PayU vs Karbon Business (2026): Which Is Better for Receiving International Payments in India?
- Verified by:
- Editorial team
- Published
- Last modified
- Fees checked on
- Reading time
- 11 min read
Short answer
PayU 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: PayU is best for card or PayPal checkout with INR settlement, and Karbon Business is best for uS bank transfers and marketplace payouts.31
| Use case | Better option | Why |
|---|---|---|
| Bank transfer of USD 5,000 | Cannot compare | Karbon Business costs about 1.00 to 1.18%; PayU does not publish full pricing.12 |
| Bank transfer of USD 2,000 | Cannot compare | Karbon Business costs about 1.00 to 1.18%; PayU does not publish full pricing.12 |
| Client paying USD 2,000 by card or link | Cannot compare | Neither publishes full pricing for this case. |
| PayU is best for | PayU | Card or PayPal checkout with INR settlement.3 |
| Karbon Business is best for | Karbon Business | US bank transfers and marketplace payouts.1 |
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 costThis pageBank 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.
How do PayU and Karbon Business compare at a glance?
PayU and Karbon Business 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.421
| PayU | Karbon Business | |
|---|---|---|
| Best for | Card or PayPal checkout with INR settlement3 | US bank transfers and marketplace payouts1 |
| Fees | 3% for international transactions under the Standard Plan, GST extra. No separate bank transfer receiving fee is published because PayU does not publish a bank transfer collection route.4 | Karbon's PayPal alternative page lists a 1% transaction fee in its feature list; its freelancer page gives no fee amount.21 |
| FX markup | Converted to INR at the rate on the transaction date; PayU says it applies exchange rate or margins on the card issuing currency for dynamic currency conversion. The margin is not published.35 | Karbon's freelancer page says 0% markup on inward remittance; its PayPal comparison page gives a forex markup of 0.5% to 1.0%. The home page says displayed amounts are indicative and depend on the rate booking date.126 |
| Settlement | Typically T+2 business days for international payments.35 | Karbon says international payments reach India within 24 to 48 hours.1 |
| FIRA | PayU says it provides a FIRC on request through the merchant's Key Account Manager. The cost is not published.5 | Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.1 |
| Currencies | PayU says it accepts payments in 135+ currencies and can show local prices in 27 currencies.35 | Karbon names USD, EUR and GBP; the virtual account it describes is in USD.1 |
| KYC: who can sign up | PayU's account activation checklist covers individuals, sole proprietorships, partnerships, LLPs, private and public limited companies and other entity types. International payments must be enabled separately through a PayU Key Account Manager; PayU does not publish which entity types are eligible for them.78 | Karbon markets the service to freelancers, exporters and small businesses. Its forex terms require the user to be duly incorporated under the laws of India. Karbon does not publish whether an unregistered individual can sign up.19 |
| RBI PA-CB status | The RBI lists PayU Payments Private Limited as a Payment Aggregator (online and physical) and as PA-CB I & O, a cross-border payment aggregator facilitating inward and outward transactions, in its list dated 16 October 2026.10 | Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.9106 |
| Support | Existing merchants raise a ticket at help.payu.in or email care@payu.in; new merchants are directed to their account manager or care@payu.in for international rates.3 | WhatsApp +91 74117 02726, sales@karboncard.com, support@karboncard.com and 1-800-309-8470.1 |
| Limits | PayU does not publish a limit for export receipts. RBI rules set a limit of ₹25 lakh per export transaction for PA-CBs.311 | Not published by Karbon. RBI rules set a limit of ₹25 lakh per export transaction for PA-CBs. |
| How clients pay | International credit and debit cards (Visa, Mastercard, American Express) and PayPal at a PayU checkout. PayU does not publish local bank account details or virtual accounts for foreign clients to pay by bank transfer.38 | Bank transfer to a virtual USD account (US account details in the user's name), payment requests or invoices sent by email or WhatsApp, and as a payout method on Upwork, Fiverr and Toptal.1 |
| Card payments | Yes. International card transactions fall under PayU's 3% Standard Plan slab, GST extra.4 | Not published. |
How much INR do you receive on $2,000, $5,000 and $10,000 with PayU vs Karbon Business?
