RBI and FEMA

PayPal, Wise or Stripe: What EDPMS and the EDF That Replaced SOFTEX Mean for Agencies Invoicing Clients Overseas

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: 11 min read

Short answer

From 1 October 2026 every service exporter gives an EDF to the AD bank within 30 days from the end of the invoice month.¹ RBI Circular No. 20 supersedes the earlier SOFTEX circulars from that date.² Banks enter each EDF in EDPMS within five working days.¹ Wise is an authorised PA-CB.³⁴ Stripe is authorised only as a PA-O.³⁵⁶⁷⁸

Applies to	Rules involved	Platforms compared	Last verified
Indian agencies (companies, LLPs, partnerships, proprietorships) invoicing clients abroad	FEMA 2026 Regulations, regulations 3, 5, 13 and 18; RBI Circular No. 20; PA Master Direction; IGST Act section 2(6)¹⁹²¹⁰¹¹	Razorpay, Karbon Business, Skydo, PayPal, Stripe, Wise¹²¹³¹⁴¹⁵⁷¹⁶⁴	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.

Agencies in India bill development, design, marketing and production work to clients overseas through PayPal, Wise, Stripe and bank wires. Many still plan around SOFTEX forms and the older export rules. Both changed on 1 October 2026, when the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 replaced the 2015 regulations.¹

Note: This page's title keeps SOFTEX because agencies still search for it, but SOFTEX no longer applies to new exports. RBI Circular No. 20 supersedes the earlier SOFTEX circulars from 1 October 2026, and software exports are now declared on the Export Declaration Form (EDF), which feeds the Export Data Processing and Monitoring System (EDPMS).²¹

This page compares PayPal, Wise and Stripe on the same published facts and explains what EDPMS and the EDF mean for each. See EDPMS for service exporters for the system itself. Confirm your structure with a chartered accountant (CA).

How do PayPal, Wise and Stripe compare for agencies invoicing overseas clients?

PayPal, Wise and Stripe differ for agencies in which entity types they accept, how clients pay, the published fee, the receipt document and RBI status.¹⁵¹⁷¹⁸¹⁹²⁰⁷¹⁶²¹²² Wise takes bank transfers to local account details, PayPal takes PayPal balance and card payments, and Stripe takes card payments through checkout, links, invoices or subscriptions.⁴²³¹⁵²⁴²⁵²¹²⁶⁷ The table lists PayPal, Wise and Stripe, plus the three lowest-cost providers on published fees for a USD 2,000 receipt (Razorpay, Karbon Business and Skydo).²⁷²⁸²⁹³⁰¹³³¹³² Providers with enough published pricing to estimate come first, cheapest first; the rest follow A to Z.

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Razorpay	Local transfers from the US, UK and eurozone	1% plus GST on MoneySaver bank transfers, with a flat fee on small transfers; international cards up to 3% plus GST	0% on MoneySaver bank transfers, per Razorpay; card conversion markup not published	T+1 for push bank transfers	Foreign Inward Remittance Statement (FIRS) emailed within 24 hours of settlement	Authorised PA-CB, inward and outward	¹²²⁷²⁸²⁹³³³⁴³⁵³⁶³
Karbon Business	US bank transfers and marketplace payouts	1% transaction fee listed on its PayPal comparison page	0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)	24 to 48 hours	FIRA for every transaction, from an unnamed banking partner	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB	¹³³⁰³⁷³⁸³⁹
Skydo	Local bank transfers from major markets	USD 19 plus GST up to USD 2,000; USD 29 plus GST up to USD 10,000; 0.3% plus GST above	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)	T+1 to T+3 business days in its terms	Free FIRA on every payment	Authorised PA-CB, inward and outward, 8 January 2026	¹⁴³¹³²⁴⁰⁴¹⁴²⁴³³
PayPal	Clients paying by card or PayPal balance	4.40% plus a fixed fee per international commercial transaction (USD 0.30 on USD)	3.0% or 4.00% above the base exchange rate	Up to 5 business days to reach the bank	Free weekly digital FIRA from February 2026	Existing PA-CB with in-principle authorisation on RBI's status list	¹⁵²⁴⁴⁴⁴⁵⁵³
Stripe	Card checkout and subscriptions	3% on international Visa and Mastercard; 3.5% on American Express; 4.3% with non-INR presentment	Additional 2% if conversion is required	Daily payouts of card payments made five business days earlier	Payment advice from Standard Chartered Bank; FIRC requested from your own bank	Authorised PA-O only; PA-CB application withdrawn, cross-border service invite-only	⁷¹⁶⁴⁶⁴⁷⁴⁸⁸³⁵⁶
Wise	Bank transfers to local account details	2 USD equivalent per transfer to the INR account that issues the e-FIRC (help article); free e-FIRC (receive pricing page); 18% GST on Wise fees	Currency-dependent fee over mid-market; INR percentage not published	1 to 2 days to the Indian bank	e-FIRC for each transfer within 3 working days	Authorised PA-CB, inward, 12 March 2026	⁴⁴⁹⁵⁰²³³

