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

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 28 October 2026
Last modified: 28 October 2026
Fees checked on: 28 October 2026
Reading time: 16 min read

Short answer

On published fees for a USD 5,000 bank transfer, Payoneer leaves more rupees: about 1.00 to 4.00% in costs against 7.27 to 8.23%.⁴⁵¹²³ The better choice depends on how your client pays: PayPal is best for clients paying by card or PayPal balance, and Payoneer is best for marketplace payouts such as Amazon or Upwork.⁶⁷

Use case	Better option	Why
Bank transfer of USD 5,000	Payoneer	Estimated cost 1.00 to 4.00% against 7.27 to 8.23%.¹²³⁴⁵
Bank transfer of USD 2,000	Payoneer	Estimated cost 1.00 to 4.00% against 7.28 to 8.24%.¹²³⁴⁵
Client paying USD 2,000 by card or link	Payoneer	Estimated cost 1.99 to 4.96% against 7.28 to 8.24%.¹³⁴⁵
PayPal is best for	PayPal	Clients paying by card or PayPal balance.⁶
Payoneer is best for	Payoneer	Marketplace payouts such as Amazon or Upwork.⁷

Invoice amountCurrencyHow the client pays

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 route	Best for	Fee (+GST)	Markup	You receive	Cost
1	Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹942plus GST, rate not stated	0%	₹93,131 to ₹93,301	1.00 to 1.18%
2	RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)	Local transfers from the US, UK and eurozone	₹1,000plus GST, rate not stated	0%	₹93,063 to ₹93,243	1.06 to 1.25%
3	WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)	Local transfers with a published per-payment fee	₹1,435	0%	₹92,809	1.52%
4	SkydoPayment link (InstaLinks) paid by ACH debit	Local bank transfers from major markets	₹1,885plus GST, rate not stated	0%	₹92,019 to ₹92,358	2.00 to 2.36%
5	PayoneerThis pageLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹0no GST stated	1 to 4%	₹90,473 to ₹93,301	1.00 to 4.00%
6	PayPalThis pageInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)	Clients paying by card or PayPal balance	₹4,175no GST stated	3 to 4%	₹86,465 to ₹87,366	7.30 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 Payoneer compare at a glance?

PayPal and Payoneer 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.⁴²¹

	PayPal	Payoneer
Best for	Clients paying by card or PayPal balance⁶	Marketplace payouts such as Amazon or Upwork⁷
Fees	4.40% 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.⁴	Receiving account (local bank transfer): Payoneer's India multi-currency page says receiving USD is free for customers from India and other currencies are free; its India pricing page shows a standard 'fixed fee or 1%' for non-local currencies and says the fees applicable to you are shown in your account. From another Payoneer customer: free. Payment request: credit card 2.90% + $0.49, ACH bank debit (US only) 1%. Marketplace payouts: fees set by each marketplace. Intermediary banks may deduct fees on USD wires.²¹
FX markup	Base 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.⁴⁶	Not published as a separate rate. Withdrawing to an Indian bank account in INR from a balance in another currency costs 1% to 4% of the transaction amount; Payoneer says the exact fee depends on region and transaction volume and is shown in your account.
Settlement	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.⁸	Payoneer's pages differ: the India pricing page says within 48 hours of receipt; the multi-currency account page and the India onboarding guide say within 24 hours.¹²⁷
FIRA	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.⁵	Free 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.³⁹
Currencies	PayPal 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.¹⁰⁴	Local receiving account details in US dollar, British pound, euro, Australian dollar, Canadian dollar, Singapore dollar, Hong Kong dollar, UAE dirham, Chinese yuan and Japanese yen, per Payoneer's India multi-currency account page.²
KYC: who can sign up	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).⁶¹¹¹²	Individuals (freelancers) and businesses: at sign-up you say whether the account is for business or freelancing, and verify with a government ID such as Aadhaar or PAN and proof of an Indian bank account. Applicants must be over 18. Payoneer issues FIRAs in a company's name if the account is registered as a company. Detailed document lists by entity type are not published on the pages checked.¹³²³
RBI PA-CB status	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 2026.⁶¹⁴¹⁵	Payoneer lists 'Payoneer for India' as an Online Payment Gateway Service Provider (OPGSP) registered with the Reserve Bank of India (LO UIN No. MULO16008013). Payoneer India Private Limited received in-principle authorisation as a Payment Aggregator - Cross Border (PA-CB) on 22 January 2026; RBI lists it in Table E (applications under process, cannot operate) as of 16 October 2026 and states in-principle authorisation is not authorisation under Section 7 of the PSS Act. It does not appear in RBI's Certificates of Authorisation list dated 16 October 2026. Payoneer says INR payouts are processed by its partner AD banks over NEFT, RTGS and IMPS.¹⁶¹⁷¹⁸¹⁹³
Support	Not published as a list of channels for Indian users on the pages checked; PayPal India's help centre articles are the published support route.	India phone numbers +91 80712-79452 and +91 80044-04022, a contact form after sign-in, and the Payoneer Community.³
Limits	PayPal'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 $200.⁶¹²	Not published on the Payoneer India pages checked.
How clients pay	The 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.⁶⁴¹⁰	Local bank transfer to Payoneer receiving account details; USD SWIFT wire to a Payoneer SWIFT receiving account; payment request paid by credit card, ACH bank debit (US only), local bank transfer or direct bank payment (UK only); marketplace payouts (for example Amazon, eBay, Fiverr, Upwork); transfer from another Payoneer customer.⁷¹
Card payments	Buyers 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.⁶⁴	Yes, through a payment request: 2.90% + $0.49 for credit card payments (all currencies), per Payoneer's pricing page.¹⁷

