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PayPal vs Karbon Business (2026): Which Is Better for Receiving International Payments in India?

Author:
Editorial team, serviceexportguide.com
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Editorial team
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Short answer

On published fees for a USD 5,000 bank transfer, Karbon Business leaves more rupees: about 1.00 to 1.18% in costs against 7.27 to 8.23%.3412 The better choice depends on how your client pays: PayPal is best for clients paying by card or PayPal balance, and Karbon Business is best for uS bank transfers and marketplace payouts.51

Use caseBetter optionWhy
Bank transfer of USD 5,000Karbon BusinessEstimated cost 1.00 to 1.18% against 7.27 to 8.23%.1234
Bank transfer of USD 2,000Karbon BusinessEstimated cost 1.00 to 1.18% against 7.28 to 8.24%.1234
Client paying USD 2,000 by card or linkCannot comparePayPal costs about 7.28 to 8.24%; Karbon Business does not publish full pricing.34
PayPal is best forPayPalClients paying by card or PayPal balance.5
Karbon Business is best forKarbon BusinessUS bank transfers and marketplace payouts.1

1,000 USD = ₹94,243 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#Provider and routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costThis pageBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹942plus GST, rate not stated0%₹93,131 to ₹93,3011.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,063 to ₹93,2431.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,4350%₹92,8091.52%
4SkydoPayment link (InstaLinks) paid by ACH debitLocal bank transfers from major markets₹1,885plus GST, rate not stated0%₹92,019 to ₹92,3582.00 to 2.36%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,473 to ₹93,3011.00 to 4.00%
6PayPalThis pageInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,175no GST stated3 to 4%₹86,465 to ₹87,3667.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

How do PayPal and Karbon Business compare at a glance?

PayPal and Karbon Business compare on the twelve points below, using each provider's published information as checked on 28 October 2026. Where a provider does not publish something, the table says so.321

PayPalKarbon Business
Best forClients paying by card or PayPal balance5US bank transfers and marketplace payouts1
Fees4.40% plus a fixed fee per international commercial transaction. Fixed fee by currency received, for example 0.30 USD, 0.35 EUR, 0.20 GBP, 0.30 AUD, 0.30 CAD. Approved micropayment accounts pay 6.00% plus a micropayments fixed fee (for example 0.05 USD) instead.3Karbon's PayPal alternative page lists a 1% transaction fee in its feature list; its freelancer page gives no fee amount.21
FX markupBase exchange rate plus a fee. PayPal lists 3.0% above the base exchange rate for 'converting balance and payments received into another currency' and 4.00% for 'conversions in all other cases' (INR listed at 4.00%). The fee page does not say which of the two applies when the balance is converted to INR for transfer to an Indian bank.35Karbon's freelancer page says 0% markup on inward remittance; its PayPal comparison page gives a forex markup of 0.5% to 1.0%. The home page says displayed amounts are indicative and depend on the rate booking date.126
SettlementPayPal asks users to allow up to 5 business days for funds to show in the bank account, depending on the bank's clearing process.7Karbon says international payments reach India within 24 to 48 hours.1
FIRAFree weekly digital FIRA (Foreign Inward Remittance Advise) from February 2026, downloadable under Reports, then Tax, in a business account for the last 12 months; earlier transactions are covered by monthly FIRAs. Custom FIRA: 100 INR plus 18% GST per transaction for up to 20 transactions, or 2,000 INR plus 18% GST for a bulk request above 20 transactions; PayPal says custom FIRAs are issued by Citibank.4Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.1
CurrenciesPayPal says Indian users can receive payments from international customers in more than 25 currencies. The list below is the currencies other than INR that appear in the fixed-fee table on PayPal's India fee page.83Karbon names USD, EUR and GBP; the virtual account it describes is in USD.1
KYC: who can sign upIndian residents with a personal or business account; PayPal's KYC page covers individual business accounts, sole proprietors, partnership firms (including LLPs) and private limited companies. Receiving international payments needs a verified PAN, a linked Indian bank account, a purpose code, a description of the business and full KYC (Lite KYC allows one payment under $200).5910Karbon markets the service to freelancers, exporters and small businesses. Its forex terms require the user to be duly incorporated under the laws of India. Karbon does not publish whether an unregistered individual can sign up.111
RBI PA-CB statusPayPal's India user agreement says it provides export payment services as an online payment gateway service provider under RBI A.P. (DIR Series) Circular No. 16 (RBI/2015-16/185) and that PayPal is not a bank in India. RBI's status list as on 16 October 2026 shows PayPal Payments Private Limited under 'Existing PAs-CB which can operate as Payment Aggregator- Cross Border' with 'In-Principle Authorisation Granted'. PayPal is not on RBI's list of Certificates of Authorisation dated 16 October 2026.51213Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.11146
SupportNot published as a list of channels for Indian users on the pages checked; PayPal India's help centre articles are the published support route.WhatsApp +91 74117 02726, sales@karboncard.com, support@karboncard.com and 1-800-309-8470.1
LimitsPayPal's India user agreement lists using Export Payment Services for a product or service worth more than USD 10,000 per transaction as a restricted activity. Lite KYC allows receiving one payment under $200.510Not published by Karbon. RBI rules set a limit of ₹25 lakh per export transaction for PA-CBs.
How clients payThe buyer pays through PayPal from a PayPal balance, card, bank account or other payment method; alternative payment methods listed in PayPal's APM agreement can be enabled and are charged at commercial transaction rates. Payments from Indian customers are not supported.538Bank transfer to a virtual USD account (US account details in the user's name), payment requests or invoices sent by email or WhatsApp, and as a payout method on Upwork, Fiverr and Toptal.1
Card paymentsBuyers can pay by credit or debit card through PayPal. The India fee page publishes one rate for receiving international commercial transactions (4.40% plus fixed fee) and does not list a separate card rate.53Not published.

