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PayPal vs Remitly (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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14 min read

Short answer

Remitly publishes enough pricing to estimate the cost of a USD 5,000 receipt, so there is no cost verdict. The better choice depends on how your client pays: PayPal is best for clients paying by card or PayPal balance, and Remitly is best for uS or Canadian business clients already using Remitly.3456

Use caseBetter optionWhy
Bank transfer of USD 5,000Cannot comparePayPal costs about 7.27 to 8.23%; Remitly does not publish full pricing.12
Bank transfer of USD 2,000Cannot comparePayPal costs about 7.28 to 8.24%; Remitly does not publish full pricing.12
Client paying USD 2,000 by card or linkCannot comparePayPal costs about 7.28 to 8.24%; Remitly does not publish full pricing.12
PayPal is best forPayPalClients paying by card or PayPal balance.3
Remitly is best forRemitlyUS or Canadian business clients already using Remitly.456

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%
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 Remitly compare at a glance?

PayPal and Remitly 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.178

PayPalRemitly
Best forClients paying by card or PayPal balance3US or Canadian business clients already using Remitly456
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.1Remitly says there are no fees for the receiver in India. The sender pays the transfer fee: on its USD to INR page, $3.99 below $1,000 and $0 at $1,000 or more for personal transfers, with no fee on a new customer's first transfer.78
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.13Remitly says it may earn from the difference between the rate at which it buys currency and the rate given to the sender. The rate is shown before the sender confirms; no markup percentage is published.98
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.10Remitly says business transfers to India are typically delivered within the hour, and that a delivery time is shown before the sender confirms.5
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.2Not published. Remitly's pages do not mention a FIRA or FIRC for the Indian recipient.
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.111Senders pay in the currency of the send country; Remitly Business sends from the US. Recipients in India receive INR.458
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).31213Senders only. The personal service is for individuals sending for personal, family or household purposes, and business use is a breach. Remitly Business is for US-registered businesses with a US-resident account holder, and Remitly's Canada site says Remitly Business is also available to businesses in Canada. Recipients in India do not need a Remitly account to be paid; Remitly's India page offers recipients a free profile to request money.94576
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 2026.31415Remitly does not appear on the RBI list of authorised PA-CB entities as on 16 October 2026. Its US User Agreement says it processes transactions to India under the Rupee Drawing Arrangements established by the RBI.159
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.Remitly says business customers get 24/7 support by phone or help centre.5
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 $200.313Not published as amounts. Remitly says limits vary by country, delivery method and verification, and are shown when the sender starts a transfer.
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.3111The client sends from a Remitly account: a US or Canadian business through Remitly Business, or an individual through the personal service for personal purposes only. Money arrives in India by bank deposit, UPI, cash pickup or wallet.95166
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.31The sender can fund a transfer with a debit or credit card; the Indian recipient cannot accept card payments through Remitly.59

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

The INR you receive with PayPal and Remitly 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
PayPalMost INRInternational 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.31

  • 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 2026.31415
  • 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).31213
  • Best for: Clients paying by card or PayPal balance.3

What is Remitly and who is it for?

Remitly is a money transfer service whose personal service is limited to individuals sending for personal, family or household purposes; its Remitly Business product lets US businesses pay contractors, freelancers and suppliers in India.95

  • Regulated by: Remitly does not appear on the RBI list of authorised PA-CB entities as on 16 October 2026. Its US User Agreement says it processes transactions to India under the Rupee Drawing Arrangements established by the RBI.159
  • Used by: Senders only. The personal service is for individuals sending for personal, family or household purposes, and business use is a breach. Remitly Business is for US-registered businesses with a US-resident account holder, and Remitly's Canada site says Remitly Business is also available to businesses in Canada. Recipients in India do not need a Remitly account to be paid; Remitly's India page offers recipients a free profile to request money.94576
  • Best for: US or Canadian business clients already using Remitly.456

How do PayPal and Remitly fees and FX markup compare?