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

The INR you receive with PayPal and Payoneer 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.

Platform	Best for	INR on USD 2,000	INR on USD 5,000	INR on USD 10,000	Cost on USD 5,000
PayoneerMost INRLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹1,80,947 to ₹1,86,601	₹4,52,367 to ₹4,66,503	₹9,04,734 to ₹9,33,007	1.00 to 4.00%
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 ₹8,73,908	7.27 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.⁶⁴

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 2026.⁶¹⁴¹⁵
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).⁶¹¹¹²
Best for: Clients paying by card or PayPal balance.⁶

What is Payoneer and who is it for?

Payoneer is a US-headquartered cross-border payments company whose account gives Indian freelancers and businesses receiving account details in several currencies, accepts marketplace payouts and client payment requests, and automatically withdraws received funds to an Indian bank account in rupees.²⁷

Regulated by: Payoneer lists 'Payoneer for India' as an Online Payment Gateway Service Provider (OPGSP) registered with the Reserve Bank of India (LO UIN No. MULO16008013). Payoneer India Private Limited received in-principle authorisation as a Payment Aggregator - Cross Border (PA-CB) on 22 January 2026; RBI lists it in Table E (applications under process, cannot operate) as of 16 October 2026 and states in-principle authorisation is not authorisation under Section 7 of the PSS Act. It does not appear in RBI's Certificates of Authorisation list dated 16 October 2026. Payoneer says INR payouts are processed by its partner AD banks over NEFT, RTGS and IMPS.¹⁶¹⁷¹⁸¹⁹³
Used by: Individuals (freelancers) and businesses: at sign-up you say whether the account is for business or freelancing, and verify with a government ID such as Aadhaar or PAN and proof of an Indian bank account. Applicants must be over 18. Payoneer issues FIRAs in a company's name if the account is registered as a company. Detailed document lists by entity type are not published on the pages checked.¹³²³
Best for: Marketplace payouts such as Amazon or Upwork.⁷

How do PayPal and Payoneer fees and FX markup compare?

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

What does PayPal charge?

Transaction type	Fee	FX markup	GST on fees	Best for
International commercial transaction received into a PayPal account (PayPal checkout or invoice)	4.4% + plus a fixed fee by currency⁴⁵	3 to 4%	Not stated	Clients paying through a payment link

What does Payoneer charge?

Transaction type	Fee	FX markup	GST on fees	Best for
Local bank transfer to Payoneer receiving account details	0%¹²³	1 to 4%	Not stated	Clients paying by local bank transfer
Payment request paid by credit card	2.9% + USD 0.49¹³	1 to 4%	Not stated	Clients paying by card
Payment request paid by ACH bank debit (US only)	1%¹³	1 to 4%	Not stated	Clients paying through a payment link
Payout from a marketplace or platform to Payoneer	Not published¹³	1 to 4%	Not stated	Marketplace payouts

How do PayPal and Payoneer compare on settlement speed?

