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

Author:
Editorial team, serviceexportguide.com
Verified by:
Editorial team
Published
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Fees checked on
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16 min read

Short answer

On published fees for a USD 5,000 bank transfer, Razorpay 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 Razorpay is best for local transfers from the US, UK and eurozone.56

Use caseBetter optionWhy
Bank transfer of USD 5,000RazorpayEstimated cost 1.00 to 1.18% against 7.27 to 8.23%.1234
Bank transfer of USD 2,000RazorpayEstimated cost 1.00 to 1.18% against 7.28 to 8.24%.1234
Client paying USD 2,000 by card or linkRazorpayEstimated cost 2.00 to 2.36% against 7.28 to 8.24%.134
PayPal is best forPayPalClients paying by card or PayPal balance.5
Razorpay is best forRazorpayLocal transfers from the US, UK and eurozone.6

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 costBank 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%
2RazorpayThis pageMoneySaver 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 Razorpay compare at a glance?

PayPal and Razorpay 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.3127

PayPalRazorpay
Best forClients paying by card or PayPal balance5Local transfers from the US, UK and eurozone6
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.3MoneySaver bank transfers: 1% per transaction, GST applicable, with a flat fee of ₹1,000 on transactions below ₹1,00,000. Flash Links (US ACH debit): 2%. International cards: up to 3% per successful transaction plus 18% GST on the pricing page (the international payments page says 3% plus taxes). Enterprise pricing is custom.127
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.35MoneySaver bank transfers: Razorpay says 0% FX markup, converting at the live exchange rate. Card payments: converted at the rate on the date of payment (the processing bank's rate, per Razorpay's docs); any markup on card conversions is not published.128
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.9Push bank transfers (ACH, FPS, SEPA, SWIFT): T+1 from capture or from when invoice details are shared, whichever is later. Flash Links (ACH debit): around T+5 business days. International cards: Razorpay's FAQ refers to a T+7 working day settlement period, with early settlement at an additional, unpublished charge.610111
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.4Razorpay 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.6122
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.133Virtual local accounts in USD, GBP and EUR plus a SWIFT account; Razorpay's docs list other currencies (such as SGD, AED, AUD, CHF, DKK, SEK and CAD accounts) as coming soon on the dashboard. Card payments are accepted in around 135 currencies, according to Razorpay.67
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).51415Indian businesses with a completed Razorpay KYC. The MoneySaver onboarding form lists Individual, Sole Proprietorship, Partnership, Private Limited, Public Limited and LLP as business types, and the business must fall under one of the export purpose codes Razorpay lists. International card payments need a website with terms, privacy, refund and shipping policy pages. Razorpay says it cannot offer international payments to NGOs.61611
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 2026.51718Razorpay Payments Private Limited (formerly Razorpay Software Private Limited) appears on the RBI list of authorised payment system operators as a Payment Aggregator: Online, Physical, and Cross Border facilitating Inward and Outward transactions (PA-CB I and O).18
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.Support tickets raised from Razorpay's support page, per product.19
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 $200.515Razorpay does not publish a per-transaction limit for international receipts. RBI's Payment Aggregator directions cap PA-CB export transactions at ₹25 lakh per transaction.20
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.5313Bank transfer to virtual account details (ACH in USD, FPS in GBP, SEPA in EUR, and SWIFT), ACH debit through Flash Links for US payers, or international card and wallet payments through Razorpay checkout or payment links.6107
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.53Yes, international cards (Visa, Mastercard, Amex, Diners, Discover, JCB, UnionPay listed on the pricing page) and wallets such as Apple Pay and Google Pay, at up to 3% per successful transaction plus 18% GST.27

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

The INR you receive with PayPal and Razorpay 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
RazorpayMost INRMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹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 2026.51718
  • 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).51415
  • Best for: Clients paying by card or PayPal balance.5

What is Razorpay and who is it for?

Razorpay is a Bengaluru-based payment company whose international products let Indian businesses accept foreign card payments and receive bank transfers into virtual USD, GBP, EUR and SWIFT account details (the MoneySaver Export Account), with settlement in INR to an Indian bank account.7618

  • Regulated by: Razorpay Payments Private Limited (formerly Razorpay Software Private Limited) appears on the RBI list of authorised payment system operators as a Payment Aggregator: Online, Physical, and Cross Border facilitating Inward and Outward transactions (PA-CB I and O).18
  • Used by: Indian businesses with a completed Razorpay KYC. The MoneySaver onboarding form lists Individual, Sole Proprietorship, Partnership, Private Limited, Public Limited and LLP as business types, and the business must fall under one of the export purpose codes Razorpay lists. International card payments need a website with terms, privacy, refund and shipping policy pages. Razorpay says it cannot offer international payments to NGOs.61611
  • Best for: Local transfers from the US, UK and eurozone.6

How do PayPal and Razorpay fees and FX markup compare?

