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PayPal, Wise or Stripe: What STPI Rules and the EDF That Superseded SOFTEX Mean for Software Exporters Getting Paid

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Editorial team, serviceexportguide.com
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Short answer

RBI Circular No. 20 of 16 January 2026 supersedes the SOFTEX circulars from 1 October 2026.3 From that date software exports are declared on an Export Declaration Form under the FEMA 2026 Regulations.1 The STP scheme is a 100% export-oriented scheme under Chapter 6 of the Foreign Trade Policy 2023.1213 Wise is an authorised PA-CB; Stripe is an online aggregator.6

Applies toRules involvedPlatforms comparedLast verified
Indian software and IT services exporters, including STP units112FEMA Export and Import Regulations, 2026; RBI Circular No. 20 of 2026; Foreign Trade Policy 2023, Chapter 6; IGST Act section 2(6)131314Razorpay, Karbon Business, Skydo, PayPal, Stripe, Wise22252831353931 October 2026

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%
6PayPalInternational 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.

A Pune product engineering company billing a Boston client for a monthly sprint, or a Chandigarh STP unit maintaining software for a Frankfurt bank, used to file SOFTEX forms for each export. Searches still ask what SOFTEX and STPI rules mean for getting paid, but RBI Circular No. 20 of 16 January 2026 supersedes the SOFTEX circulars from 1 October 2026, so this page uses the current Export Declaration Form (EDF) rules and treats STPI as it now works.13

For the change itself, read SOFTEX replaced by EDF; for registration, read STPI registration for software exporters. Confirm your position with a chartered accountant (CA).

How do PayPal, Wise and Stripe compare for software exporters?

PayPal, Wise and Stripe compare as follows for software exporters: PayPal charges 4.40% plus a fixed fee, Wise charges a 2 USD equivalent per INR transfer (India help article; its India receive pricing page describes a free e-FIRC) and is an authorised PA-CB, and Stripe charges 3% to 4.3% on cards issued abroad and is an online aggregator offering cross-border services by invite.63135394336 Razorpay, Karbon Business and Skydo are the three lowest-cost providers for a $2,000 USD receipt on published fees.222628

The table is sorted by estimated cost on a $2,000 USD receipt, cheapest first; Stripe and Wise follow A to Z because their INR cost is not fully published.3644

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
RazorpayLocal transfers from the US, UK and eurozoneMoneySaver bank transfer 1%, flat ₹1,000 below ₹1,00,000; GST applies0% on MoneySaver transfersT+1 for push bank transfersFIRS emailed within 24 hours of settlementAuthorised PA-CB, inward and outward62223
Karbon BusinessUS bank transfers and marketplace payouts1% transaction fee listed on its PayPal comparison page0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)24 to 48 hoursFIRA for every transaction from an unnamed partner bankNot on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB6252627
SkydoLocal bank transfers from major marketsUSD 19 + GST up to USD 2,000; USD 29 + GST to USD 10,000; 0.3% + GST above0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)Within 24 hours (product page); T+1 to T+3 business days (terms)Free FIRA on every paymentAuthorised PA-CB, inward and outward, 8 January 2026628293045
PayPalClients paying by card or PayPal balance4.40% plus a fixed fee, for example 0.30 USD3.0% or 4.00% above the base rateUp to 5 business days to the bankFree weekly digital FIRA from February 2026In-principle authorisation as an existing PA-CB; not on RBI's authorised list of 16 October 2026731323334
StripeCard checkout and subscriptions3% for Visa or Mastercard issued abroad; 3.5% for American Express; 4.3% for non-INR presentmentAdditional 2% if conversion is requiredDaily payouts include international card payments made five business days earlierStandard Chartered emails a payment advice; request the FIRC from your own bankAuthorised PA-Online, not PA-CB; cross-border services invite-only63941424344
WiseBank transfers to local account detailsEquivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on Wise feesMid-market rate plus a currency-dependent fee; no INR percentage publishedINR in 1 to 2 days after Wise receives fundse-FIRC per transfer within 3 working daysAuthorised PA-CB, inward, 12 March 20266353637

Enterprise software contracts often exceed RBI's ₹25 lakh cap per PA-CB transaction and PayPal's USD 10,000 restricted-activity line, so they usually go by bank wire.532

Which RBI and GST rules apply to software exporters?