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

Platform	Settlement time	Payout to India	Best for
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.⁸	PayPal 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).⁸⁴	Clients paying by card or PayPal balance⁶
Payoneer	Payoneer's pages differ: the India pricing page says within 48 hours of receipt; the multi-currency account page and the India onboarding guide say within 24 hours.¹²⁷	Automatic: payments received are withdrawn to the linked Indian bank account (or EEFC account, per the multi-currency page) without a manual request. Fee: 1% to 4% of the amount when converted to INR (see fxConversion).¹²⁷	Marketplace payouts such as Amazon or Upwork⁷

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

PayPal and Payoneer 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.³⁹

Platform	FIRA	RBI PA-CB status	Best for
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.⁵	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 2026.⁶¹⁴¹⁵	Clients paying by card or PayPal balance⁶
Payoneer	Free 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.³⁹	Payoneer lists 'Payoneer for India' as an Online Payment Gateway Service Provider (OPGSP) registered with the Reserve Bank of India (LO UIN No. MULO16008013). Payoneer India Private Limited received in-principle authorisation as a Payment Aggregator - Cross Border (PA-CB) on 22 January 2026; RBI lists it in Table E (applications under process, cannot operate) as of 16 October 2026 and states in-principle authorisation is not authorisation under Section 7 of the PSS Act. It does not appear in RBI's Certificates of Authorisation list dated 16 October 2026. Payoneer says INR payouts are processed by its partner AD banks over NEFT, RTGS and IMPS.¹⁶¹⁷¹⁸¹⁹³	Marketplace payouts such as Amazon or Upwork⁷

Which currencies, countries and payment methods do PayPal and Payoneer support?

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

Platform	Currencies	How clients pay	Card payments	Best for
PayPal	PayPal 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.¹⁰⁴	The 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.⁶⁴¹⁰	Buyers 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.⁶⁴	Clients paying by card or PayPal balance⁶
Payoneer	Local receiving account details in US dollar, British pound, euro, Australian dollar, Canadian dollar, Singapore dollar, Hong Kong dollar, UAE dirham, Chinese yuan and Japanese yen, per Payoneer's India multi-currency account page.²	Local bank transfer to Payoneer receiving account details; USD SWIFT wire to a Payoneer SWIFT receiving account; payment request paid by credit card, ACH bank debit (US only), local bank transfer or direct bank payment (UK only); marketplace payouts (for example Amazon, eBay, Fiverr, Upwork); transfer from another Payoneer customer.⁷¹	Yes, through a payment request: 2.90% + $0.49 for credit card payments (all currencies), per Payoneer's pricing page.¹⁷	Marketplace payouts such as Amazon or Upwork⁷

What are the strengths and limitations of PayPal and Payoneer?

PayPal and Payoneer 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.⁶
Individual invoices are at or below USD 10,000, the per-transaction ceiling in PayPal's India user agreement.⁶
You want an export document without a per-payment fee: PayPal provides a free weekly digital FIRA.⁵

Limitations:

The receiving fee is 4.40% plus a fixed fee per international commercial payment, before any currency conversion fee.⁴
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.⁴
Payments from Indian customers are not supported; only international payments can be received.¹⁰
Export Payment Services cannot be used for a product or service worth more than USD 10,000 per transaction.⁶
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.⁴
As of 16 October 2026 RBI lists PayPal Payments Private Limited with in-principle (not final) authorisation as a cross-border payment aggregator.¹⁴¹⁵

What are the strengths and limitations of Payoneer?

Strengths:

You are paid by marketplaces or platforms that pay out to Payoneer, such as Amazon, eBay, Fiverr or Upwork.⁷
Your clients want to pay by local bank transfer in USD, EUR, GBP or another supported currency using receiving account details.²
Some clients want to pay by credit card and you accept a 2.90% + $0.49 card fee on those payments.¹
You want a free FIRA for every transaction delivered to your account without a request.³

Limitations:

The INR conversion fee is published only as a 1% to 4% range; the exact rate is shown inside the account.¹
A 29.95 USD annual account fee applies if you receive less than 6,000 USD (or equivalent) in any 12 consecutive months.¹
Funds cannot be held in the Payoneer balance by Indian customers; payments are withdrawn to the Indian bank automatically.¹²
Payoneer India's PA-CB application had in-principle authorisation only as of 16 October 2026; RBI lists it as unable to operate as a PA-CB until authorised.¹⁸
The purpose code on processed payments and issued FIRAs cannot be changed through Payoneer.³
The FIRA from Payoneer is not an e-FIRA; for EDPMS reporting the exporter's own bank issues the IRM and e-FIRA.³

Should you choose PayPal or Payoneer?

