If you run an online store in Australia, offering the right payment options can make a huge difference to your sales. Customers want to pay using methods they trust. If they cannot see their preferred payment option at checkout, they may leave without completing their purchase.

In this guide, you will learn how to integrate local payment gateways with your Shopify store, why it matters, and which options work best for Australian businesses.

Why Local Payment Gateways Matter for Your Shopify Store

When customers shop online, they want convenience and security. Local payment gateways help build trust because they are familiar with the brand and process.

Here are some key benefits:

  • Higher checkout conversion rates
  • Improved customer trust
  • Faster payment processing
  • Support for local currencies
  • Compliance with Australian regulations

For Australian Shopify stores, offering options beyond just credit cards can increase completed sales and reduce cart abandonment.

What Is a Payment Gateway?

A payment gateway is a service that securely processes credit card and other online payments. It connects your Shopify store to banks and financial institutions to approve or decline transactions.

Shopify has its own built in system called Shopify Payments, but you can also connect third party local gateways depending on your business needs.

Check If Shopify Payments Is Available in Australia

Before looking at third party providers, check if Shopify Payments suits your store.

Shopify Payments in Australia supports:

  • Visa and Mastercard
  • American Express
  • Apple Pay
  • Google Pay
  • Shop Pay

It is easy to set up and usually has competitive fees. However, some businesses prefer local gateways for better rates, settlement speed, or specific features.

Pick the Right Local Payment Gateway for Your Shopify Store in Australia

Not all payment gateways are created equal, and the one you choose can make a big difference to your sales. In Australia, there are plenty of local options that customers know and trust. Using a familiar gateway can make people feel more confident at checkout, which means fewer abandoned carts.

Here are some of the popular local choices worth considering:

1. eWAY – The Aussie Classic

eWAY has been around for years and is a favourite for Aussie online stores. It handles all the major credit cards and comes with solid fraud protection tools. If you want a reliable option that gives your customers confidence, eWAY is a smart pick.

Best for: Small to medium businesses that want local support and smooth integration.

2. Afterpay – Let Customers Pay Later

Afterpay is huge in Australia, especially with younger shoppers. It lets your customers split their purchase into interest-free payments. This can boost your sales, especially for fashion, lifestyle, and higher-priced products.

Best for: Stores selling clothing, accessories, or anything people might want to pay off over time.

3. Zip – Flexible Buy Now, Pay Later

Zip is another buy now, pay later option. It’s perfect if you sell electronics, homewares, or mid-to-high-ticket items. Many customers love the flexibility Zip offers, and it can help increase your average order value.

Best for: Tech, home goods, and higher-priced products.

4. PayPal – Trusted Worldwide

PayPal might not be strictly local, but Aussies know it well. Many shoppers feel safer using PayPal because of buyer protection, and it’s super easy to set up. Plus, if you sell internationally, it’s a must-have.

Best for: New stores building trust, stores selling internationally, or anyone wanting quick setup.

How to Add a Payment Gateway to Your Shopify Store

Adding a payment gateway to your Shopify store isn’t as scary as it sounds. Once you know the steps, it’s pretty straightforward. Here’s a simple, step-by-step guide.

Step 1: Log in to Shopify

First things first, log in to your Shopify dashboard. You’ll need admin access to make any changes.

Step 2: Head to Payments in Settings

In the bottom left corner of your dashboard, click Settings, then choose Payments. This is where all the magic happens. Here, you’ll see:

  • Shopify Payments (if it’s available to you)
  • Third-party payment providers
  • Manual payment methods

Step 3: Pick Your Third-Party Gateway

Scroll down to the Third-party payment providers section. Click Choose third-party provider and search for the gateway you want, like eWAY, Afterpay, or Zip.

Click Activate once you find it.

Step 4: Pop in Your Account Details

Your gateway will give you a few things to enter:

  • Merchant ID
  • API key
  • Secret key

These might sound complicated, but your payment provider will have clear instructions. Just copy and paste them, then hit Save.

Step 5: Test It Before Going Live

Never skip this step. Make a small test purchase to make sure everything works smoothly. Check that:

  • Payments go through
  • Your store receives confirmation
  • Funds appear in your account

Testing first will save you from any nasty surprises when real customers start buying.

Optimise Your Checkout for Higher Conversions

Adding local payment gateways is only part of the process. You should also optimise your checkout experience.

Here are some tips:

  • Display payment logos clearly
  • Offer buy now pay later options prominently
  • Keep checkout steps minimal
  • Ensure mobile optimisation
  • Use clear shipping and refund policies

Australian customers often shop on mobile devices, so make sure the payment process is smooth on smartphones.

Understand Fees and Settlement Times

Each payment gateway has:

  • Transaction fees
  • Monthly fees
  • Chargeback fees
  • Settlement timeframes

For example:

  • Shopify Payments typically settles within a few business days
  • eWAY may vary depending on your bank
  • Afterpay and Zip have different merchant fee structures

Compare total costs before choosing a provider. The cheapest option is not always the best if it affects customer trust or approval rates.

Security and Compliance in Australia

When integrating payment gateways, security is critical.

Look for providers that offer:

  • PCI DSS compliance
  • Fraud detection tools
  • Two factor authentication
  • Encrypted transactions

Australian businesses must comply with local consumer laws and privacy regulations, so choose reputable gateways with strong compliance standards.

Common Mistakes to Avoid

Here are common mistakes when integrating local payment gateways with Shopify:

  1. Not checking compatibility with your Shopify plan
  2. Forgetting to test transactions
  3. Ignoring transaction fees
  4. Not displaying payment options clearly
  5. Offering too many confusing choices

Keep it simple and aligned with your target audience.

Should You Offer Multiple Payment Gateways?

In most cases, yes.

Offering:

  • Credit cards
  • PayPal
  • Buy now pay later

can significantly improve conversions.

However, too many similar options can overwhelm customers. Choose payment methods that match your customer demographics and product pricing.

Final Thoughts

Integrating local payment gateways with your Shopify store is not complicated, but it does require careful planning.

By choosing trusted Australian providers like eWAY, Afterpay, and Zip, and setting them up correctly inside Shopify, you can improve customer trust, increase conversions, and grow your online store.

The key is to:

  • Understand your customers
  • Compare fees
  • Test thoroughly
  • Optimise your checkout

When done right, the right payment setup can turn more visitors into paying customers and help your Shopify business thrive in the competitive Australian ecommerce market.