Payments

Stripe, Razorpay or a Merchant of Record: What PA-CB (Formerly OPGSP) and GST Rules Mean for SaaS Companies Getting Paid

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

RBI's Payment Aggregator Master Direction of 15 September 2025 repealed the OPGSP circulars, with one exception for pending PA-CB applicants.⁵ Razorpay is an authorised PA-CB, while Stripe is authorised as an online aggregator and offers cross-border services by invite.⁶³² Paddle and Lemon Squeezy publish 5% + 50¢ as merchants of record.³⁹⁴⁰ SaaS exports are zero-rated for GST.¹⁴

Applies to	Rules involved	Platforms compared	Last verified
Indian SaaS companies selling subscriptions to customers outside India¹²	RBI PA Master Direction, 15 September 2025; IGST Act sections 2(6), 13 and 16; FEMA Export and Import Regulations, 2026¹⁵¹²¹³¹⁴	Razorpay, Karbon Business, Skydo, Dodo Payments, Lemon Squeezy, Paddle, Stripe¹⁸²²²⁵²⁸³⁵³⁹⁴⁰	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.

An Indian SaaS company selling a $49 monthly plan to buyers in forty countries has to choose between a payment gateway, where it is the seller, and a merchant of record (MoR), which resells the product as the legal seller.³⁷³⁹ Older guides frame this choice around "OPGSP" rules, but RBI's Master Direction on Regulation of Payment Aggregator of 15 September 2025 repealed the OPGSP circulars, with one exception for existing PA-CBs whose applications were pending, so this page uses the current Payment Aggregator Cross Border (PA-CB) framework.⁵⁸

The detail on the old and new regimes is in PA-CB vs OPGSP, and the full persona guide is international payments for SaaS companies. Confirm your set-up with a chartered accountant (CA).

How do Stripe, Razorpay and merchants of record compare for SaaS companies?

Stripe and Razorpay process card payments as gateways where the SaaS company is the seller, while Paddle, Lemon Squeezy and Dodo Payments act as merchants of record that sell to the buyer and pay the company.¹⁸²⁸³⁷³⁹⁴⁰ Razorpay, Karbon Business and Skydo are the three lowest-cost providers for a $2,000 USD receipt on published fees.¹⁷²³²⁵

The table is sorted by estimated cost on a $2,000 USD receipt, cheapest first; providers without a full published INR cost follow, A to Z.¹⁷²⁵

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Razorpay	Local transfers from the US, UK and eurozone	MoneySaver bank transfer 1%, flat ₹1,000 below ₹1,00,000; GST applies	0% on MoneySaver transfers	T+1 for push bank transfers	FIRS emailed within 24 hours of settlement	Authorised PA-CB, inward and outward	⁶¹⁷¹⁹
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 partner bank	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB	⁶²²²³²⁴
Skydo	Local bank transfers from major markets	USD 19 + GST up to USD 2,000; USD 29 + GST to USD 10,000; 0.3% + GST above	0% 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 payment	Authorised PA-CB, inward and outward, 8 January 2026	⁶²⁵²⁶²⁷⁴¹
Dodo Payments	Software and digital product sellers	4% + 40c for US cards and wallets; +1.5% for methods outside the US; +0.5% for subscriptions	0% to the business on Adaptive Currency; standard rates on non-USD settlements, not published	USD, GBP or EUR wallet payouts, bi-monthly by default; INR payouts discontinued	FIRA on request, per its blog	Not on RBI's payment aggregator list; acts as merchant of record	⁶³⁵³⁶³⁷³⁸
Lemon Squeezy	Not assessed	5% + 50¢ per transaction; small additional fees outside the US	Not published	Bank wire or PayPal, twice a month	Not published on the pricing page	Not published; describes itself as merchant of record	⁴⁰
Paddle	Not assessed	5% + 50¢ per checkout transaction on pay-as-you-go	Not published	Not published on the pricing page	Not published on the pricing page	Not published; handles tax and chargebacks as merchant of record	³⁹
Stripe	Card checkout and subscriptions	3% for Visa or Mastercard issued abroad; 3.5% for American Express; 4.3% for non-INR presentment	Additional 2% if conversion is required	Daily payouts include international card payments made five business days earlier	Standard Chartered emails a payment advice; request the FIRC from your own bank	Authorised PA-Online, not PA-CB; cross-border services invite-only	⁶²⁸³⁰³¹³²³⁴

