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Are banks or fintech platforms better for international payments in India? For most freelancers, exporters and startup founders, fintech platforms are better. They charge lower and clearer fees, settle faster and give you the right documents without chasing. Banks still make sense for some cases, and this guide shows you exactly when.
If you have ever wondered why your bank credits less than the invoice amount, you are not alone. Below, we break down how banks and fintech platforms handle international payments, what each one costs, how fast each one is, and which one fits your work. We also show how Infinity helps you receive international payments, so you can see a fintech platform in action.
TL;DR
Are banks or fintech platforms better for international payments in India? - Fintech platforms are better for most freelancers, exporters and startup founders. They offer lower fees, faster settlement and automatic documents. Banks are better only for specific cases, such as when you want everything under one roof.
What is the difference between a bank and a fintech platform? - A bank is a full-service financial institution. A fintech platform is a technology-led company that focuses on specific services, such as receiving international payments, and does it faster and with more clarity.
How do the fees differ? - Banks often charge in layers: a transfer fee, intermediary charges, a currency conversion markup and GST. A fintech platform like Infinity charges one all-inclusive fee of 0.5%, with no separate FX markup or GST.
How fast is settlement? - Banks usually take a few working days. Infinity settles in 24 hours.
Do fintech platforms give FIRA or FIRC? - Banks issue FIRC on request. Infinity auto-generates a FIRA for free.
Are fintech platforms safe and regulated? - Yes, when they are authorised. Infinity is AD-1 certified and RBI-regulated.
Who should use what? - Freelancers, exporters and founders who receive payments regularly do better on a fintech platform. Banks still work for occasional transfers or when you prefer one single account for everything.
What Is the Difference Between a Bank and a Fintech Platform?
A bank is a licensed institution that offers a full range of services such as savings accounts, loans, cards and international transfers. A fintech platform is a technology-led company that focuses on one set of services and builds it around speed, clarity and ease of use.
When it comes to international payments, this difference matters a lot. A bank handles foreign payments as one of many services, so the process is built around its older systems. A fintech platform built for international payments designs the whole experience around one goal: getting you paid from abroad quickly and clearly.
One common doubt is whether fintech platforms are regulated in India. The answer is yes, when they hold the right authorisation. In India, non-bank companies that handle cross-border payments need approval from the RBI. A platform with AD-1 certification is authorised to deal in foreign exchange for these payments. Infinity is AD-1 certified and RBI-regulated, so you receive money under the same regulatory framework that applies to cross-border payments in India.
How Do Banks Handle International Payments?
Banks handle international payments through the SWIFT network. Your client's bank sends a payment message across this network, often through one or more intermediary banks, until the money reaches your bank, which then converts it to rupees and credits your account.
This route works, and it has worked for decades. But every step on the way can add a cost or a delay.
Read more: Best SWIFT Alternatives in India for 2026
1.What charges do banks apply on international payments?
Banks usually charge in layers. This is why the final amount often looks different from what you expected.
Sender bank fee: Your client's bank may charge a fee to send the money.
Intermediary or correspondent bank charges: The banks in between can deduct a fee before the money reaches you.
Inward remittance fee: Your bank may charge a fee to credit the money.
Currency conversion markup: The bank converts the foreign currency at its own rate, which is usually a little lower than the mid-market rate. This hidden difference is called the FX markup.
GST: GST is charged on the bank's service charges.
The tricky part is that you often do not see the full picture until the money arrives. Intermediary charges, in particular, are hard to predict, since they depend on the route the payment takes.
2.How long does a bank take to receive an international payment?
A bank typically takes a few working days to credit an international payment, often between two and five. It can take longer when the payment passes through more intermediary banks or when the bank asks for extra details such as an invoice or purpose code.
3.What documents do banks need for international payments?
Your bank may ask for the invoice, the purpose of the payment and details of the sender. Banks issue a Foreign Inward Remittance Certificate (FIRC) on request, which is proof that the money came from abroad. If you want to understand the difference between the two documents, read our guide on FIRA vs FIRC.
4.What are the strengths of banks?
Trust and familiarity: You already have an account, and many people feel comfortable with their bank.
One place for everything: Savings, loans, cards and payments all sit with one institution.
Branch and relationship support: You can walk in and speak to someone.
Good for large or occasional transfers: If you receive money rarely, a bank can be enough.
