How do I set up local payment methods (Klarna, iDEAL, Sofort) in Shopify?

What Local Payment Methods Are and Why They Matter

Local payment methods allow your customers to pay using the most trusted options in their region such as Klarna, iDEAL, Sofort, Bancontact, UPI-style instant bank transfers, digital wallets, and pay-later services. These methods make checkout easier, improve trust, and significantly reduce abandoned carts by offering familiar payment choices instead of only card payments.

Before You Start: Check Availability

• Local payment methods like Klarna, iDEAL, and Sofort are available only when Shopify Payments is supported in your store location.
• If Shopify Payments is supported → follow the Shopify Payments steps below.
• If Shopify Payments is not supported → use the Third-Party Gateway method.

Method 1: Enable Local Payment Methods with Shopify Payments

Step 1: Activate Shopify Payments

1. Go to Settings > Payments in your Shopify admin.
2. Click Activate Shopify Payments or Complete account setup.
3. Enter business details, bank information, and upload required documents.
4. Complete verification and click Save.

Step 2: Enable Local Payment Methods

1. In Settings > Payments, click Manage under Shopify Payments.
2. In the Payment methods section, toggle on available options such as:
• Klarna – Pay later & installment payments
• iDEAL – Direct bank transfer
• Sofort – Online bank payments
• Bancontact, BLIK, Przelewy24 and others (based on customer location)
3. Click Save.

Note: For new Shopify Payments accounts, some local payment methods like Klarna, Shop Pay, Apple Pay, and Google Pay may already be enabled by default.

How It Works for Customers

Local payment methods automatically appear at checkout based on the customer’s location. Only payment options supported in that region will be shown, ensuring higher checkout success rates.

Payouts with Shopify Payments

• All local payment method transactions are included in your Shopify Payments payouts.
• Payout details appear in Finances > Payouts.
• Funds are deposited based on Shopify’s settlement schedule.

Method 2: Enable Local Payment Methods Using Third-Party Gateways

If Shopify Payments is not supported for your store, you can use third-party gateways to accept instant transfers, wallets, EMI, and pay-later options.

Step 1: Choose a Gateway

Select a trusted gateway that supports cards, instant bank transfers, wallets, EMI, and pay-later options.

Step 2: Create a Merchant Account

• Register on the gateway’s website.
• Complete business verification and connect your bank account.
• Locate your API credentials in the gateway dashboard under Settings / API Keys.

Step 3: Activate the Gateway in Shopify

1. Go to Settings > Payments.
2. Scroll to Third-party providers.
3. Click Choose a provider and select your gateway.
4. Enter your API credentials.
5. Click Activate.

Step 4: Enable Payment Options in the Gateway Dashboard

• Instant bank transfers
• Credit/Debit cards
• Digital wallets
• EMI options
• Pay-later services

Step 5: Test and Go Live

1. Enable Test Mode.
2. Place test orders.
3. Confirm payments appear correctly.
4. Switch to Live Mode and begin accepting payments.

How Payouts Work

• Payouts are managed inside your payment gateway dashboard.
• Funds are settled to your bank based on the gateway’s payout cycle.
• Gateway fees and Shopify third-party fees apply.

Supported Payment Capabilities

Troubleshooting Tips

• Payment not showing: Check gateway and Shopify settings.
• Payment failing: Verify API keys and live mode.
• Refund issues: Process refunds via gateway dashboard.
• Payout delays: Review settlement schedule.

Final Recommendation

Use Shopify Payments when available for unified payouts and easier management. If unavailable, connect a reliable third-party gateway to offer familiar regional payment methods and increase checkout success.