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PayPal, Wise or Payoneer: Which Actually Charges the Least to Receive Payments in India

Q: Is GST charged on PayPal, Wise and Payoneer fees?

Wise says 18% GST applies to its fees. PayPal India's fee page does not mention GST on its fees, while its custom FIRA is priced plus 18% GST. Skydo and Razorpay quote their fees plus GST. Check the fee statement in your account for Payoneer.

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 31 October 2026
Last modified: 31 October 2026
Fees checked on: 28 October 2026
Reading time: 7 min read

Short answer

On a USD 5,000 receipt, Payoneer's published cost is 1% to 4%, the INR conversion fee on a USD receipt that its multi-currency page lists as free; its pricing page lists a fixed fee or 1% for non-local currencies.¹² PayPal's is about 7.27% to 8.23%, from 4.40% plus a fixed fee and a 3.0% or 4.00% conversion spread.³ Wise cannot be estimated, since it publishes no INR conversion percentage.⁴ Skydo has the lowest 2026 estimate.⁵

Applies to	Rules involved	Platforms compared	Last verified
Indian freelancers and exporters comparing receiving costs³⁶²	FEMA 2026 Regulations, regulation 5; PA Master Direction para 11(d); GST on platform fees⁷⁸⁶	Skydo, Razorpay, Karbon Business, Payoneer, PayPal, Wise⁵⁹¹⁰²³⁶	31 October 2026

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	PayoneerLocal 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	PayPalInternational 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.

"Cheapest" depends on which layers you count: the receiving fee, the currency conversion, any payout fee and GST on the fee. PayPal, Wise and Payoneer each charge in a different layer, so headline rates are not comparable until you add them up.³⁶² This page adds them up from each provider's published pages, and includes the platforms that cost least on those fees.

How do PayPal, Wise and Payoneer compare on what they charge in India?

PayPal charges on the sale and on conversion, Payoneer on conversion to INR, and Wise per transfer plus a currency-dependent conversion fee; Skydo, Razorpay and Karbon Business are added as the lowest estimated cost on published fees for a USD 5,000 receipt.³²⁶⁵⁹¹⁰ Rows run by that estimate, cheapest first; Wise cannot be estimated and follows.

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Skydo	Local bank transfers from major markets¹³	USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above USD 10,000⁵	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)¹⁴²⁸	Within 24 hours (product page); T+1 to T+3 business days (terms)¹⁴²⁸	Free FIRA on every payment¹⁴	PA-CB inward and outward, authorised 8 January 2026¹⁵	Skydo FAQs and product page⁵¹⁴
Razorpay	Local transfers from the US, UK and eurozone¹⁶	1% plus GST on MoneySaver bank transfers, with a flat fee on small transactions⁹	0% on MoneySaver bank transfers⁹	T+1 for bank transfers¹⁶	FIRS within 24 hours of settlement¹⁶	PA-CB inward and outward¹⁵	Razorpay docs and pricing¹⁶⁹
Karbon Business	US bank transfers and marketplace payouts¹⁷	1% transaction fee, per Karbon's PayPal comparison page¹⁰	0% per the freelancer page; 0.5% to 1.0% per the comparison page¹⁷¹⁰	24 to 48 hours¹⁷	FIRA for every transaction from a banking partner¹⁷	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB¹⁸¹⁵	Karbon pages and terms¹⁷¹⁸
Payoneer	Marketplace payouts such as Amazon or Upwork¹⁹	Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); 1% to 4% to convert to INR¹²	Not published separately from the conversion fee²	Within 24 hours (multi-currency account page); within 48 hours (pricing page)²¹	Free digital FIRA per transaction²⁰	In-principle PA-CB authorisation, 22 January 2026; not on the authorised list²¹²²¹⁵	Payoneer pricing and FAQs²²⁰
PayPal	Clients paying by card or PayPal balance²³	4.40% plus a fixed fee, for example 0.30 USD, per international commercial transaction³	3.0% or 4.00% above the base exchange rate³	Up to 5 business days to the bank²⁴	Free weekly digital FIRA from February 2026¹²	In-principle authorisation as an existing PA-CB; not on the authorised list²²¹⁵	PayPal fees, FIRA and help pages³¹²²⁴
Wise	Bank transfers to local account details⁶	Equivalent of 2 USD per transfer to India (help article); free e-FIRC (receive pricing page)⁶⁴	Conversion fee varies by currency; no INR percentage published⁴	INR within 1 to 2 days after Wise receives the payment⁶	e-FIRC per transfer within 3 working days⁶	PA-CB inward, authorised 12 March 2026¹⁵	Wise help and pricing⁶⁴

Cost is one criterion; how your client can pay narrows the list first.