How much INR do you receive on $2,000, $5,000 and $10,000 with PayPal vs Karbon Business?

The INR you receive with PayPal and Karbon Business is the invoice at the reference rate, less each provider's fee, conversion markup, GST on fees and FIRA charge. The table works this out from published pricing at today's rate.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
Karbon BusinessMost INRBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹1,72,958 to ₹1,74,760₹4,32,436 to ₹4,36,940₹8,64,899 to ₹8,73,9087.27 to 8.23%

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

What is PayPal and who is it for?

PayPal is a payment services company whose India entity, PayPal Payments Private Limited, lets Indian residents receive payments from buyers outside India and transfers the balance to a linked Indian bank account.53

  • Regulated by: PayPal's India user agreement says it provides export payment services as an online payment gateway service provider under RBI A.P. (DIR Series) Circular No. 16 (RBI/2015-16/185) and that PayPal is not a bank in India. RBI's status list as on 16 October 2026 shows PayPal Payments Private Limited under 'Existing PAs-CB which can operate as Payment Aggregator- Cross Border' with 'In-Principle Authorisation Granted'. PayPal is not on RBI's list of Certificates of Authorisation dated 16 October 2026.51213
  • Used by: Indian residents with a personal or business account; PayPal's KYC page covers individual business accounts, sole proprietors, partnership firms (including LLPs) and private limited companies. Receiving international payments needs a verified PAN, a linked Indian bank account, a purpose code, a description of the business and full KYC (Lite KYC allows one payment under $200).5910
  • Best for: Clients paying by card or PayPal balance.5

What is Karbon Business and who is it for?

Karbon Business is a Bengaluru fintech that markets a virtual USD account, payment requests and inward remittances in INR to Indian freelancers and exporters; its forex terms say export receipts are processed under a payment partner's connected user terms.111

  • Regulated by: Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.11146
  • Used by: Karbon markets the service to freelancers, exporters and small businesses. Its forex terms require the user to be duly incorporated under the laws of India. Karbon does not publish whether an unregistered individual can sign up.111
  • Best for: US bank transfers and marketplace payouts.1

How do PayPal and Karbon Business fees and FX markup compare?

PayPal and Karbon Business charge in different ways, so compare the fee and the conversion markup together, not the headline fee alone.

What does PayPal charge?

Transaction typeFeeFX markupGST on feesBest for
International commercial transaction received into a PayPal account (PayPal checkout or invoice)4.4% + plus a fixed fee by currency343 to 4%Not statedClients paying through a payment link

What does Karbon Business charge?

Transaction typeFeeFX markupGST on feesBest for
Bank transfer to a Karbon virtual USD account1%120%Not statedClients paying by local bank transfer

How do PayPal and Karbon Business compare on settlement speed?