Software exporters follow the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), in force from 1 October 2026, and RBI Circular No. 20 of 16 January 2026 for the money, and the IGST Act for GST.1314

RuleBest for (who it applies to)Plain meaningSource
RBI Circular No. 20, 16 January 2026Software exporters that filed SOFTEXSOFTEX circulars superseded from 1 October 20263
2026 Regulations, regulations 2 and 3All software exportersEDF to the specified authority within 30 days from the end of the invoice month; STPI is a specified authority for software exports1
2026 Regulations, regulation 5All software exportersRealisation within nine months of invoice; twelve months if invoiced in rupees12
Foreign Trade Policy 2023, Chapter 6STP units100% export orientation; positive net foreign exchange counted in five-year blocks1213
PA Master Direction, paragraphs 11(d) and 11(h)Exporters paid through a PA-CB₹25 lakh per transaction; the PA-CB gives the AD bank documents to close EDPMS entries5
IGST Act sections 2(6) and 16All software exportersExports meeting five conditions are zero-rated; an LUT allows invoices without IGST141516

An IT company billing its own foreign branch fails condition (v) of section 2(6), while a subsidiary billing its foreign parent can still export, according to CBIC Circular No. 161/17/2021-GST.1419

Which purpose code applies to a software exporter?

A software exporter usually reports receipts under P0802 or P0807, the two software export codes in RBI's list.910 Which one banks prefer for off-site software after SOFTEX was superseded is not settled, so agree the code with your AD bank.3

CodeBest for (transaction type)Official RBI descriptionSource
P0802Custom development, implementation and consultingSoftware consultancy/implementation (other than those covered in SOFTEX form)910
P0807Software developed in India and delivered onlineOff-site Software Exports910
P0804Support and maintenance contractsRepair and maintenance of computer and software910
P0803Data processing and database workData base, data processing charges910

The codes come from RBI Circular No. 84 of 29 February 2012.8 Stripe allows one purpose code per account from a fixed list, and Razorpay's MoneySaver list includes P0802 but not P0807.2440 See purpose code for software export.

Which option is cheapest for a software exporter at $500, $2,000 and $5,000?

On published fees, local bank transfer providers cost a software exporter the least at $2,000 and $5,000, and card routes and PayPal cost more because their fees are percentages.22283139 The table below calculates rupees received at today's rate.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 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 ₹9,33,0071.00 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%

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 $5,000 sprint invoice Skydo's USD 29 fee is 0.58% before GST, while a card issued abroad charged in USD on Stripe costs 4.3%, plus 2% if conversion is needed.283944 On a $500 support invoice PayPal's 4.40% plus 0.30 USD is 4.46% before conversion.31

What documents follow each payment to a software exporter?

Each payment to a software exporter needs an EDF, a FIRA or equivalent, an e-BRC and, for GST, an invoice under an LUT with the rule 46 endorsement.1111618

DocumentBest forWho issues it and whenSource
EDFEvery software export from 1 October 2026Exporter files with the AD bank or STPI within 30 days from the end of the invoice month1
FIRA, e-FIRC or payment adviceProof of the foreign creditWise e-FIRC per transfer; PayPal weekly FIRA; Stripe's bank emails a payment advice333542
e-BRCGST refund recordsSelf-generated on the DGFT portal from the bank's inward remittance message11
LUTRegistered software exportersFORM GST RFD-11 for each financial year1617

The PA-CB must give the AD bank the documents or information needed to close the export entry in EDPMS.5 See EDPMS for service exporters.

What changes in 2026 for software exporters?

For software exporters, 2026 ended SOFTEX filings from 1 October 2026, made STPI a specified authority for the EDF and returned realisation to nine months.123

  • SOFTEX: Superseded by RBI Circular No. 20 from 1 October 2026.3
  • EDF: Every service exporter files an EDF under the 2026 Regulations.14
  • Realisation: Nine months from invoice, twelve months for rupee invoices.2
  • Aggregators: Wise was authorised as a PA-CB on 12 March 2026; Stripe says it withdrew its PA-CB application on RBI guidance.643
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026; information technology is a specified profession in section 62(4).2021

Ask your bank how unpaid invoices raised before 1 October 2026 under SOFTEX are tracked.3

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.