5.What are the limitations of banks?
Layered and unpredictable charges: It is hard to know the exact amount you will receive.
Slower settlement: Payments can take several working days.
Hidden FX markup: The exchange rate often includes a margin that is not shown as a fee.
Limited tracking: It is difficult to see where your payment is while it is in transit.
Paperwork for each payment: You may need to share documents again and again.
How Do Fintech Platforms Handle International Payments?
A fintech payment platform is a technology-led company that is built to move money across borders. It does not offer the full range of a bank, such as loans or branches. Instead, you sign up online, get your account details and manage your payments from one dashboard or app.
Infinity is also a fintech payment platform. It is AD-1 certified and RBI-regulated, and it is built for Indian freelancers, exporters and startup founders who receive international payments.
Here is how it usually works. You sign up and complete KYC. The platform gives you account details in currencies such as USD, GBP or EUR. You share these details with your client. Your client sends money to those details, and the platform credits you after conversion, with the documents ready.
Because the platform is built for this one job, the experience is designed around clarity. You can see the fees upfront and track the payment.
Read more: Infinity vs ICICI Bank: Which Is Better for International Payments?
1.What are the strengths of fintech platforms?
Transparent pricing: The fee is clear before you receive the payment.
Faster settlement: Money often reaches you in a day, not several days.
Digital onboarding: Signing up and verification happen online.
Tracking and notifications: You can see the status of your payment.
Automatic documents: The platform generates the paperwork for you.
2.What are the limitations of fintech platforms?
It is fair to look at both sides. A fintech platform is not a full bank, so you will still need an Indian bank account to receive rupees. Features, limits and pricing differ from one platform to another, so it is worth checking the details before you choose. And you should always confirm that the platform is authorised by the RBI. Look for AD-1 certification.
Banks vs Fintech: Side-by-Side Comparison
Banks charge in layers and take a few working days, while fintech platforms like Infinity usually charge one clear fee and settle faster. The table below shows the main differences at a glance.
Factor | Traditional Bank | Fintech (General) | Infinity |
Fees | Multiple layers: transfer fee, intermediary charges, inward fee | Usually one clear fee, varies by platform | 0.5% all-inclusive |
FX rate | Bank's own rate, often with a markup | Varies by platform | No separate FX markup |
GST and hidden charges | GST on service charges, and intermediary deductions are possible | Varies by platform | No additional GST |
Settlement time | A few working days | Often faster | 24 hours |
Documents | FIRC on request | Varies by platform | Free FIRA, auto-generated |
Onboarding | Existing account or branch visit | Online | Sign up in about 2 minutes, KYC the same day |
Support | Branch or call centre | Chat or email, varies | Dedicated account manager |
Currencies | Depends on the bank | Varies by platform | 50+ currencies, 160+ countries |
Best for | Occasional transfers, one-stop banking | Regular international payments | Freelancers, exporters and startup founders |
If you want a closer look at one comparison, see our breakdown of Infinity vs bank wire transfers.
Which Is Better for Freelancers, Exporters and Startup Founders?
For all three, a fintech platform is usually the better option for regular international payments, because you lose less money in fees and you get paid sooner. The right choice still depends on how you work.
Which is better for freelancers?
Fintech platforms like Infinity are better for freelancers. You receive payments from clients in different countries, often in different currencies, and the amounts add up. Lower fees and faster settlement mean more money in your pocket and faster cash flow. A platform that gives you local bank details also makes it easy for your clients to pay you without confusion.
A bank can still work if you receive a payment only once or twice a year.
Read more: Best International Payment Gateways for Indian Freelancers
Which is better for exporters?
Fintech platforms are better for exporters who receive payments regularly from overseas buyers. You deal with repeat transactions, so clear fees and quick settlement help you plan your cash flow. Automatic documents also save time, since you need proof of every inward payment for your records.
A bank may still be useful when you already have a trade finance or credit relationship with it and want to keep your payments in the same place.
Read more: Best International Payment Gateway Providers for Exporters in India
Which is better for startup founders?
Fintech platforms are better for founders who receive money from international customers or clients. Founders move fast, and waiting several days for a payment affects everything from payroll to vendor bills. A platform that lets you hold a USD balance and convert whenever you choose also gives you control over when to convert.
Read more: How to Receive International Payments in India as a Startup Founder
When is a bank still the right choice?