PayPal and Karbon Business publish these settlement times for money reaching an Indian bank account.

PlatformSettlement timePayout to IndiaBest for
PayPalPayPal asks users to allow up to 5 business days for funds to show in the bank account, depending on the bank's clearing process.7PayPal transfers the balance automatically every day to the linked Indian bank account. Standard withdrawal to a bank account: no fee when no currency conversion is involved. A failed withdrawal because of incorrect bank details carries a bank return fee of 250.00 (currency not stated on the page).73Clients paying by card or PayPal balance5
Karbon BusinessKarbon says international payments reach India within 24 to 48 hours.1Paid in INR to the user's Indian bank account. Payout fee not published.12US bank transfers and marketplace payouts1

Do PayPal and Karbon Business provide FIRA and e-BRC, and are they RBI PA-CB authorised?

PayPal and Karbon Business publish the FIRA position and RBI status below, checked on 28 October 2026. An e-BRC is generated by the exporter on the DGFT portal from bank remittance data, so it does not depend on the provider issuing one.37

PlatformFIRARBI PA-CB statusBest for
PayPalFree weekly digital FIRA (Foreign Inward Remittance Advise) from February 2026, downloadable under Reports, then Tax, in a business account for the last 12 months; earlier transactions are covered by monthly FIRAs. Custom FIRA: 100 INR plus 18% GST per transaction for up to 20 transactions, or 2,000 INR plus 18% GST for a bulk request above 20 transactions; PayPal says custom FIRAs are issued by Citibank.4PayPal's India user agreement says it provides export payment services as an online payment gateway service provider under RBI A.P. (DIR Series) Circular No. 16 (RBI/2015-16/185) and that PayPal is not a bank in India. RBI's status list as on 16 October 2026 shows PayPal Payments Private Limited under 'Existing PAs-CB which can operate as Payment Aggregator- Cross Border' with 'In-Principle Authorisation Granted'. PayPal is not on RBI's list of Certificates of Authorisation dated 16 October 2026.51213Clients paying by card or PayPal balance5
Karbon BusinessKarbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.1Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.11146US bank transfers and marketplace payouts1

Which currencies, countries and payment methods do PayPal and Karbon Business support?

PayPal and Karbon Business accept the currencies and payment methods below, as each publishes them.

PlatformCurrenciesHow clients payCard paymentsBest for
PayPalPayPal says Indian users can receive payments from international customers in more than 25 currencies. The list below is the currencies other than INR that appear in the fixed-fee table on PayPal's India fee page.83The buyer pays through PayPal from a PayPal balance, card, bank account or other payment method; alternative payment methods listed in PayPal's APM agreement can be enabled and are charged at commercial transaction rates. Payments from Indian customers are not supported.538Buyers can pay by credit or debit card through PayPal. The India fee page publishes one rate for receiving international commercial transactions (4.40% plus fixed fee) and does not list a separate card rate.53Clients paying by card or PayPal balance5
Karbon BusinessKarbon names USD, EUR and GBP; the virtual account it describes is in USD.1Bank transfer to a virtual USD account (US account details in the user's name), payment requests or invoices sent by email or WhatsApp, and as a payout method on Upwork, Fiverr and Toptal.1Not published.US bank transfers and marketplace payouts1

What are the strengths and limitations of PayPal and Karbon Business?

PayPal and Karbon Business each suit some exporters better than others. These points come from each provider's own pages.

What are the strengths and limitations of PayPal?

Strengths:

  • Your foreign client wants to pay by card or from a PayPal balance rather than by bank transfer.5
  • Individual invoices are at or below USD 10,000, the per-transaction ceiling in PayPal's India user agreement.5
  • You want an export document without a per-payment fee: PayPal provides a free weekly digital FIRA.4

Limitations:

  • The receiving fee is 4.40% plus a fixed fee per international commercial payment, before any currency conversion fee.3
  • The fee page lists both 3.0% and 4.00% conversion fees and does not state which one applies to conversion to INR on withdrawal.3
  • Payments from Indian customers are not supported; only international payments can be received.8
  • Export Payment Services cannot be used for a product or service worth more than USD 10,000 per transaction.5
  • Dispute and chargeback fees apply, for example 8.00 USD at the standard rate and 16.00 USD at the high-volume rate, and receiving fees are not returned on refunds.3
  • As of 16 October 2026 RBI lists PayPal Payments Private Limited with in-principle (not final) authorisation as a cross-border payment aggregator.1213

What are the strengths and limitations of Karbon Business?