PayPal and Remitly 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 currency123 to 4%Not statedClients paying through a payment link

What does Remitly charge?

  • Fees: Remitly says there are no fees for the receiver in India. The sender pays the transfer fee: on its USD to INR page, $3.99 below $1,000 and $0 at $1,000 or more for personal transfers, with no fee on a new customer's first transfer.78

How do PayPal and Remitly compare on settlement speed?

PayPal and Remitly 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.10PayPal 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).101Clients paying by card or PayPal balance3
RemitlyRemitly says business transfers to India are typically delivered within the hour, and that a delivery time is shown before the sender confirms.5Bank deposit, UPI, cash pickup or wallet in INR; the recipient does not need to withdraw anything.1657US or Canadian business clients already using Remitly456

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

PayPal and Remitly 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.36

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.2PayPal'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 2026.31415Clients paying by card or PayPal balance3
RemitlyNot published. Remitly's pages do not mention a FIRA or FIRC for the Indian recipient.Remitly does not appear on the RBI list of authorised PA-CB entities as on 16 October 2026. Its US User Agreement says it processes transactions to India under the Rupee Drawing Arrangements established by the RBI.159US or Canadian business clients already using Remitly456

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

PayPal and Remitly 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.111The 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.3111Buyers 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.31Clients paying by card or PayPal balance3
RemitlySenders pay in the currency of the send country; Remitly Business sends from the US. Recipients in India receive INR.458The client sends from a Remitly account: a US or Canadian business through Remitly Business, or an individual through the personal service for personal purposes only. Money arrives in India by bank deposit, UPI, cash pickup or wallet.95166The sender can fund a transfer with a debit or credit card; the Indian recipient cannot accept card payments through Remitly.59US or Canadian business clients already using Remitly456

What are the strengths and limitations of PayPal and Remitly?

PayPal and Remitly 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.3
  • Individual invoices are at or below USD 10,000, the per-transaction ceiling in PayPal's India user agreement.3
  • You want an export document without a per-payment fee: PayPal provides a free weekly digital FIRA.2

Limitations:

  • The receiving fee is 4.40% plus a fixed fee per international commercial payment, before any currency conversion fee.1
  • 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.1
  • Payments from Indian customers are not supported; only international payments can be received.11
  • Export Payment Services cannot be used for a product or service worth more than USD 10,000 per transaction.3
  • 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.1
  • 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 Remitly?

Strengths:

  • Your client is a US or Canadian business that already uses, or is willing to open, a Remitly Business account to pay contractors in India.456
  • Your client is an individual paying for a personal need, such as private tutoring, which Remitly's personal terms permit.9

Limitations:

  • An Indian freelancer or company cannot open an account to receive or invoice through Remitly; the client must be the Remitly customer.945
  • Remitly Business is offered to businesses in the US and Canada only, and Remitly's personal terms prohibit sending for business purposes.496
  • Remitly is not on the RBI list of authorised PA-CB entities, and its pages do not mention a FIRA, FIRC or purpose code for the Indian recipient.1557

Should you choose PayPal or Remitly?

Choose between PayPal and Remitly 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.3
  • Individual invoices are at or below USD 10,000, the per-transaction ceiling in PayPal's India user agreement.3
  • You want an export document without a per-payment fee: PayPal provides a free weekly digital FIRA.2

Choose Remitly if:

  • Your client is a US or Canadian business that already uses, or is willing to open, a Remitly Business account to pay contractors in India.456
  • Your client is an individual paying for a personal need, such as private tutoring, which Remitly's personal terms permit.9

For example, say a designer invoices a US client USD 2,000. Because Remitly does not publish full pricing for that case, ask for a quote in writing and compare it with the FIRA rate after the first payment.1398

Which other platforms should you consider besides PayPal and Remitly?

