Payments

Wise, PayPal or Payoneer: What RBI's Export Rules Mean for Getting Paid by a Malaysian Client

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

Bank Negara Malaysia lets a Malaysian resident pay a non-resident in foreign currency, such as USD.¹ PayPal lists MYR in its India fee table.¹⁹ Wise and Payoneer list no MYR local account details.²⁰²¹ The FEMA 2026 Regulations require an EDF and realisation within nine months.²³ The India-Malaysia DTAA caps fees for technical services at 10%.⁴

Applies to	Rules involved	Platforms compared	Last verified
Indian freelancers and companies invoicing Malaysian clients⁵	FEMA 2026 Regulations, IGST sections 2(6) and 16, India-Malaysia DTAA Article 13²⁴⁶	Skydo, Razorpay, Karbon Business, Payoneer, PayPal, Wise¹⁹²²²³²⁴²⁵²⁶	31 October 2026⁷

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.

A Malaysian client hiring an Indian developer, designer or consultant usually asks one practical question: which currency and which route? Malaysia's foreign exchange rules let the client pay in USD, and only some Indian-facing providers handle Malaysian ringgit (MYR).¹¹⁹²⁰ This page compares Wise, PayPal and Payoneer with the lowest-cost USD providers on published fees and sets out the RBI export rules behind each payment. For the full corridor guide, see how to receive money from Malaysia to India.

How do Wise, PayPal and Payoneer compare for getting paid by a Malaysian client?

Wise, PayPal and Payoneer differ first on currency: PayPal lists MYR, while Wise and Payoneer list no MYR receiving details and suit a client paying USD.¹⁹²⁰²¹ The table orders providers by estimated cost on a USD 5,000 receipt from published fees, cheapest first, with Wise last because it publishes no INR conversion percentage.¹⁹²²²³²⁴²⁵²⁶

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Skydo	Local bank transfers from major markets	USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to 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)	Within 24 hours (product page); T+1 to T+3 business days (terms)	Free FIRA on every payment	Authorised PA-CB I & O (8 January 2026)	⁷²²³⁰³¹³⁸
Razorpay	Local transfers from the US, UK and eurozone	1% plus GST per bank transfer; flat ₹1,000 on transactions below ₹1,00,000	Razorpay says 0% markup on bank transfers	T+1 for bank transfers	Foreign Inward Remittance Statement (FIRS) within 24 hours of settlement	Authorised PA-CB I & O (19 December 2023)	⁷²³³²
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 a banking partner	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB	⁷²⁴³³³⁴
Payoneer	Marketplace payouts such as Amazon or Upwork	Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); USD 29.95 annual fee if you receive under USD 6,000 in 12 months	1% to 4% when converted to INR	Within 24 hours (multi-currency account page); within 48 hours (pricing page)	Free digital FIRA for each payment from a partner AD bank	In-principle PA-CB authorisation (22 January 2026); RBI lists it as unable to operate as a PA-CB until authorised	¹¹²¹²⁵²⁸²⁹
PayPal	Clients paying by card or PayPal balance	4.40% plus a fixed fee per payment (USD 0.30, EUR 0.35, AUD 0.30, CAD 0.30)	PayPal lists 3.0% and 4.00% above its base rate	Up to 5 business days	Free weekly digital FIRA from February 2026	In-principle PA-CB authorisation; not on RBI's authorised list	⁷¹¹¹⁹²⁷³⁵³⁶
Wise	Bank transfers to local account details	Domestic (non-Swift) receipts free (business fee table); 2 USD equivalent per transfer to the INR account (help article); USD 6.11 per USD wire or Swift payment; 18% GST on Wise fees	Mid-market rate plus a fee that depends on the currency; no INR percentage published	INR reaches the bank within 1 to 2 days of Wise receiving the payment	e-FIRC for each transfer within 3 working days	Authorised PA-CB-I (12 March 2026)	⁷²⁰²⁶³⁷

USD from Malaysia: Bank Negara Malaysia says a resident is free to make foreign currency payments to a non-resident for any purpose, apart from certain derivative transactions.¹
MYR through PayPal: PayPal's fixed fee for an MYR payment is MYR 2.00.¹⁹
Local rails in Malaysia: Malaysian account-to-account payments run on PayNet's Interbank GIRO and DuitNow, with RENTAS for interbank settlement.¹²¹³

Which RBI rule governs money from Malaysia?

Money from a Malaysian client for services is governed by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), in force from 1 October 2026.²

Rule	Best for (who it applies to)	Plain meaning	Source
Regulations 3 and 4: EDF	Every service exporter	EDF to the AD bank within 30 days from the end of the invoice month, or by the payment date for non-software services	²
Regulation 5: realisation	Exporters with slow payers	Nine months from invoice; twelve months for rupee invoices	³
Regulation 7: set-off	Exporters who also buy from the client	AD bank may allow set-off	²
Paragraph 11(d): PA-CB cap	Exporters paid through a PA-CB	₹25 lakh per transaction	¹⁴
Software exports	Developers and SaaS firms	EDF covers software from 1 October 2026; SOFTEX circulars superseded	¹⁵

What does each option charge?

