Global payments
Posted on Jan 22, 2025
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IConsidering Stripe to receive international payments and want to know if it’s the right fit for your business? This guide explains all about Stripe payment gateway in India. Let’s understand its features, charges, and pros and cons, and how you can receive international payments easily.
What is Stripe?
Stripe is a global payment gateway that offers a suite of financial products to businesses to accept online and offline payments and manage subscriptions.
You can use Stripe payment for:
Accepting international payments globally via credit/debit cards, wallets (Apple Pay, Google Pay, etc.), bank transfers, and Buy Now Pay Later options.
Handling recurring billing and subscriptions with features like automated invoicing, dunning (retry failed payments), and tax calculation.
Integrating payments into websites, apps, SaaS products, marketplaces, and mobile platforms.
Is Stripe Suitable for Indian Businesses? Let's explore.
While Stripe is a popular payment platform, it might not be suitable for Indian businesses who want to receive international payments. Let’s discuss the pros and cons in detail.
Stripe's Key Strengths:
No hidden charges: Stripe doesn't have any hidden charges, which makes it a powerful feature.
Real-Time Payments: Instant access to payments and advanced reporting for revenue analysis.
Developer-Friendly APIs: Create highly customised payment workflows tailored to your business needs.
Stripe’s Limitations:
Invite-Only Access: Stripe is available only on an invite basis in India. New businesses cannot freely sign up.
Limited Local Support: Customer support and documentation mostly focus on global markets and may not be relevant to Indian businesses.
No Direct UPI or Wallet Integration: Stripe does not natively support popular Indian payment modes like UPI, Paytm, and PhonePe.
Payout Restrictions: Settlement timelines and bank transfer options may take more time as compared to domestic gateways.
Higher Fees Compared to Local Players: Transaction costs can be steeper than Indian processors (like Razorpay or PayU), especially for smaller businesses.
A Reddit user shares their experience on signing up with Stripe in India:
Source: Reddit Post
Detailed Overview of Stripe's Features
Multi-Currency Support
One of Stripe’s standout features is its ability to accept payments in over 135 currencies, making it easier for Indian businesses to serve international clients. Payments are automatically converted to your preferred currency, simplifying operations.
Developer-Friendly APIs
Stripe offers robust APIs that allow extensive customisation. Whether you’re building a custom platform or using tools like Shopify or WooCommerce, integration is seamless and efficient.
Subscription and Recurring Billing
It supports SaaS businesses with powerful management tools for subscription. From free trials to coupons and automated invoices, the tool covers everything.
Fraud Detection and Security
Stripe uses more advanced machine learning algorithms to prevent fraudulent transactions, and it keeps customer data totally PCI DSS compliant.
Reporting and Analytics
Through the Stripe dashboard, one can track payments, refunds, and revenue trends. Businesses can export reports for accounting or strategic planning purposes.
Stripe Charges for Indian Businesses
Transaction Fees
Stripe charges 4.3% processing fees for international payments. These steep pricing features make it unattractive for small businesses to make frequent global transactions.
Currency Conversion Fees
A 2% fee is charged on all currency conversions. This can be a substantial amount for businesses that have a lot of international transactions.
Chargeback Fees
In the event of a chargeback, a business is charged ₹600 per chargeback.
Custom Pricing for High-Volume Businesses
If your business has a high volume of transactions, Stripe offers custom pricing to suit your business needs.
How to Use Stripe in India
Go to the Stripe website and sign up for an account.
Provide your business details and complete the KYC process.
Connect your Indian bank account for payouts.
Integration Options
For Developers: Integrate payment systems into your app or website using Stripe's APIs.
For Non-Developers: Install Stripe plugins on Shopify, Magento, or WordPress.
Managing Payments
Stripe dashboard tracks payments in real-time, sends automatic email reminders to customers for failed payments, and manages recurring subscriptions with ease.
Pros and Cons of Stripe for Indian Businesses
Pros:
Supports up to 50+ multi-currency payments, enabling global transactions.