Strengths:

  • Your clients can pay by US bank transfer to a USD account, or you are paid out by Upwork, Fiverr or Toptal.1
  • You want INR in your Indian bank and a FIRA for each receipt.1

Limitations:

  • No receiving fee, payout fee or FIRA cost is published.16
  • Karbon itself is not an RBI-authorised payment aggregator; export receipts run through a third party under separate terms.1411
  • The forex terms address incorporated users, while marketing pages address freelancers; eligibility for unregistered individuals is not published.111
  • Purpose code handling and card payment options are not published.1

Should you choose PayPal or Karbon Business?

Choose between PayPal and Karbon Business by how your clients pay and your usual invoice size.

Choose PayPal if:

  • Your foreign client wants to pay by card or from a PayPal balance rather than by bank transfer.5
  • Individual invoices are at or below USD 10,000, the per-transaction ceiling in PayPal's India user agreement.5
  • You want an export document without a per-payment fee: PayPal provides a free weekly digital FIRA.4

Choose Karbon Business if:

  • Your clients can pay by US bank transfer to a USD account, or you are paid out by Upwork, Fiverr or Toptal.1
  • You want INR in your Indian bank and a FIRA for each receipt.1

For example, say a designer invoices a US client USD 2,000 by bank transfer. On published fees, Karbon Business costs about 1.00 to 1.18% and PayPal about 7.28 to 8.24%, a difference of about USD 133 on that invoice.1234

Which other platforms should you consider besides PayPal and Karbon Business?

Other platforms to consider besides PayPal and Karbon Business are the ones with the lowest estimated cost on a USD 5,000 receipt, listed in that order.161718192021242527293031333435

PlatformBest forEstimated cost on USD 5,000FIRAReview
SkydoLocal bank transfers from major markets150.68%161718192021Skydo says it issues a free FIRA on every payment received, and that its FIRA and FIRC are accepted for GST filing and by banks.2022Skydo review
RazorpayLocal transfers from the US, UK and eurozone231.00 to 1.18%2425Razorpay provides a Foreign Inward Remittance Statement (FIRS), sent to the contact email within 24 hours after settlement for bank transfers, and downloadable from the dashboard, which shows bank-provided certificates and Razorpay-generated statements. The pricing page lists FIRC or eFIRC as included and auto-generated for international cards. No separate charge is published.232625Razorpay review
WinvestaLocal transfers with a published per-payment fee27281.24%27293031Free e-FIRA, emailed within 24 hours of funds reaching the Indian bank account and downloadable from the dashboard; it shows the purpose code and exchange rate.3029Winvesta review
PayoneerMarketplace payouts such as Amazon or Upwork321.00 to 4.00%333435Free digital FIRA PDF for each transaction, issued by Payoneer's partner AD bank and available in the account under Manage, Reports and statements, within 24 to 72 hours (the same help article also says 1 to 3 business days). The e-FIRA/IRM in EDPMS is issued by the exporter's own bank, which may need the FIRA plus export documents.3536Payoneer review

Compare every provider on your own invoice in the platform cost comparison.

How did we verify this?