Which RBI rule governs the money you receive through PayPal, Wise or Payoneer?

The money is export income under the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, whichever platform carries it, and platform transactions are capped by RBI's payment aggregator rules.⁷⁸

Rule	Best for	Plain meaning	Source
Regulation 5, 2026 Regulations	Every services exporter	Realise within nine months of the invoice date; twelve months for rupee invoices⁷²⁵	RBI⁷²⁵
Regulation 6, 2026 Regulations	Exporters paid less than invoiced after fees	The AD bank can allow a reduction in export value, on declaration alone up to ₹10 lakh⁷	RBI⁷
PA Master Direction, para 11(d)	Exporters paid through a PA-CB	₹25 lakh limit per cross-border transaction⁸	RBI⁸
PayPal user agreement	PayPal sellers	Export Payment Services above USD 10,000 per transaction are a restricted activity²³	PayPal²³

Platform fees reduce what reaches your bank, so keep the FIRA and the fee statement together for your records.

What does each option charge at each layer?

Each option charges at different layers, and adding them gives the estimated cost on a USD 5,000 receipt.⁵⁹¹⁰²³⁶

Option	Best for	Receiving fee	Conversion to INR	Estimated cost on USD 5,000	Source
Skydo	Local bank transfers from major markets¹³	USD 29 plus GST⁵	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)¹⁴²⁸	About 0.68%⁵¹⁴	Skydo⁵¹⁴
Razorpay MoneySaver	Local transfers from the US, UK and eurozone¹⁶	1% plus GST⁹	0% markup⁹	About 1.00% to 1.18%⁹	Razorpay⁹
Karbon Business	US bank transfers and marketplace payouts¹⁷	1%¹⁰	0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)¹⁷¹⁰	About 1.00% to 1.18%¹⁰	Karbon¹⁰¹⁷
Payoneer	Marketplace payouts such as Amazon or Upwork¹⁹	Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page)¹²	1% to 4%²	1% to 4%¹²	Payoneer¹²
PayPal	Clients paying by card or PayPal balance²³	4.40% plus 0.30 USD³	3.0% or 4.00%³	About 7.27% to 8.23%³	PayPal³
Wise	Bank transfers to local account details⁶	2 USD equivalent per transfer (help article), plus 18% GST; free e-FIRC (receive pricing page)⁶⁴	Varies by currency; not published for INR⁴	Not estimable from published pages⁴	Wise⁶⁴

Wise's calculator shows its conversion fee for a given amount, which is the way to compare Wise directly.⁴

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option on published fees is Skydo at $5,000, while at smaller amounts its flat fee narrows or reverses the gap with percentage pricing.⁵⁹

Platform	Best for	INR on USD 2,000	INR on USD 5,000	INR on USD 10,000	Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹1,86,373	₹4,67,991	₹9,39,206	0.68%
Karbon BusinessBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹1,86,262 to ₹1,86,601	₹4,65,655 to ₹4,66,503	₹9,31,311 to ₹9,33,007	1.00 to 1.18%
RazorpayMoneySaver 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 ₹9,33,007	1.00 to 1.18%
PayoneerLocal 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%

Not estimated because pricing for USD is not fully published: Wise.

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.

For example, PayPal's 4.40% plus 0.30 USD on $500 is about 4.46% before the conversion spread,³ while Skydo's USD 19 on $500 is 3.8% before GST.⁵ At $5,000, Skydo's USD 29 is 0.58% before GST.⁵

What documents do you get from each option?