Entity types: Wise Business onboards private limited companies, LLPs, general partnerships and proprietorships; Stripe accepts proprietorships, LLPs and companies but not simple partnerships.¹⁹²⁰⁷¹⁶²¹²²
Invoice size: PayPal restricts export payments above USD 10,000 per transaction, and Wise and Stripe cap each export transaction at ₹25 lakh.¹⁵¹⁸⁴¹⁰⁵¹

See payment platforms for agencies for more providers.

Which RBI rule governs EDPMS and the EDF for agencies?

The RBI rules that govern EDPMS and the EDF for agencies are regulations 3, 4, 5, 13 and 18 of the 2026 FEMA export regulations, read with RBI Circular No. 20, which superseded the SOFTEX circulars.¹²

Rule	Best for (who it applies to)	Plain meaning	Source
FEMA (Export and Import of Goods and Services) Regulations, 2026, regulations 3 and 4	Every agency exporting services	From 1 October 2026 every service exporter gives an Export Declaration Form (EDF) to the AD bank within 30 days from the end of the month of invoicing; non-software exporters may instead file on or before the date payment is received.	¹
2026 Regulations, regulation 18(1)	Agencies tracking open export entries with their bank	The AD bank enters each services EDF in the Export Data Processing and Monitoring System (EDPMS) within five working days of receipt, enters inward remittances against exports, and follows up on outstanding entries.	¹
RBI A.P. (DIR Series) Circular No. 20, 16 January 2026	Development and IT agencies that filed SOFTEX	The circular supersedes the earlier SOFTEX circulars from 1 October 2026; software exports are now declared on the EDF under the 2026 Regulations.	²¹
2026 Regulations, regulation 5, as amended on 22 September 2026	Agencies with clients on long payment terms	Export proceeds are realised within nine months from the invoice date, or twelve months for invoices raised or settled in rupees; the AD bank can extend the period.	⁹¹
2026 Regulations, regulation 13	Agencies with long-overdue receivables	If proceeds stay unrealised more than one year after the due date, further exports are allowed only against full advance payment or an irrevocable letter of credit.	¹
RBI Master Direction on Regulation of Payment Aggregator, paragraph 11(d)	Agencies paid through Wise, Skydo, Razorpay or another PA-CB	Each cross-border payment aggregator (PA-CB) transaction is capped at ₹25 lakh, for inward and outward payments alike.	¹⁰
IGST Act, section 2(6)	Agencies billing clients abroad	Work is an export of services only if all five conditions hold: supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange (or INR where RBI permits), and the two are not establishments of one person.	¹¹
IGST Act, section 16(3); FORM GST RFD-11	GST-registered agencies	A registered exporter files a Letter of Undertaking (LUT) for each financial year and invoices exports without IGST; the LUT is deemed accepted when the ARN is generated.	⁵²⁵³⁵⁴
Notification No. 10/2023-Central Tax	Agencies above ₹5 crore turnover	E-invoicing applies to registered persons with aggregate turnover above ₹5 crore from 1 August 2023.	⁵⁵

How does an agency close EDPMS entries for payments through PayPal, Wise or Stripe?

An agency closes EDPMS entries when its AD bank records the inward remittance against the EDF, and the bank follows up with the exporter on outstanding entries.¹ What reaches the bank differs by route:

Wise and other PA-CBs: RBI requires a PA-CB to give the AD bank the documents or information the exporter needs.¹⁰ Wise also emails an e-FIRC for each transfer.⁴⁴⁹
PayPal: PayPal provides a free weekly digital FIRA, and custom FIRAs on request.⁴⁵
Stripe: Standard Chartered Bank emails a payment advice on payout day, which you take to your own bank to request a FIRC.⁸⁷
Open question: How the EDF works in practice for PayPal and PA-CB receipts is not yet clear, so agree the process with your bank.¹

For example, a Bengaluru web agency billing a German client by Wise transfer and a US client through Stripe would file one EDF covering both invoices for the month, then match each FIRA or payment advice to the EDPMS entry.¹

Which purpose code applies to agencies?