Razorpay's card route costs up to 3% plus 18% GST, separate from the MoneySaver bank transfer fee in the table.¹⁸ A SaaS company with many small card subscribers abroad faces sales tax and VAT questions that an MoR takes over, while one with a few enterprise customers paying by transfer usually does not need one.³⁹⁴⁰

Which RBI and GST rules apply to SaaS companies getting paid from abroad?

SaaS companies getting paid from abroad follow the RBI Payment Aggregator Master Direction when a gateway settles the money, the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) for realisation and the EDF, and the IGST Act for GST.¹⁵¹²

Rule	Best for (who it applies to)	Plain meaning	Source
PA Master Direction, paragraph 19	SaaS companies choosing a gateway	OPGSP circulars repealed, except existing PA-CBs that applied by 30 April 2024 and await a decision	⁵
PA Master Direction, paragraph 11(d)	Companies paid through a PA-CB	₹25 lakh maximum per transaction	⁵
PA Master Direction, paragraph 11(h)	Companies closing export entries	The PA-CB gives the AD bank the documents or information the exporter needs	⁵
IGST Act section 13	SaaS sold online to customers abroad	Place of supply rules for cross-border services, with the recipient's location as the default	¹³
IGST Act sections 2(6) and 16	SaaS companies selling directly or to an MoR	Exports meeting all five conditions are zero-rated; an LUT allows invoices without IGST	¹²¹⁴¹⁵
2026 Regulations, regulations 3, 4 and 5	Every SaaS exporter	EDF within 30 days from the end of the invoice month; nine-month realisation	¹²

SaaS companies issuing more than a few hundred invoices a month should read EDF for service exporters, because one EDF can cover a month's invoices.¹

Which purpose code applies to a SaaS company?

A SaaS company usually reports receipts under P0802 or P0807, both software codes in RBI's list.⁹¹⁰ Whether P0802 or P0807 is preferred for off-site software exports now that SOFTEX has been superseded is not settled, and Razorpay's MoneySaver list includes P0802 but not P0807.³²¹

Code	Best for (transaction type)	Official RBI description	Source
P0802	Subscriptions, implementation and customisation	Software consultancy/implementation (other than those covered in SOFTEX form)	⁹¹⁰
P0807	Software delivered online from India	Off-site Software Exports	⁹¹⁰
P0803	Data processing or hosted data services	Data base, data processing charges	⁹¹⁰
P0902	Licence fees for software or other intellectual property	Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc.	⁹¹⁰

Stripe offers one purpose code per account from a fixed dropdown, so check that your code is on its list before onboarding.²⁹ See purpose code for SaaS.

Which option is cheapest for a SaaS company at $500, $2,000 and $5,000?

On published fees, bank transfer routes cost a SaaS company less than card routes or merchants of record at $2,000 and $5,000, because MoR and card fees are percentages that do not fall with invoice size.¹⁷²⁵²⁸³⁹ The table below calculates rupees received 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
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%

Not estimated because pricing for USD is not fully published: Dodo Payments, Stripe.

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, Paddle's 5% + 50¢ is 5.1% on a $500 sale and 5.025% on a $2,000 sale.³⁹ A Visa card issued abroad and charged in USD costs 4.3% on Stripe, plus 2% if currency conversion is required.²⁸³⁴ Dodo Payments charges 4% + 40c for US cards, plus 1.5% for cards issued outside the US and 0.5% for subscriptions.³⁵

The MoR fee buys tax handling and chargeback management that a gateway does not provide, so compare it with what those would cost you.³⁷³⁹

What documents does a SaaS company get from each option?