Other platforms to consider besides PayPal and Remitly are the ones with the lowest estimated cost on a USD 5,000 receipt, listed in that order.1819202122232526282931333435

PlatformBest forEstimated cost on USD 5,000FIRAReview
SkydoLocal bank transfers from major markets170.68%181920212223Skydo says it issues a free FIRA on every payment received, and that its FIRA and FIRC are accepted for GST filing and by banks.2224Skydo review
Karbon BusinessUS bank transfers and marketplace payouts251.00 to 1.18%2526Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.25Karbon Business review
RazorpayLocal transfers from the US, UK and eurozone271.00 to 1.18%2829Razorpay 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.273029Razorpay 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

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]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  2. [2]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  3. [3]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  4. [4]Remitly Business Account Agreement (US), updated 1 August 2026, sections 3, 4 and 8 (checked 2026-10-28)
  5. [5]Remitly, Business payments from the United States to India (checked 2026-10-28)
  6. [6]Remitly Canada, Remitly Business page and FAQ (checked 2026-10-31)
  7. [7]Remitly India, Receive money in India from family abroad (checked 2026-10-28)
  8. [8]Remitly, USD to INR rate and fees (checked 2026-10-28)
  9. [9]Remitly User Agreement (US), effective 23 February 2026, sections on account use, foreign currency exchange, commercial transactions and transactions to India (checked 2026-10-28)
  10. [10]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  11. [11]PayPal India Help, Can I use PayPal to receive payments from Indian customers? (checked 2026-10-28)
  12. [12]PayPal India, Four steps to complete your KYC (checked 2026-10-28)
  13. [13]PayPal India Help, How do I receive payments through PayPal? (checked 2026-10-28)
  14. [14]RBI, Status of Applications received under Payment and Settlement Systems Act, 2007, as on 16.10.2026, Table D (checked 2026-10-28)
  15. [15]RBI, Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, 16 October 2026 (checked 2026-10-28)
  16. [16]Remitly, Send money to India from the United States (checked 2026-10-28)
  17. [17]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  18. [18]Skydo FAQ, How much does Skydo charge? (checked 2026-10-28)
  19. [19]Skydo, Home page (checked 2026-10-28)
  20. [20]Skydo FAQ, Who will bear the SWIFT charges? (checked 2026-10-28)
  21. [21]Skydo FAQ, Limitations and restrictions on receiving your foreign remittance via Skydo (checked 2026-10-28)
  22. [22]Skydo, Receive international payments in India as a freelancer (checked 2026-10-28)
  23. [23]Skydo, Terms of use (checked 2026-10-28)
  24. [24]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  25. [25]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  26. [26]Karbon, PayPal alternative (checked 2026-10-28)
  27. [27]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  28. [28]Razorpay, MoneySaver Export Account (international bank transfers) (checked 2026-10-28)
  29. [29]Razorpay, Pricing (checked 2026-10-28)
  30. [30]Razorpay Docs, FIRS Automated Process (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]DGFT: eBRC services (self-generation of e-BRC from bank inward remittance data)
  37. [37]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)

Frequently asked questions

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

There is no cost verdict for a USD 5,000 bank transfer: payPal costs about 7.27 to 8.23%; Remitly does not publish full pricing.12 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 Remitly 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.2 Remitly: Not published. Remitly's pages do not mention a FIRA or FIRC for the Indian recipient.

Can individual freelancers use PayPal and Remitly?+

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).31213 Remitly: Senders only. The personal service is for individuals sending for personal, family or household purposes, and business use is a breach. Remitly Business is for US-registered businesses with a US-resident account holder, and Remitly's Canada site says Remitly Business is also available to businesses in Canada. Recipients in India do not need a Remitly account to be paid; Remitly's India page offers recipients a free profile to request money.94576

Are PayPal and Remitly 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 2026.31415 Remitly: Remitly does not appear on the RBI list of authorised PA-CB entities as on 16 October 2026. Its US User Agreement says it processes transactions to India under the Rupee Drawing Arrangements established by the RBI.159

How fast do PayPal and Remitly 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.10 Remitly: Remitly says business transfers to India are typically delivered within the hour, and that a delivery time is shown before the sender confirms.5

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

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, Remitly or a bank wire.37

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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