The purpose code that applies to an agency follows the main service on each invoice, from the RBI list introduced by Circular No. 84 of 29 February 2012.⁵⁶⁵⁷

Code	Best for (transaction type)	Official RBI description	Source
P0802	Web, app and software development projects	Software consultancy/implementation (other than those covered in SOFTEX form)	⁵⁷⁵⁸
P0807	Software exports your bank classifies as off-site	Off-site Software Exports	⁵⁷⁵⁸
P1007	Advertising, social media and SEO retainers	Advertising, trade fair service	⁵⁷⁵⁸
P1006	Consulting and public relations work	Business and management consultancy and public relations services	⁵⁷⁵⁸
P1101	Video and production work	Audio-visual and related services like Motion picture and video tape production, distribution and projection services.	⁵⁷⁵⁸

Stripe allows one purpose code per account, and Wise asks for it with the business sector on the business profile.⁷¹⁶⁵⁹⁴ An agency selling several services may need separate routes for differently coded receipts. Whether P0802 or P0807 is preferred for off-site software after SOFTEX ended is not settled, so follow your bank's practice.²

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

The cheapest option for agencies changes with invoice size, because a flat fee weighs more on a small invoice and a percentage fee weighs more on a large one.³¹³²²⁷²⁸²⁹ The table below works out the INR received from each provider's published fees at today's exchange rate.

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%
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: Stripe, 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, on a $2,000 invoice Skydo's USD 19 fee is 0.95% of the invoice before GST, and Razorpay's MoneySaver fee is 1% before GST.³¹³²²⁷²⁸²⁹ PayPal's 4.40% plus USD 0.30 is 4.415% of the same invoice, and converting the rest at 3.0% to 4.00% above the base rate brings the total to about 7.28% to 8.24%.²⁴¹⁵ On a $500 invoice, the same USD 19 Skydo fee is 3.8% before GST.³¹³²

Large invoices: A single PA-CB payment cannot exceed ₹25 lakh, so check how a provider handles a bigger invoice before you send it.¹⁰
PayPal ceiling: PayPal's India user agreement lists an export payment above USD 10,000 per transaction as a restricted activity.¹⁵¹⁸
Stripe cards: Stripe charges 3% on an international Visa or Mastercard payment, plus 2% if currency conversion is required.⁴⁶⁴⁷ The platform cost comparison and the USD to INR rate page let you rerun the numbers for your own invoice.

What documents and GST apply to agencies invoicing overseas clients?

Agencies invoicing overseas clients need an export invoice under an LUT, a FIRA, FIRC or payment advice for each receipt, an e-BRC, and a monthly EDF; the work is zero-rated when all five section 2(6) IGST conditions hold.⁶⁰⁵³⁶¹⁶²¹¹¹⁵²

Document	Best for	What it shows	When	Source
Export invoice	Every export invoice an agency raises	Carries the rule 46 export endorsement and the recipient's name, address and country of destination.	With each invoice	⁶⁰
Letter of Undertaking (LUT)	GST-registered agencies, renewed each financial year	Lets a registered exporter invoice without IGST.	Once for each financial year, in FORM GST RFD-11	⁵³⁵⁴
FIRA or FIRC	Agencies claiming GST refunds of input tax credit	Proves the foreign payment was credited; rule 89(2)(c) asks for BRC or FIRC details when claiming a GST refund on exported services.	For each payment, from the bank or payment provider	⁶¹
e-BRC	Showing the export was realised	Electronic Bank Realisation Certificate the exporter self-generates on the DGFT portal from the bank's inward remittance message (IRM).	After the bank reports the receipt	⁶²⁶³
Export Declaration Form (EDF)	Every agency from 1 October 2026, including software exports	Declares the month's service exports to the AD bank; one EDF can cover all exports to one or more recipients in a month.	Within 30 days from the end of the invoice month, or by the payment date for non-software services	¹

What each platform gives:

PayPal: PayPal offers a free weekly digital FIRA from February 2026, with custom FIRAs charged per request.⁴⁵
Stripe: Stripe does not issue a FIRC; Standard Chartered Bank emails a payment advice on payout day, which you present to your own bank to request a FIRC.⁸⁷
Wise: Wise emails an e-FIRC for each transfer within 3 working days.⁴⁴⁹

The export of services checklist for agencies sets out the monthly routine.