PayPal and Razorpay 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 Razorpay charge?

Transaction typeFeeFX markupGST on feesBest for
MoneySaver Export Account: bank transfer to virtual account details (Standard plan)INR 1000 up to INR 100,000; 1% above that120%Not statedClients paying by local bank transfer
FlashLinks (US) payment link paid by ACH debit2%10%Not statedClients paying through a payment link
International cards and wallets3%2Not published18%Clients paying by card

How do PayPal and Razorpay compare on settlement speed?

PayPal and Razorpay 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.9PayPal 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).93Clients paying by card or PayPal balance5
RazorpayPush bank transfers (ACH, FPS, SEPA, SWIFT): T+1 from capture or from when invoice details are shared, whichever is later. Flash Links (ACH debit): around T+5 business days. International cards: Razorpay's FAQ refers to a T+7 working day settlement period, with early settlement at an additional, unpublished charge.610111Automatic settlement in INR to the Indian bank account after Razorpay deducts its charges. Funds cannot be held in the foreign currency accounts. Razorpay also says it supports non-INR settlement to an EEFC account. No separate withdrawal fee is published.6Local transfers from the US, UK and eurozone6

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

PayPal and Razorpay 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.41

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 2026.51718Clients paying by card or PayPal balance5
RazorpayRazorpay 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.6122Razorpay Payments Private Limited (formerly Razorpay Software Private Limited) appears on the RBI list of authorised payment system operators as a Payment Aggregator: Online, Physical, and Cross Border facilitating Inward and Outward transactions (PA-CB I and O).18Local transfers from the US, UK and eurozone6

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

PayPal and Razorpay 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.133The 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.5313Buyers 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
RazorpayVirtual local accounts in USD, GBP and EUR plus a SWIFT account; Razorpay's docs list other currencies (such as SGD, AED, AUD, CHF, DKK, SEK and CAD accounts) as coming soon on the dashboard. Card payments are accepted in around 135 currencies, according to Razorpay.67Bank transfer to virtual account details (ACH in USD, FPS in GBP, SEPA in EUR, and SWIFT), ACH debit through Flash Links for US payers, or international card and wallet payments through Razorpay checkout or payment links.6107Yes, international cards (Visa, Mastercard, Amex, Diners, Discover, JCB, UnionPay listed on the pricing page) and wallets such as Apple Pay and Google Pay, at up to 3% per successful transaction plus 18% GST.27Local transfers from the US, UK and eurozone6

What are the strengths and limitations of PayPal and Razorpay?

PayPal and Razorpay 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.13
  • 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.1718

What are the strengths and limitations of Razorpay?

Strengths:

  • You want clients in the US, UK or eurozone to pay by local bank transfer (ACH, FPS or SEPA) and receive INR in your Indian bank account the next business day after invoice details are shared.6
  • You want to offer international card or wallet checkout on your own website alongside bank transfers, from one dashboard.716
  • You are paid through Upwork, Deel, Toptal, Freelancer, Fiverr or Amazon and want those payouts to land in a virtual account; Razorpay says invoice upload is not required for Amazon, Upwork and Freelancer transactions.642

Limitations:

  • Every MoneySaver payment needs an invoice and buyer address uploaded before Razorpay settles it, except Amazon, Upwork and Freelancer platform transactions.642
  • Transactions below ₹1,00,000 attract a flat fee of ₹1,000 instead of the 1% fee.1
  • Funds cannot be held in the foreign currency accounts; they are converted and settled.6
  • Refunds are not supported on push bank transfers, and ACH debit (Flash Links) payments can be reversed by the payer through a chargeback.610
  • International card acceptance needs a website with policy pages and approval by Razorpay's banking partners, and the conversion markup on card payments is not published.168
  • Only the purpose codes on Razorpay's list can use the MoneySaver account; P0807 is not on that list.6

Should you choose PayPal or Razorpay?

Choose between PayPal and Razorpay 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 Razorpay if:

  • You want clients in the US, UK or eurozone to pay by local bank transfer (ACH, FPS or SEPA) and receive INR in your Indian bank account the next business day after invoice details are shared.6
  • You want to offer international card or wallet checkout on your own website alongside bank transfers, from one dashboard.716
  • You are paid through Upwork, Deel, Toptal, Freelancer, Fiverr or Amazon and want those payouts to land in a virtual account; Razorpay says invoice upload is not required for Amazon, Upwork and Freelancer transactions.642

For example, say a designer invoices a US client USD 2,000 by bank transfer. On published fees, Razorpay 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 Razorpay?