Each option charges differently on a payment from Malaysia, and the currency the client pays in changes which charges apply.¹⁹²¹²²²³²⁴²⁵³⁷

Platform	Best for	Charge on the payment	Conversion to INR	Source
Skydo	Local bank transfers from major markets	USD 19 or 29 plus GST by band	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)	²²³⁰³¹³⁸
Razorpay	Local transfers from the US, UK and eurozone	1% plus GST; SWIFT account available	0% markup on bank transfers, per Razorpay	²³³²
Karbon Business	US bank transfers and marketplace payouts	1% transaction fee	0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)	²⁴³³
Payoneer	Marketplace payouts such as Amazon or Upwork	Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page)	1% to 4%	²¹²⁵²⁸
PayPal	Clients paying by card or PayPal balance	4.40% plus MYR 2.00 or USD 0.30	3.0% or 4.00% above base rate	¹⁹³⁵
Wise	Bank transfers to local account details	Free for domestic USD (business fee table); 2 USD equivalent per transfer to the INR account (help article); USD 6.11 by wire or Swift	Currency-dependent fee	²⁰²⁶³⁷

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

For a Malaysian client paying in USD, the cheapest option on published fees depends on invoice size.¹²²²³ The table below works out the INR you receive 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%
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, Skydo's USD 19 plus GST is about 4.5% of a $500 invoice and 1.12% of a $2,000 invoice, and its USD 29 plus GST is 0.68% of $5,000.²² PayPal's 4.40% plus a fixed fee is charged before its conversion fee at every size.¹⁹ MYR pricing on the site covers PayPal only, in the MYR receiving guide.

What documents, GST and withholding tax apply?

A payment from a Malaysian client needs proof of receipt, an EDF and, for registered exporters, an LUT; GST is usually zero-rated, and Malaysian withholding reaches only work performed in Malaysia.²⁶⁸⁹

Item	Best for	What it means	Source
FIRA or e-FIRC	Every exporter	Skydo, Payoneer, PayPal and Wise each issue one	²⁰²⁹³¹³⁶
e-BRC	Exporters claiming GST refunds	Self-certified on DGFT from bank IRM data	¹⁶
LUT	GST-registered exporters	Invoice without IGST for the financial year	⁹
LHDN withholding	Exporters who work on site in Malaysia	10% or treaty rate on the Malaysian service portion	⁸
DTAA Article 13	Managerial, technical or consultancy services	Fees for technical services capped at 10%	⁴
Form 44	Exporters with tax withheld abroad	Foreign tax credit from tax year 2026-27	¹⁷

Contractors on site: Contract payments to non-resident contractors for services performed in Malaysia face 10% plus 3% on the service portion, according to LHDN.⁸
Treaty dates: The India-Malaysia DTAA was signed on 9 May 2012 and given effect in India from 1 April 2013.⁴

Read foreign withholding tax if a client deducts tax.

What changes in 2026 for exporters paid by a Malaysian client?

Exporters paid by Malaysian clients face the 2026 Regulations, the EDF for services, nine-month realisation and the Income-tax Act, 2025 in 2026.²³¹⁸

2026 Regulations: In force from 1 October 2026.²
EDF: Every service exporter files one from 1 October 2026.²
Realisation: Nine months from the invoice date.³
Income tax: The Income-tax Act, 2025 applies from 1 April 2026.¹⁸
Wise: Authorised as a PA-CB for inward payments on 12 March 2026.⁷

Confirm your own position with a chartered accountant.

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

How can I receive payment from my Malaysian client in India?+

A Malaysian client can pay you by international wire to your Indian bank, by USD transfer to account details from a provider, or through PayPal, which lists MYR.¹²¹⁹ Bank Negara Malaysia lets a resident pay a non-resident in foreign currency, so invoicing in USD is permitted on the Malaysian side.¹

Can I receive Malaysian ringgit through Wise in India?+

Wise's list of 24 currencies that Indian businesses can receive, local and international, does not include MYR.²⁰ A Malaysian client can instead pay USD to Wise's USD account details, which Wise converts to INR for the verified Indian bank account.¹²⁰

Does PayPal accept MYR payments for Indian freelancers?+

PayPal's India fee page includes MYR in its fixed-fee table, with a fixed fee of MYR 2.00 on top of the 4.40% receiving fee for international commercial transactions.¹⁹ PayPal transfers the balance to the linked Indian bank account automatically every day.²⁷

Will my Malaysian client deduct withholding tax?+

Malaysia's Inland Revenue Board says withholding on payments to non-residents for certain services covers only the amount attributable to services performed in Malaysia, at 10% or the treaty rate.⁸ Work done entirely from India for a Malaysian client falls outside that portion.

What RBI rules apply to payments from a Malaysian client?+

The FEMA 2026 Regulations apply from 1 October 2026: file an EDF with your AD bank within 30 days from the end of the invoice month, and collect payment within nine months of the invoice, or twelve months for rupee invoices.²³

Do I charge GST on an invoice to a Malaysian company?+

An invoice to a Malaysian company is usually a zero-rated export of services when all five conditions of IGST section 2(6) are met.⁵⁶ GST-registered exporters file an LUT in FORM GST RFD-11 each financial year to invoice without IGST.⁹ The place of supply for most remote services is the client's location.¹⁰

Is Payoneer an option for a Malaysian client paying in USD?+

Payoneer gives Indian users USD local receiving account details and a USD SWIFT receiving account, and says receiving USD is free for customers from India on its multi-currency page, and its India pricing page lists a fixed fee or 1% for non-local currencies.²¹²⁸²⁵ Converting to INR costs 1% to 4%, and a free digital FIRA is issued for each payment.²⁵²⁹

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

Countries