5. How do payment gateways handle chargebacks in dropshipping transactions?

Payment gateways typically have procedures in place to handle chargebacks, which occur when a customer disputes a transaction. They may investigate the claim and provide evidence to support the seller’s case, helping to resolve disputes fairly.

6. Are there any additional fees associated with using payment gateways for dropshipping?

Yes, apart from transaction fees, some payment gateways may charge setup fees, monthly fees, chargeback fees, or currency conversion fees. It’s essential to review the fee structure carefully before selecting a payment gateway..

7. Can I use multiple payment gateways for my dropshipping business?

Yes, many e-commerce platforms support integration with multiple payment gateways. Using multiple gateways can offer flexibility to customers and mitigate risks associated with downtime or restrictions of a single gateway.

8. How can I ensure the security of payment transactions in my dropshipping store?

Implement security measures such as SSL encryption, PCI compliance, fraud detection tools, and secure checkout processes. Additionally, choose reputable payment gateways with robust security features.

9. Do I need a merchant account to use a payment gateway for dropshipping?

It depends on the payment gateway provider. Some gateways require merchants to have a merchant account, while others offer integrated solutions where no separate account is needed.

10. What support options are available if I encounter issues with my chosen payment gateway?

Most payment gateway providers offer customer support through various channels such as phone, email, live chat, and documentation resources. Ensure to review the support options and availability before selecting a payment gateway.

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