The INR you receive with PayU and Karbon Business 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.
| Platform | Best for | INR on USD 2,000 | INR on USD 5,000 | INR on USD 10,000 | Cost on USD 5,000 |
|---|---|---|---|---|---|
| Karbon BusinessMost INRBank 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% |
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 PayU and who is it for?
PayU is an Indian payment gateway that the RBI lists as a cross-border payment aggregator for inward and outward transactions; its international payments product lets Indian merchants accept foreign cards and PayPal and settles in INR.103
- Regulated by: The RBI lists PayU Payments Private Limited as a Payment Aggregator (online and physical) and as PA-CB I & O, a cross-border payment aggregator facilitating inward and outward transactions, in its list dated 16 October 2026.10
- Used by: PayU's account activation checklist covers individuals, sole proprietorships, partnerships, LLPs, private and public limited companies and other entity types. International payments must be enabled separately through a PayU Key Account Manager; PayU does not publish which entity types are eligible for them.78
- Best for: Card or PayPal checkout with INR settlement.3
What is Karbon Business and who is it for?
Karbon Business is a Bengaluru fintech that markets a virtual USD account, payment requests and inward remittances in INR to Indian freelancers and exporters; its forex terms say export receipts are processed under a payment partner's connected user terms.19
- Regulated by: Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.9106
- Used by: Karbon markets the service to freelancers, exporters and small businesses. Its forex terms require the user to be duly incorporated under the laws of India. Karbon does not publish whether an unregistered individual can sign up.19
- Best for: US bank transfers and marketplace payouts.1
How do PayU and Karbon Business fees and FX markup compare?
PayU and Karbon Business charge in different ways, so compare the fee and the conversion markup together, not the headline fee alone.
What does PayU charge?
| Transaction type | Fee | FX markup | GST on fees | Best for |
|---|---|---|---|---|
| International card or PayPal transaction at PayU checkout (Standard plan) | 3%45 | Not published | Not stated | Clients paying by card |
What does Karbon Business charge?
| Transaction type | Fee | FX markup | GST on fees | Best for |
|---|---|---|---|---|
| Bank transfer to a Karbon virtual USD account | 1%12 | 0% | Not stated | Clients paying by local bank transfer |
How do PayU and Karbon Business compare on settlement speed?
PayU and Karbon Business publish these settlement times for money reaching an Indian bank account.
| Platform | Settlement time | Payout to India | Best for |
|---|---|---|---|
| PayU | Typically T+2 business days for international payments.35 | Settled automatically to the merchant's bank account in INR; PayU's documentation also mentions non-INR settlement. No separate payout fee is published for standard settlement; priority or same-day settlement may carry a nominal fee that is not published.384 | Card or PayPal checkout with INR settlement3 |
| Karbon Business | Karbon says international payments reach India within 24 to 48 hours.1 | Paid in INR to the user's Indian bank account. Payout fee not published.12 | US bank transfers and marketplace payouts1 |
Do PayU and Karbon Business provide FIRA and e-BRC, and are they RBI PA-CB authorised?
PayU and Karbon Business 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.34
| Platform | FIRA | RBI PA-CB status | Best for |
|---|---|---|---|
| PayU | PayU says it provides a FIRC on request through the merchant's Key Account Manager. The cost is not published.5 | The RBI lists PayU Payments Private Limited as a Payment Aggregator (online and physical) and as PA-CB I & O, a cross-border payment aggregator facilitating inward and outward transactions, in its list dated 16 October 2026.10 | Card or PayPal checkout with INR settlement3 |
| Karbon Business | Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.1 | Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.9106 | US bank transfers and marketplace payouts1 |
Which currencies, countries and payment methods do PayU and Karbon Business support?
PayU and Karbon Business accept the currencies and payment methods below, as each publishes them.
| Platform | Currencies | How clients pay | Card payments | Best for |
|---|---|---|---|---|
| PayU | PayU says it accepts payments in 135+ currencies and can show local prices in 27 currencies.35 | International credit and debit cards (Visa, Mastercard, American Express) and PayPal at a PayU checkout. PayU does not publish local bank account details or virtual accounts for foreign clients to pay by bank transfer.38 | Yes. International card transactions fall under PayU's 3% Standard Plan slab, GST extra.4 | Card or PayPal checkout with INR settlement3 |
| Karbon Business | Karbon names USD, EUR and GBP; the virtual account it describes is in USD.1 | Bank transfer to a virtual USD account (US account details in the user's name), payment requests or invoices sent by email or WhatsApp, and as a payout method on Upwork, Fiverr and Toptal.1 | Not published. | US bank transfers and marketplace payouts1 |
What are the strengths and limitations of PayU and Karbon Business?