Transparent pricing with no hidden fees.
Advanced fraud detection with PCI DSS compliance.
Developer-friendly tools for extensive customisation.
Detailed analytics and reporting tools.
Cons:
High currency conversion fees (2%) and processing fees (4.3%)
No support for UPI or local Indian payment methods like RuPay.
Limited options for Indian bank payouts.
It may not be ideal for small businesses due to higher transaction costs.
Is Stripe Safe and Reliable?
Security Features- Stripe holds PCI DSS Level 1, the highest level of security, and keeps all customer data encrypted and secure.
Fraud Detection Tools- The Stripe Radar employs machine learning algorithms that flag suspicious transactions and prevent fraud.
Global Trust-Stripe serves as a powerful payment system for trusted brands like Amazon, Shopify, and Uber. It's thus a good business choice.
Who Should Use Stripe in India?
Strip is Ideal for:
SaaS companies with recurring billing requirements.
E-commerce companies are targeting international customers.
Individuals and agencies doing work for clients who are overseas.
Not for the following:
Those that make business based on internal payments since UPI and RuPay are not supported.
The micro merchants whose transaction volume is small, because, for them, the fee they have to incur might be higher than their alternatives.
Alternative to Stripe Payment Gateway in India
Stripe gives you invoicing, billing, and global payment tools, but its invite-only access in India and higher transaction fees make it less practical for local entrepreneurs and freelancers. What Indian businesses really need is a customised solution that makes receiving international payments simple, low-cost, and compliant.
This is where Infinity fits in.
Why Infinity works better for Indian freelancers and businesses:
Flat 0.5% transaction fee: Infinity charges a flat 0.5% transaction fee with no hidden deductions, so you always know exactly what you’re paying.
0% FX markup: Infinity converts USD to INR or any other currency to INR at live exchange rates.
Fast settlements: You can receive international payments in your bank account within 24 hours.
Automatic FIRA generation: You will automatically get FIRA (e-FIRC) document for each transaction. This makes compliance easier.
Multi-currency support: You can receive payments in USD, EUR, GBP, and more.
All-in-one dashboard: Infinity helps you manage invoices, payments, and compliance from one place.
Quick Comparison: Stripe vs. Infinity for Indian Businesses
Feature | Stripe (India, invite-only) | Infinity (Built-for-India) |
Sign-up | Invite-only access | Open to freelancers, startups, exporters |
Transaction Fee | High (varies) | Flat 0.5% (all-inclusive) |
FX Conversion | Markup applied | Live FX rates, 0% markup |
Settlement Time | Varies (can be slow) | Typically within 24 hours |
FIRA / e-FIRC | Not issued | Auto-generated with every withdrawal |
Compliance & Security | Standard | RBI-approved, AD-I bank-backed, fully compliant |
Frequently Asked Questions About Stripe in India
What are Stripe’s fees for Indian businesses?
Stripe charges 4.3% per transaction for international payments and a 2% currency conversion fee.
Can I use Stripe for UPI or RuPay payments in India?
No, Stripe doesn't support UPI or RuPay.
Does Stripe support payouts to Indian bank accounts?
Yes, Stripe allows payouts to Indian bank accounts once you complete the KYC process.
Why is Stripe good for SaaS companies?
Stripe has robust tools to manage subscriptions, recurring payments, and advanced analytics.
Final Thoughts
Stripe is a secure payment gateway, which enables Indian businesses to scale their business globally. It supports various currencies, which is developer-friendly, and very secure. These features make Stripe ideal for the SaaS industry, freelancing, and online e-commerce, especially for services targeting international customers. However, its higher charges and lack of UPI/RuPay make it less preferred for businesses concentrated on domestic transactions.
If you are looking for an affordable and transparent payment solution to receive payments in India, try Infinity. The flat transaction fee, quick processing, and automatic compliance makes it a perfect solution for Indian freelancers and exporters.
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