What changes in 2026 for agencies invoicing overseas clients?

The 2026 changes for agencies are the new FEMA export regulations from 1 October 2026, the EDF for every service export, SOFTEX being superseded, the nine-month realisation period and the omission of the intermediary rule.¹²⁹⁶⁴

New FEMA regulations: The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 came into force on 1 October 2026 and replaced the 2015 regulations.¹
EDF for every service exporter: From 1 October 2026 every exporter of services, not only software exporters, files an EDF with the AD bank.¹
SOFTEX superseded: RBI Circular No. 20 supersedes the earlier SOFTEX circulars with effect from 1 October 2026, and the EDF now covers software exports.²¹
Realisation back to nine months: The period moved to 15 months from 14 November 2025, returned to nine months from 5 June 2026, and stays at nine months from the invoice date under the amended 2026 Regulations.⁶⁵⁶⁶⁹
Intermediary rule omitted: Section 13(8)(b) of the IGST Act, which put the place of supply of intermediary services at the supplier's location, was omitted from 30 March 2026.⁶⁴
Income-tax Act, 2025: The new Act applies from 1 April 2026, and "tax year" replaces previous year and assessment year, so tax year 2026-27 runs from 1 April 2026 to 31 March 2027.⁶⁷
PA-CB authorisations: RBI's list dated 16 October 2026 shows Skydo authorised on 8 January 2026 and Wise on 12 March 2026, while Payoneer received in-principle authorisation on 22 January 2026.³⁴¹⁴⁶⁸⁶⁹⁷⁰³⁹⁷¹
GST Council recommendation: The 57th GST Council meeting on 8 October 2026 recommended omitting condition (v) of section 2(6) of the IGST Act; this needs a law change and is not in force.⁷²

See SOFTEX replaced by EDF and check EDPMS outstanding entries.

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

Does our agency still file SOFTEX forms for software projects?+

An agency no longer files SOFTEX forms for software exports from 1 October 2026. RBI Circular No. 20 supersedes the earlier SOFTEX circulars from that date, and software exports are declared on the Export Declaration Form under the 2026 FEMA regulations. Ask your bank how it handles SOFTEX forms still pending from before October 2026.²¹

Can an agency file one EDF for all its overseas invoices in a month?+

An agency can file one EDF for all services exported to one or more recipients in a month, under regulation 3(2)(a) of the 2026 FEMA regulations. The EDF is due within 30 days from the end of the month of invoicing, and the bank enters it in EDPMS within five working days.¹

How do I check outstanding EDPMS entries for my agency?+

Your AD bank monitors all transactions in EDPMS for closure of outstanding entries and follows up with the exporter for documents, under regulation 18 of the 2026 FEMA regulations. Ask the bank for a list of your open entries and match each one to a receipt and its FIRA or FIRC.¹

Can a partnership agency open a Wise Business account in India?+

Wise Business in India onboards general partnerships, along with sole traders, sole proprietorships, private limited companies and LLPs; other business types are not currently onboarded. Wise converts each payment to INR and sends it to the verified Indian bank account, with a ₹25 lakh maximum per transaction.¹⁹²⁰⁴¹⁰

Can an agency get Stripe for international card payments in 2026?+

An Indian agency can use Stripe for international card payments only by invite, as a sole proprietorship, LLP or company; simple partnerships and NGOs are not supported. RBI lists Stripe India as a PA-O, and Stripe withdrew its PA-CB application, continuing cross-border services on an invite-only basis.⁷¹⁶²¹²²³⁵⁶⁸

What happens if a client's invoice stays unpaid for over a year after the deadline?+

If export proceeds stay unrealised more than one year after the due date, regulation 13 of the 2026 FEMA regulations allows further exports only against full advance payment or an irrevocable letter of credit. The realisation deadline itself is nine months from the invoice date, which the AD bank can extend.¹⁹

Does a payment aggregator help close my agency's EDPMS entries?+

RBI's payment aggregator directions require a cross-border payment aggregator (PA-CB) to give your AD bank the documents or information the exporter needs. How the EDF works for PA-CB and PayPal receipts in practice is not yet settled, so ask both the provider and your bank before relying on it.¹⁰¹

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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