Choose between PayPal and Payoneer 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.⁶
Individual invoices are at or below USD 10,000, the per-transaction ceiling in PayPal's India user agreement.⁶
You want an export document without a per-payment fee: PayPal provides a free weekly digital FIRA.⁵

Choose Payoneer if:

You are paid by marketplaces or platforms that pay out to Payoneer, such as Amazon, eBay, Fiverr or Upwork.⁷
Your clients want to pay by local bank transfer in USD, EUR, GBP or another supported currency using receiving account details.²
Some clients want to pay by credit card and you accept a 2.90% + $0.49 card fee on those payments.¹
You want a free FIRA for every transaction delivered to your account without a request.³

For example, say a designer invoices a US client USD 2,000 by bank transfer. On published fees, Payoneer costs about 1.00 to 4.00% and PayPal about 7.28 to 8.24%, a difference of about USD 105 on that invoice.¹²³⁴⁵

Which other platforms should you consider besides PayPal and Payoneer?

Other platforms to consider besides PayPal and Payoneer are the ones with the lowest estimated cost on a USD 5,000 receipt, listed in that order.²¹²²²³²⁴²⁵²⁶²⁸²⁹³¹³²³⁴³⁶³⁷³⁸

Platform	Best for	Estimated cost on USD 5,000	FIRA	Review
Skydo	Local bank transfers from major markets²⁰	0.68%²¹²²²³²⁴²⁵²⁶	Skydo says it issues a free FIRA on every payment received, and that its FIRA and FIRC are accepted for GST filing and by banks.²⁵²⁷	Skydo review
Karbon Business	US bank transfers and marketplace payouts²⁸	1.00 to 1.18%²⁸²⁹	Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.²⁸	Karbon Business review
Razorpay	Local transfers from the US, UK and eurozone³⁰	1.00 to 1.18%³¹³²	Razorpay 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.³⁰³³³²	Razorpay review
Winvesta	Local transfers with a published per-payment fee³⁴³⁵	1.24%³⁴³⁶³⁷³⁸	Free 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.³⁷³⁶	Winvesta 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.

Frequently asked questions

Which is cheaper for Indian exporters, PayPal or Payoneer?+

Payoneer is cheaper on published fees for a USD 5,000 bank transfer: estimated cost 1.00 to 4.00% against 7.27 to 8.23%.¹²³⁴⁵ 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 Payoneer 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.⁵ Payoneer: Free 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.³⁹

Can individual freelancers use PayPal and Payoneer?+

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).⁶¹¹¹² Payoneer: Individuals (freelancers) and businesses: at sign-up you say whether the account is for business or freelancing, and verify with a government ID such as Aadhaar or PAN and proof of an Indian bank account. Applicants must be over 18. Payoneer issues FIRAs in a company's name if the account is registered as a company. Detailed document lists by entity type are not published on the pages checked.¹³²³

Are PayPal and Payoneer 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 2026.⁶¹⁴¹⁵ Payoneer: Payoneer lists 'Payoneer for India' as an Online Payment Gateway Service Provider (OPGSP) registered with the Reserve Bank of India (LO UIN No. MULO16008013). Payoneer India Private Limited received in-principle authorisation as a Payment Aggregator - Cross Border (PA-CB) on 22 January 2026; RBI lists it in Table E (applications under process, cannot operate) as of 16 October 2026 and states in-principle authorisation is not authorisation under Section 7 of the PSS Act. It does not appear in RBI's Certificates of Authorisation list dated 16 October 2026. Payoneer says INR payouts are processed by its partner AD banks over NEFT, RTGS and IMPS.¹⁶¹⁷¹⁸¹⁹³

How fast do PayPal and Payoneer 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.⁸ Payoneer: Payoneer's pages differ: the India pricing page says within 48 hours of receipt; the multi-currency account page and the India onboarding guide say within 24 hours.¹²⁷

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

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, Payoneer or a bank wire.⁴⁰

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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