  1. [1]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, amended up to 22 September 2026, regulations 2, 3, 4, 5 and 19
  2. [2]RBI: Notification FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  3. [3]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the SOFTEX circulars from 1 October 2026)
  4. [4]RBI: Press release on the FEMA (Export and Import of Goods and Services) Regulations, 2026 and Directions, 16 January 2026
  5. [5]RBI: Master Direction on Regulation of Payment Aggregator, 15 September 2025, paragraphs 11(d), 11(h) and 19 (checked 2026-10-31)
  6. [6]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators list dated 16 October 2026 (checked 2026-10-28)
  7. [7]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16.10.2026 (checked 2026-10-28)
  8. [8]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (revised purpose codes)
  9. [9]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  10. [10]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023 (reproduces RBI receipt code descriptions)
  11. [11]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023
  12. [12]STPI: Software Technology Park (STP) Scheme page (page states last updated 23 January 2021; checked 2026-10-28)
  13. [13]DGFT: Foreign Trade Policy 2023, Chapter 6 (Revised FTP v1.2.2), EOUs, EHTPs, STPs and BTPs, paragraphs 6.00 to 6.07
  14. [14]CBIC: IGST Act, 2017, section 2(6) (export of services)
  15. [15]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  16. [16]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  17. [17]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on acknowledgement)
  18. [18]CBIC: CGST Rules, 2017, rule 46 (tax invoice, export endorsement)
  19. [19]CBIC: Circular No. 161/17/2021-GST (establishments of a distinct person)
  20. [20]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  21. [21]Income Tax Department: Income-tax Act, 2025, section 62 (specified profession, sub-section (4))
  22. [22]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  23. [23]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  24. [24]Razorpay Docs, About Purpose Codes (checked 2026-10-28)
  25. [25]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  26. [26]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  27. [27]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  28. [28]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  29. [29]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  30. [30]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  31. [31]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  32. [32]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  33. [33]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  34. [34]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  35. [35]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  36. [36]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  37. [37]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  38. [38]Wise Help Centre, How to verify your Indian business to receive payments (checked 2026-10-28)
  39. [39]Stripe India, Pricing (checked 2026-10-28)
  40. [40]Stripe Docs, Accept international payments from India (checked 2026-10-28)
  41. [41]Stripe Support, Payout schedule for Stripe accounts in India (checked 2026-10-28)
  42. [42]Stripe Support, FIRC/payment advice for international transactions in India (checked 2026-10-28)
  43. [43]Stripe Support, Cross-border payment services in India (checked 2026-10-28)
  44. [44]Stripe Support, Additional pricing information for Indian cross-border sellers (checked 2026-10-28)
  45. [45]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

Is SOFTEX still required for software exports from India?+

SOFTEX is not used for new software exports from 1 October 2026. RBI A.P. (DIR Series) Circular No. 20 of 16 January 2026 supersedes the SOFTEX circulars from that date, and software exports are declared on the Export Declaration Form under the FEMA (Export and Import of Goods and Services) Regulations, 2026.13

Does STPI certify the EDF for software exports?+

STPI is one of the specified authorities for the Export Declaration Form on software exports from units outside Special Economic Zones under the FEMA 2026 Regulations. For SEZ units the specified authority is the Development Commissioner, while realisation extensions still sit with the AD bank.1

Do software freelancers need STPI registration?+

Software freelancers do not need STPI registration to export services. STPI's published procedure covers companies in software development, IT and IT-enabled services, and electronics hardware manufacturing that choose the STP scheme. Freelancers still file the EDF with their bank from 1 October 2026.112

How does EDPMS work for software export payments?+

EDPMS is the RBI system where the AD bank tracks each export until proceeds are realised. When a payment aggregator settles the money, it must give the AD bank the documents or information the exporter needs so the bank can close the EDPMS entry, under paragraph 11(h) of RBI's Payment Aggregator Master Direction.5

Can an STP unit get paid through Stripe or Wise?+

An STP unit is a company, so it can apply for Wise Business, which onboards private limited companies and LLPs, or request a Stripe invite for international payments. Each export still needs an EDF and realisation within nine months, whichever channel the client pays through.123840

What is the minimum net foreign exchange requirement for an STP unit?+

An STP unit must be a positive net foreign exchange earner, counted cumulatively in blocks of five years, under Chapter 6 of the Foreign Trade Policy 2023. Units in Software Technology Parks have no minimum investment requirement, unlike Export Oriented Units, which need ₹1 crore in plant and machinery.13

Which purpose code replaces SOFTEX-based codes after October 2026?+

RBI has not issued a new purpose code list for software exports after SOFTEX. P0802 covers software consultancy and implementation other than that covered in SOFTEX form, and P0807 covers off-site software exports. Which one banks prefer after SOFTEX ended is not settled, so ask your AD bank.3910

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.

Keep reading

RBI and FEMA

How did the EDF replace SOFTEX, and what happens to older SOFTEX forms?

How the EDF replaced SOFTEX on 1 October 2026, which RBI instruments did it, and what the rules say about SOFTEX forms and invoices from before that date.

Setup

How does STPI registration work for software and IT services exporters?

How the Software Technology Park scheme works under FTP 2023 Chapter 6, who registers with STPI, documents, published STPI Bengaluru charges and the EDF role from 2026.

Profession

How should an IT services company in India receive payments from foreign clients?

How Indian IT services companies collect from foreign clients: export test and branch trap, purpose codes after SOFTEX, EDF, realisation and transfer pricing.

Purpose codes

Which purpose code should a software developer or IT company use for export receipts?

Purpose codes for software and IT service exports from India: P0802, P0807, P0803, P0804, P0801 and P0902, how DGFT's IT e-BRC rules use them, and how to choose.

RBI and FEMA

How do EDPMS and the Export Declaration Form work for service exporters?

From 1 October 2026 every Indian service exporter files an Export Declaration Form that feeds EDPMS. What replaced SOFTEX, deadlines and how entries close.