We checked this page against the sources below on 28 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]Karbon, Karbon for freelancers (checked 2026-10-28)
  2. [2]Karbon, PayPal alternative (checked 2026-10-28)
  3. [3]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  4. [4]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  5. [5]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  6. [6]Karbon, Karbon FX Remittances, home page (checked 2026-10-28)
  7. [7]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  8. [8]PayPal India Help, Can I use PayPal to receive payments from Indian customers? (checked 2026-10-28)
  9. [9]PayPal India, Four steps to complete your KYC (checked 2026-10-28)
  10. [10]PayPal India Help, How do I receive payments through PayPal? (checked 2026-10-28)
  11. [11]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  12. [12]RBI, Status of Applications received under Payment and Settlement Systems Act, 2007, as on 16.10.2026, Table D (checked 2026-10-28)
  13. [13]RBI, Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, 16 October 2026 (checked 2026-10-28)
  14. [14]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators (PA-O, PA-P and PA-CB), list dated 16 October 2026 (checked 2026-10-28)
  15. [15]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  16. [16]Skydo FAQ, How much does Skydo charge? (checked 2026-10-28)
  17. [17]Skydo, Home page (checked 2026-10-28)
  18. [18]Skydo FAQ, Who will bear the SWIFT charges? (checked 2026-10-28)
  19. [19]Skydo FAQ, Limitations and restrictions on receiving your foreign remittance via Skydo (checked 2026-10-28)
  20. [20]Skydo, Receive international payments in India as a freelancer (checked 2026-10-28)
  21. [21]Skydo, Terms of use (checked 2026-10-28)
  22. [22]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  23. [23]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  24. [24]Razorpay, MoneySaver Export Account (international bank transfers) (checked 2026-10-28)
  25. [25]Razorpay, Pricing (checked 2026-10-28)
  26. [26]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  27. [27]Winvesta FAQs, What are the charges for the global collections account? (checked 2026-10-28)
  28. [28]Winvesta FAQs, What currencies are available with local accounts? (checked 2026-10-28)
  29. [29]Winvesta, Multi-currency account (checked 2026-10-28)
  30. [30]Winvesta FAQ, When will I receive my e-FIRA certificate? (checked 2026-10-28)
  31. [31]Winvesta FAQ, Can I get priority processing for my withdrawal? (checked 2026-10-28)
  32. [32]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  33. [33]Payoneer India, Payoneer Fees (checked 2026-10-28)
  34. [34]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  35. [35]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  36. [36]Payoneer India, Digital FIRC page (checked 2026-10-28)
  37. [37]DGFT: eBRC services (self-generation of e-BRC from bank inward remittance data)
  38. [38]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)

Frequently asked questions

Which is cheaper for Indian exporters, PayPal or Karbon Business?+

Karbon Business is cheaper on published fees for a USD 5,000 bank transfer: estimated cost 1.00 to 1.18% against 7.27 to 8.23%.1234 The answer can change with the currency, payment method and invoice size, so check your own numbers in the platform cost comparison.

Do PayPal and Karbon Business give a FIRA to Indian exporters?+

PayPal: Free weekly digital FIRA (Foreign Inward Remittance Advise) from February 2026, downloadable under Reports, then Tax, in a business account for the last 12 months; earlier transactions are covered by monthly FIRAs. Custom FIRA: 100 INR plus 18% GST per transaction for up to 20 transactions, or 2,000 INR plus 18% GST for a bulk request above 20 transactions; PayPal says custom FIRAs are issued by Citibank.4 Karbon Business: Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.1

Can individual freelancers use PayPal and Karbon Business?+

PayPal: Indian residents with a personal or business account; PayPal's KYC page covers individual business accounts, sole proprietors, partnership firms (including LLPs) and private limited companies. Receiving international payments needs a verified PAN, a linked Indian bank account, a purpose code, a description of the business and full KYC (Lite KYC allows one payment under $200).5910 Karbon Business: Karbon markets the service to freelancers, exporters and small businesses. Its forex terms require the user to be duly incorporated under the laws of India. Karbon does not publish whether an unregistered individual can sign up.111

Are PayPal and Karbon Business authorised by the RBI?+

PayPal: PayPal's India user agreement says it provides export payment services as an online payment gateway service provider under RBI A.P. (DIR Series) Circular No. 16 (RBI/2015-16/185) and that PayPal is not a bank in India. RBI's status list as on 16 October 2026 shows PayPal Payments Private Limited under 'Existing PAs-CB which can operate as Payment Aggregator- Cross Border' with 'In-Principle Authorisation Granted'. PayPal is not on RBI's list of Certificates of Authorisation dated 16 October 2026.51213 Karbon Business: Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.11146

How fast do PayPal and Karbon Business pay out to an Indian bank?+

PayPal: PayPal asks users to allow up to 5 business days for funds to show in the bank account, depending on the bank's clearing process.7 Karbon Business: Karbon says international payments reach India within 24 to 48 hours.1

Do I still need an LUT if I am paid through PayPal or Karbon Business?+

Yes, if you are registered under GST and want to invoice the export without IGST. The Letter of Undertaking is a GST filing for the financial year, and it does not depend on how the money reaches you, whether through PayPal, Karbon Business or a bank wire.38

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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