Shopify Payment Options for Pakistani Stores: Local Gateways, Stripe and Foreign Companies
By Shaheer Khan, founder of Markify Ecommerce
One of the first questions Pakistani store owners ask us is: "Why can't I turn on Shopify Payments?" The answer is that Shopify Payments, Shopify's own card processor, is only offered to businesses based in a list of supported countries, and Pakistan is not on it. PayPal also does not accept Pakistani businesses as merchants.
That does not mean you cannot take payments. It means you choose a route based on who your customers are: shoppers in Pakistan or shoppers abroad.
Do not try to get around these rules with a foreign address you do not own, someone else's identity or a VPN. Payment providers verify identity and business documents, and accounts opened this way are regularly closed with funds held for months.
Route 1: Selling to customers in Pakistan
For a store selling inside Pakistan, the payment mix usually looks like this:
Cash on delivery (COD)
COD is still how most Pakistani online shoppers prefer to pay. Shopify supports it as a manual payment method, and most courier companies (Leopards, TCS, PostEx, Trax, M&P and others) collect the cash and pay you after deducting their charges. The downside is refused parcels. Our guide on reducing COD refusals covers confirmation calls, WhatsApp verification and prepaid incentives.
Local payment gateways
Several Pakistani payment companies offer Shopify integrations that accept local debit and credit cards, bank transfers and mobile wallets such as JazzCash and Easypaisa. Names Pakistani merchants commonly use include Safepay, XPay and Paymob, and banks run their own merchant gateways. Integrations and features change, so before you sign:
- confirm the gateway currently works with Shopify checkout (as an app or a redirect)
- ask for the full fee schedule: setup, per-transaction percentage, wallet fees and payout fees
- ask how long settlement to your bank takes
- check what documents they need (usually CNIC, NTN, bank account in the business name and, for companies, SECP documents)
Shopify charges an extra transaction fee when you use a third-party gateway instead of Shopify Payments. On current plans it is 2% on Basic, 1% on Grow and 0.6% on Advanced. Include it in your margin calculations.
Bank transfer
You can add "bank transfer" or "Raast" as a manual payment method with your account details. It suits higher-value orders, but someone has to check every payment manually before shipping.
Route 2: Selling to customers abroad
If your Shopify store sells to buyers in the US, UK or Europe, they expect to pay by card, Apple Pay, Google Pay or Shop Pay. A COD or local-wallet setup will not work for them.
The usual legitimate route is to sell through a company registered in a country where Shopify Payments or Stripe is available:
- Form a company: a US LLC (often Wyoming or Delaware) or a UK Ltd. See US LLC vs UK Ltd for Pakistani sellers.
- Get a tax ID: an EIN for a US LLC (how to get an EIN from Pakistan) or the company number and UTR for a UK Ltd.
- Open a business bank account in the company's name: opening a US business bank account from Pakistan.
- Apply for the payment processor with the company's real details. Stripe is the most common choice for non-resident-owned US LLCs. Shopify Payments availability depends on the store's business country and on verifying the owners, so check Shopify's current requirements for your structure.
- Keep it clean: use the company's real address, your real identity as the owner, and a website with clear contact details, refund policy and terms. Most verification problems come from mismatched details. Our Stripe verification guide covers the common issues.
A foreign company brings tax and filing duties in that country and in Pakistan. Read our plain-English tax overview for US LLC owners and speak to an accountant before you start.
Getting the money home
Payouts land in the company's foreign bank account. From there, transfer to your Pakistani bank account through normal banking channels and keep records, so your income is documented for your bank and for tax. See how Pakistani sellers receive marketplace payouts.
Which route is right for you?
| Your situation | Sensible setup |
|---|---|
| Selling only in Pakistan | COD + a local gateway for cards and wallets + bank transfer |
| Testing international sales on a small scale | Start with marketplaces (Amazon, Etsy, eBay) that pay out to supported accounts, before forming a company |
| Serious international Shopify brand | US LLC or UK Ltd with Stripe or Shopify Payments |
| Both local and international | Two stores (or markets) with separate payment setups |
Frequently asked questions
Can I use Shopify Payments with a Pakistani business?
No. Shopify Payments is not offered to businesses based in Pakistan. Use local gateways for Pakistani customers, or a company in a supported country for international customers.
Is it legal to use a US LLC to accept payments?
Yes, when the company is genuinely yours, registered correctly, and you meet its tax and reporting duties in the US and Pakistan.
Can Markify set this up?
Yes. Our US company formation service covers the LLC, EIN, bank and Stripe setup, and our Shopify agency team connects the payment options to your store.
Work with Markify Ecommerce
Markify Ecommerce (listed on Google Maps as Markify Ecommerce - Unicored Technologies) is an ecommerce marketplace management agency in Bahria Orchard, Lahore. We manage Amazon, eBay, Walmart, Shopify, Etsy and TikTok Shop accounts, and we set up US LLCs and UK Ltd companies for Pakistani sellers.
- Office: Central Block, Bahria Orchard, Raiwind Road, Lahore 55150, Punjab, Pakistan
- Phone & WhatsApp: +92 321 3131641
- Free account audit: Send us your store or account details and we will reply with the first fixes we would make.