PayU and Karbon Business each suit some exporters better than others. These points come from each provider's own pages.
What are the strengths and limitations of PayU?
Strengths:
- Your foreign clients prefer to pay by international card or PayPal on a checkout page and you want INR settlement.3
- You want a provider listed by the RBI as a cross-border payment aggregator for inward transactions.10
- You already use PayU for domestic payments and want international payments enabled on the same integration.8
Limitations:
- No bank transfer collection route (local account details for foreign clients) is published; the international product is card and wallet based.38
- The exchange margin on conversion to INR is not published.5
- International payments must be enabled through a Key Account Manager, and the FIRC is also requested through the account manager.85
- PA-CB export transactions are limited to ₹25 lakh each under RBI rules.11
- Priority settlement fees and the conditions behind the Standard Plan's terms and conditions note are not published.4
What are the strengths and limitations of Karbon Business?
Strengths:
- Your clients can pay by US bank transfer to a USD account, or you are paid out by Upwork, Fiverr or Toptal.1
- You want INR in your Indian bank and a FIRA for each receipt.1
Limitations:
- No receiving fee, payout fee or FIRA cost is published.16
- Karbon itself is not an RBI-authorised payment aggregator; export receipts run through a third party under separate terms.109
- The forex terms address incorporated users, while marketing pages address freelancers; eligibility for unregistered individuals is not published.91
- Purpose code handling and card payment options are not published.1
Should you choose PayU or Karbon Business?
Choose between PayU and Karbon Business by how your clients pay and your usual invoice size.
Choose PayU if:
- Your foreign clients prefer to pay by international card or PayPal on a checkout page and you want INR settlement.3
- You want a provider listed by the RBI as a cross-border payment aggregator for inward transactions.10
- You already use PayU for domestic payments and want international payments enabled on the same integration.8
Choose Karbon Business if:
- Your clients can pay by US bank transfer to a USD account, or you are paid out by Upwork, Fiverr or Toptal.1
- You want INR in your Indian bank and a FIRA for each receipt.1
For example, say a designer invoices a US client USD 2,000. Because PayU 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.35126
Which other platforms should you consider besides PayU and Karbon Business?
Other platforms to consider besides PayU and Karbon Business are the ones with the lowest estimated cost on a USD 5,000 receipt, listed in that order.131415161718212224262728303132
| Platform | Best for | Estimated cost on USD 5,000 | FIRA | Review |
|---|---|---|---|---|
| Skydo | Local bank transfers from major markets12 | 0.68%131415161718 | Skydo says it issues a free FIRA on every payment received, and that its FIRA and FIRC are accepted for GST filing and by banks.1719 | Skydo review |
| Razorpay | Local transfers from the US, UK and eurozone20 | 1.00 to 1.18%2122 | 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.202322 | Razorpay review |
| Winvesta | Local transfers with a published per-payment fee2425 | 1.24%24262728 | Free 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.2726 | Winvesta review |
| Payoneer | Marketplace payouts such as Amazon or Upwork29 | 1.00 to 4.00%303132 | Free 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.3233 | Payoneer 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]Karbon, Karbon for freelancers (checked 2026-10-28)
- [2]Karbon, PayPal alternative (checked 2026-10-28)
- [3]PayU India, International Payment Gateway (checked 2026-10-28)
- [4]PayU India, Pricing (checked 2026-10-28)
- [5]PayU Docs, FAQs: International Payments and Dynamic Currency Conversion (checked 2026-10-28)
- [6]Karbon, Karbon FX Remittances, home page (checked 2026-10-28)
- [7]PayU Docs, Documents Checklist for Account Activation (checked 2026-10-28)
- [8]PayU Docs, PayU India International Payments (checked 2026-10-28)
- [9]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
- [10]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators (PA-O, PA-P and PA-CB), list dated 16 October 2026 (checked 2026-10-28)
- [11]RBI: Master Direction on Regulation of Payment Aggregators, 15 September 2025
- [12]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
- [13]Skydo FAQ, How much does Skydo charge? (checked 2026-10-28)
- [14]Skydo, Home page (checked 2026-10-28)
- [15]Skydo FAQ, Who will bear the SWIFT charges? (checked 2026-10-28)