A SaaS company gets a different inward remittance document from each option: Razorpay sends a FIRS, Stripe's bank emails a payment advice, and merchants of record publish little on Indian documents.¹⁹³¹³⁹⁴⁰

Option	Best for	Document published	Source
Razorpay	Bank transfers and cards	FIRS within 24 hours of settlement for bank transfers; FIRC or eFIRC for cards	¹⁸¹⁹
Stripe	Card subscriptions	Standard Chartered payment advice; FIRC from your own bank	³¹
Skydo	Local bank transfers	Free FIRA on every payment	²⁷
Dodo Payments	Digital product sellers	FIRA on request, per its blog	³⁸
Paddle and Lemon Squeezy	Not assessed	Not published on the pricing pages	³⁹⁴⁰

Whatever the route, the SaaS company files an EDF and generates an e-BRC on the DGFT portal from its bank's inward remittance message.¹¹¹

What changes in 2026 for SaaS companies?

For SaaS companies, 2026 replaced SOFTEX with the EDF for software exports from 1 October 2026 and brought several gateways under RBI's PA-CB authorisation.¹³⁶

SOFTEX: RBI Circular No. 20 of 16 January 2026 supersedes the SOFTEX circulars from 1 October 2026.³
EDF: Every exporter of services files an EDF from 1 October 2026.¹⁴
Realisation: Nine months from invoice, twelve months for rupee invoices.²
Stripe: Stripe says it withdrew its PA-CB application on RBI guidance and serves Indian cross-border businesses by invite.⁷³²
Income tax: The Income-tax Act, 2025 applies from 1 April 2026.¹⁶

Ask your bank how invoices raised before 1 October 2026 and still unpaid are tracked.¹

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

Is OPGSP still valid for SaaS payments in India in 2026?+

The OPGSP framework is largely gone in 2026. RBI's Master Direction on Regulation of Payment Aggregator of 15 September 2025 repealed the OPGSP circulars, except for an existing PA-CB that applied on or before 30 April 2024 and still awaits RBI's decision. SaaS companies should check the provider's status on RBI's lists.⁵⁶

Can an Indian SaaS startup sign up for Stripe in 2026?+

Stripe says Indian businesses cannot sign up through its website and must request an invite. International payments are open to sole proprietorships, LLPs and companies, while individuals can use Stripe India only for domestic payments. Stripe says it continues cross-border services for Indian businesses on an invite-only basis.²⁹³²

Does a SaaS company charge GST on subscriptions sold through Paddle?+

With a merchant of record, the MoR is the legal seller to the end customer and handles the customer-side tax. The Indian SaaS company supplies the MoR, so its own invoice goes to the MoR entity, and whether that is an export depends on the section 2(6) IGST Act conditions.¹²³⁷³⁹

Does Razorpay support international card payments for SaaS subscriptions?+

Razorpay accepts international cards including Visa, Mastercard and American Express at up to 3% per successful transaction plus 18% GST. Razorpay says international card payments need a website with terms, privacy, refund and shipping policy pages, and the business must fall under one of the export purpose codes it lists.¹⁸¹⁹²⁰

What is the RBI limit per transaction for SaaS payments through a gateway?+

RBI caps each cross-border payment aggregator transaction at ₹25 lakh under paragraph 11(d) of the Payment Aggregator Master Direction. Stripe publishes the same ₹25 lakh limit per export transaction for sole proprietorships, LLPs and companies. Large annual enterprise contracts above that usually go by bank wire.⁵³³

Which purpose code does a SaaS company choose on Stripe or Razorpay?+

Stripe lets an Indian account choose one purpose code from a fixed dropdown list, and Razorpay applies one selected code to all international transactions. Razorpay's MoneySaver list includes P0802 but not P0807, so SaaS companies often report under P0802, software consultancy and implementation.⁹²¹²⁹

Do merchants of record give Indian SaaS sellers a FIRA?+

Dodo Payments says in a blog post that a FIRA is available on request, though its documentation does not mention one. Paddle and Lemon Squeezy do not mention a FIRA on their pricing pages. Ask any merchant of record how payouts reach India and who issues the inward remittance document.³⁸³⁹⁴⁰

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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