Other platforms to consider besides PayPal and Razorpay are the ones with the lowest estimated cost on a USD 5,000 receipt, listed in that order.222324252627293031333435373839

PlatformBest forEstimated cost on USD 5,000FIRAReview
SkydoLocal bank transfers from major markets210.68%222324252627Skydo says it issues a free FIRA on every payment received, and that its FIRA and FIRC are accepted for GST filing and by banks.2628Skydo review
Karbon BusinessUS bank transfers and marketplace payouts291.00 to 1.18%2930Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.29Karbon Business review
WinvestaLocal transfers with a published per-payment fee31321.24%31333435Free 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.3433Winvesta review
PayoneerMarketplace payouts such as Amazon or Upwork361.00 to 4.00%373839Free 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.3940Payoneer 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]Razorpay, MoneySaver Export Account (international bank transfers) (checked 2026-10-28)
  2. [2]Razorpay, Pricing (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]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  7. [7]Razorpay, Accept International Payments (checked 2026-10-28)
  8. [8]Razorpay Docs, Currency Conversion (checked 2026-10-28)
  9. [9]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  10. [10]Razorpay Docs, Flash Links (ACH Debit) (checked 2026-10-28)
  11. [11]Razorpay Docs, International Payments FAQs (checked 2026-10-28)
  12. [12]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  13. [13]PayPal India Help, Can I use PayPal to receive payments from Indian customers? (checked 2026-10-28)
  14. [14]PayPal India, Four steps to complete your KYC (checked 2026-10-28)
  15. [15]PayPal India Help, How do I receive payments through PayPal? (checked 2026-10-28)
  16. [16]Razorpay Docs, International Debit and Credit Cards (checked 2026-10-28)
  17. [17]RBI, Status of Applications received under Payment and Settlement Systems Act, 2007, as on 16.10.2026, Table D (checked 2026-10-28)
  18. [18]RBI, Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, 16 October 2026 (checked 2026-10-28)
  19. [19]Razorpay, Support (checked 2026-10-28)
  20. [20]RBI: Master Direction on Regulation of Payment Aggregators, 15 September 2025
  21. [21]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  22. [22]Skydo FAQ, How much does Skydo charge? (checked 2026-10-28)
  23. [23]Skydo, Home page (checked 2026-10-28)
  24. [24]Skydo FAQ, Who will bear the SWIFT charges? (checked 2026-10-28)
  25. [25]Skydo FAQ, Limitations and restrictions on receiving your foreign remittance via Skydo (checked 2026-10-28)
  26. [26]Skydo, Receive international payments in India as a freelancer (checked 2026-10-28)
  27. [27]Skydo, Terms of use (checked 2026-10-28)
  28. [28]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  29. [29]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  30. [30]Karbon, PayPal alternative (checked 2026-10-28)
  31. [31]Winvesta FAQs, What are the charges for the global collections account? (checked 2026-10-28)
  32. [32]Winvesta FAQs, What currencies are available with local accounts? (checked 2026-10-28)
  33. [33]Winvesta, Multi-currency account (checked 2026-10-28)
  34. [34]Winvesta FAQ, When will I receive my e-FIRA certificate? (checked 2026-10-28)
  35. [35]Winvesta FAQ, Can I get priority processing for my withdrawal? (checked 2026-10-28)
  36. [36]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  37. [37]Payoneer India, Payoneer Fees (checked 2026-10-28)
  38. [38]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  39. [39]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  40. [40]Payoneer India, Digital FIRC page (checked 2026-10-28)
  41. [41]DGFT: eBRC services (self-generation of e-BRC from bank inward remittance data)
  42. [42]Razorpay Docs, Manage Invoices and Transactions (International Bank Transfer) (checked 2026-10-28)
  43. [43]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)

Frequently asked questions

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

Razorpay 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 Razorpay 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 Razorpay: 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.6122

Can individual freelancers use PayPal and Razorpay?+

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).51415 Razorpay: Indian businesses with a completed Razorpay KYC. The MoneySaver onboarding form lists Individual, Sole Proprietorship, Partnership, Private Limited, Public Limited and LLP as business types, and the business must fall under one of the export purpose codes Razorpay lists. International card payments need a website with terms, privacy, refund and shipping policy pages. Razorpay says it cannot offer international payments to NGOs.61611

Are PayPal and Razorpay 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 2026.51718 Razorpay: Razorpay Payments Private Limited (formerly Razorpay Software Private Limited) appears on the RBI list of authorised payment system operators as a Payment Aggregator: Online, Physical, and Cross Border facilitating Inward and Outward transactions (PA-CB I and O).18

How fast do PayPal and Razorpay 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.9 Razorpay: Push bank transfers (ACH, FPS, SEPA, SWIFT): T+1 from capture or from when invoice details are shared, whichever is later. Flash Links (ACH debit): around T+5 business days. International cards: Razorpay's FAQ refers to a T+7 working day settlement period, with early settlement at an additional, unpublished charge.610111

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

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, Razorpay or a bank wire.43

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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