Each option gives a FIRA, e-FIRC or statement, and the fee you pay does not change the export documents you keep yourself.¹⁴¹⁶¹⁷²⁰¹²⁶

Option	Best for	Document	Cost of the document	Source
Skydo	Local bank transfers from major markets¹³	FIRA per payment¹⁴	Free¹⁴	Skydo¹⁴
Razorpay	Local transfers from the US, UK and eurozone¹⁶	FIRS after settlement¹⁶	No separate charge published¹⁶	Razorpay¹⁶
Karbon Business	US bank transfers and marketplace payouts¹⁷	FIRA per transaction¹⁷	Not published¹⁷	Karbon¹⁷
Payoneer	Marketplace payouts such as Amazon or Upwork¹⁹	Digital FIRA per transaction²⁰	Free²⁰	Payoneer²⁰
PayPal	Clients paying by card or PayPal balance²³	Weekly digital FIRA; custom FIRA on request¹²	Weekly FIRA free; custom FIRA charged¹²	PayPal¹²
Wise	Bank transfers to local account details⁶	e-FIRC per transfer⁶	No separate charge on Wise's pricing page⁴	Wise⁶⁴

Your own export invoice, LUT and, from 1 October 2026, EDF stay the same whichever option you choose.²⁶²⁷⁷

What changes in 2026 for the cost of receiving payments in India?

The 2026 changes affecting cost are mostly about who is licensed and what documents come free.¹⁵¹²²¹

PayPal FIRA: PayPal moved to a free weekly digital FIRA from February 2026.¹²
Wise licence: Wise was authorised as a PA-CB for inward transactions on 12 March 2026.¹⁵
Payoneer licence: Payoneer India received in-principle PA-CB authorisation on 22 January 2026.²¹
Skydo licence: Skydo was authorised as a PA-CB for inward and outward transactions on 8 January 2026.¹⁵
EDF: From 1 October 2026, every services exporter files an EDF with the AD bank.⁷

Use the platform cost comparison for your own amount, and see cheapest way to receive USD in India.

How did we verify this?

We checked this page against the sources below on 31 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

What is the cheapest platform to receive international payments in India?+

On published fees for a USD 5,000 receipt, Skydo has the lowest estimated cost at about 0.68%, followed by Razorpay and Karbon Business at about 1.00% to 1.18%.⁵⁹¹⁰ Payoneer follows at 1% to 4% and PayPal at about 7.27% to 8.23%.²³ Wise does not publish enough to estimate.⁴

Is PayPal more expensive than Wise for receiving money in India?+

PayPal publishes 4.40% plus a fixed fee per international commercial transaction and a 3.0% or 4.00% conversion spread.³ Wise publishes the equivalent of 2 USD per transfer to India (India help article; its India receive pricing page describes a free e-FIRC) and a conversion fee that depends on the currency, with no INR percentage published.⁶⁴ A like-for-like percentage for Wise is therefore not available.

How much does Payoneer charge to withdraw to an Indian bank?+

Payoneer's India pricing page says withdrawing to an Indian bank account in INR from a balance in another currency costs 1% to 4% of the amount, depending on region and transaction volume, with the exact fee shown in your account.² Its India multi-currency page says receiving USD to the local account is free for Indian customers, and its India pricing page lists a fixed fee or 1% for non-local currencies.¹²

Does Wise charge a fee to receive USD in India?+

Wise's India help article says it charges the equivalent of 2 USD in the received currency for the transfer to the Indian bank account that issues the e-FIRC, and its India receive pricing page describes the e-FIRC as free.⁶⁴ Its general Wise Business fee table lists 6.11 USD per USD wire or Swift payment, with domestic payments free.¹¹ 18% GST applies to Wise fees.⁶

What is the PayPal currency conversion fee for INR?+

PayPal India's fee page 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, with INR listed at 4.00%.³ The page does not say which of the two applies when converting to INR for withdrawal to an Indian bank.

Is GST charged on PayPal, Wise and Payoneer fees?+

Wise says 18% GST applies to its fees.⁶ PayPal India's fee page does not mention GST on its fees, while its custom FIRA is priced plus 18% GST.³¹² Skydo and Razorpay quote their fees plus GST.⁵⁹ Check the fee statement in your account for Payoneer.

Which is cheaper for small payments of $500 or less?+

For small payments, flat fees weigh more. Skydo's USD 19 fee on a $500 receipt is 3.8% before GST.⁵ Razorpay MoneySaver applies a flat fee below a published threshold.⁹ PayPal's 4.40% plus 0.30 USD stays a percentage, plus conversion.³ The live table shows the INR you receive at today's rate.

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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