- [16]Skydo FAQ, Limitations and restrictions on receiving your foreign remittance via Skydo (checked 2026-10-28)
- [17]Skydo, Receive international payments in India as a freelancer (checked 2026-10-28)
- [18]Skydo, Terms of use (checked 2026-10-28)
- [19]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
- [20]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
- [21]Razorpay, MoneySaver Export Account (international bank transfers) (checked 2026-10-28)
- [22]Razorpay, Pricing (checked 2026-10-28)
- [23]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
- [24]Winvesta FAQs, What are the charges for the global collections account? (checked 2026-10-28)
- [25]Winvesta FAQs, What currencies are available with local accounts? (checked 2026-10-28)
- [26]Winvesta, Multi-currency account (checked 2026-10-28)
- [27]Winvesta FAQ, When will I receive my e-FIRA certificate? (checked 2026-10-28)
- [28]Winvesta FAQ, Can I get priority processing for my withdrawal? (checked 2026-10-28)
- [29]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
- [30]Payoneer India, Payoneer Fees (checked 2026-10-28)
- [31]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
- [32]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
- [33]Payoneer India, Digital FIRC page (checked 2026-10-28)
- [34]DGFT: eBRC services (self-generation of e-BRC from bank inward remittance data)
- [35]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
Frequently asked questions
Which is cheaper for Indian exporters, PayU or Karbon Business?+
There is no cost verdict for a USD 5,000 bank transfer: karbon Business costs about 1.00 to 1.18%; PayU 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 PayU and Karbon Business give a FIRA to Indian exporters?+
PayU: PayU says it provides a FIRC on request through the merchant's Key Account Manager. The cost is not published.5 Karbon Business: Karbon says it provides a FIRA for every transaction, issued by its licensed banking partner, which it does not name. Cost not published.1
Can individual freelancers use PayU and Karbon Business?+
PayU: PayU's account activation checklist covers individuals, sole proprietorships, partnerships, LLPs, private and public limited companies and other entity types. International payments must be enabled separately through a PayU Key Account Manager; PayU does not publish which entity types are eligible for them.78 Karbon Business: Karbon markets the service to freelancers, exporters and small businesses. Its forex terms require the user to be duly incorporated under the laws of India. Karbon does not publish whether an unregistered individual can sign up.19
Are PayU and Karbon Business authorised by the RBI?+
PayU: The RBI lists PayU Payments Private Limited as a Payment Aggregator (online and physical) and as PA-CB I & O, a cross-border payment aggregator facilitating inward and outward transactions, in its list dated 16 October 2026.10 Karbon Business: Karbon does not appear in the RBI's list of authorised payment aggregators. Its forex terms, issued by Interropac Private Limited, say export receipts are processed subject to the connected user terms of a payment partner that the RBI lists as PA-CB I & O. Karbon says it works only with PA-CB licensed players and regulated banks.9106
How fast do PayU and Karbon Business pay out to an Indian bank?+
PayU: Typically T+2 business days for international payments.35 Karbon Business: Karbon says international payments reach India within 24 to 48 hours.1
Do I still need an LUT if I am paid through PayU or Karbon Business?+
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 PayU, Karbon Business or a bank wire.35
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
PayU for Indian service exporters: how it works, costs and limits
How PayU's international payments product works for Indian service exporters: RBI PA-CB status, foreign cards and PayPal, 3% fee, INR settlement, FIRC and limits.
PlatformsKarbon Business for Indian service exporters: how it works, costs and limits
How Karbon Business works for Indian freelancers and exporters receiving foreign payments: virtual USD account, payment partner, FIRA, markup claims, fees and limits.
CompareWhat Are the Best PayU Alternatives for Indian Exporters and Freelancers in 2026?
PayU alternatives for Indian freelancers and agencies, ordered by estimated cost: INR received on $2,000 to $10,000, fees, FX markup, FIRA and RBI status.
CompareWhat Are the Best Karbon Business Alternatives for Indian Exporters and Freelancers in 2026?
Karbon Business alternatives for Indian freelancers and agencies, ordered by estimated cost: INR received on $2,000 to $10,000, fees, FX markup, FIRA and RBI status.