A bank is the right choice when:
You receive international payments very rarely.
You want all your financial services in one place.
You already use your bank for trade finance, loans or credit, and prefer to keep things together.
You prefer in-person support at a branch.
Many people also use both. You can keep your regular bank account for everyday banking and use a fintech platform for international payments.
How Does Infinity Help Receive International Payments?
Infinity helps Indian freelancers, exporters and startup founders receive international payments at one clear fee, with fast settlement and automatic documents. Infinity is AD-1 certified and RBI-regulated, and makes receiving international payments seamless.
Here is how Infinity compares with the bank route we saw earlier:
One all-inclusive fee: Infinity charges 0.5% all-inclusive. There is no separate FX markup and no additional GST, so you can work out what you will receive.
24-hour settlement: You do not wait several days for your money.
Free FIRA: Infinity auto-generates your FIRA at no extra cost, so your paperwork is ready.
Bank details in multiple currencies: You get account details that your clients can pay into like a local transfer.
50+ currencies and 160+ countries: You can receive money from clients across the world.
USD balance: You can hold your money in a USD balance and convert whenever you choose.
Dedicated account manager: You get a personal point of contact to help you.
Mobile app: You can manage your payments from the Infinity app.
Getting started is simple. You sign up in about two minutes, finish verification and KYC on the same day, receive your bank details in multiple currencies, and start receiving payments.
Infinity also has a purpose code finder tool, which helps you pick the correct purpose code, a detail that international payments need.
Common Myths About Banks vs Fintech
A few beliefs stop people from trying fintech platforms. Here is a list of myths and realities related to it.
Myth | Reality |
Fintech platforms are not safe. | Authorised platforms operate under RBI rules. Look for AD-1 certification, as Infinity has. |
Banks are always cheaper. | A bank's fee can look small, but intermediary charges, the FX markup and GST add up. Compare the final amount you receive, not just the headline fee. |
Only banks give valid documents. | Authorised platforms issue proof of inward remittance. Infinity auto-generates a free FIRA. |
A fintech platform replaces my bank account. | It does not. You still need an Indian bank account to receive rupees. The platform simply makes the international part easier. |
Switching is complicated. | Signing up takes about two minutes, and KYC is completed the same day. |
How to Switch From Bank Transfers to Infinity
You can switch from bank transfers to Infinity in a few simple steps, and you do not need to close your bank account.
Sign up on Infinity. Creating your account takes about two minutes.
Complete KYC. Verification is completed the same day.
Get your bank details in multiple currencies. Infinity gives you account details for the currencies your clients pay in.
Share these details with your clients. Send them to your clients in place of your bank's SWIFT details.
Receive your international payments within 1 business day.
Receive your compliance documents hassle-free. Your FIRA is generated automatically after every transaction.
Hold in foreign currency or convert. You can keep your money in the foreign currency that you receive or convert whenever you choose at your preferred FX rates.
FAQs
Banks vs fintech for international payments in India: which is better?
For most freelancers, exporters and startup founders, fintech platforms are better. They usually charge lower and clearer fees, settle faster and generate documents automatically. Banks are a good fit for occasional transfers or when you want all your services in one place.
Is fintech safe for receiving international payments in India?
Yes, when the platform is authorised. In India, platforms that handle cross-border payments need RBI authorisation. Infinity is AD-1 certified and RBI-regulated.
Are fintech platforms regulated by RBI?
Yes, authorised fintech platforms that handle foreign exchange for cross-border payments are regulated by the RBI. You should check for AD-1 certification before you choose one.
Do fintech platforms provide FIRA or FIRC?
Banks issue a FIRC on request. Fintech platforms usually issue a FIRA. Infinity auto-generates a FIRA for free with your payments.
Why do banks charge more for international payments?
Banks often charge more because the payment passes through several steps, and each step can add a cost. These include the sender bank fee, intermediary bank charges, the inward remittance fee, the FX markup and GST. Together, they reduce the amount you finally receive.
Can I use both a bank and a fintech platform?
Yes. You can keep your bank account for everyday banking and use a fintech platform like Infinity to receive international payments. You will still need your Indian bank account to receive rupees.
How long does a bank take to receive an international payment?
A bank typically takes a few working days, often two to five, to credit an international payment. It can take longer if the payment passes through more intermediary banks or if extra details are needed. Infinity settles payments in 24 hours.
