Global payments
Posted on Nov 19, 2025
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Receiving international payments in India as a freelancer should be simple, fast, and transparent. However, most freelancers and small businesses continue to struggle with slow settlement timelines, high foreign exchange markups, unexpected charges, and manual RBI compliance steps that create frustration and uncertainty.
This guide breaks down how international payments to India actually work. It compares all the international payment methods from traditional SWIFT transfers to modern virtual multi-currency accounts, so you’ll learn the real differences in cost, speed, compliance, and documentation. You’ll also understand exactly which option is best for your workflow, transaction size, and RBI’s FEMA requirements.
International Payment Routes Available in India
Bank Wire Transfers (SWIFT)
A bank wire transfer is the traditional method for receiving international payments in India. The client’s bank sends funds directly to your Indian bank account through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network using your SWIFT code, account number, and branch details.
The transfer passes through multiple intermediary banks, gets converted to INR at your bank’s exchange rate, and typically settles within 3–5 business days.
Most Indian banks do not use the mid-market rate when converting foreign currency to INR. Instead, they apply a 2–4% markup over the interbank rate ,a cost often overlooked by receivers making international payments.
Example:
Mid-market rate: $1 = ₹83.50
Bank’s SWIFT rate: $1 = ₹81.00 (3% markup)
On a $5,000 transfer:
True value = ₹417,500
Amount received = ₹405,000
Loss = ₹12,500 per transaction
Over 12 such international payment invoices are issued annually, which could result in a hidden markup of nearly ₹ 1.5 lakh.
Banks may also charge FIRA issuance fees (₹200–₹500) per transaction, and settlement can be delayed due to intermediary verification or compliance checks.
Best Suited For:
B2B transfers of more than ₹5 lakh where clients require direct bank-to-bank remittance
Well-established businesses with dedicated finance and compliance teams.
Not recommended for:
Freelancers or SMBs handling multiple small payments monthly.
Anyone needing quick settlements or looking to minimize costs.
Remittance Services (Western Union, MoneyGram)
Remittance platforms such as Western Union, MoneyGram, and Wise P2P are primarily designed for personal transfers, not business receipts. A sender can initiate a transfer online or through an agent for cash pickup or direct bank deposit in India, typically settling within 1 to 3 business days.
Costs and Limitations:
Wise P2P: It offers near–to–mid–market exchange rates with a 1 to 2% fee. Others apply higher service charges and additional foreign exchange markups, reducing the final credited amount by 5 to 10%. These platforms do not issue FIRAs, which means they are non-compliant for exports or GST-linked business payments.
Best suited for personal remittances, family support, or one-time transfers, but not suggested for freelancers or SMBs that require invoice-level documentation, RBI/FEMA compliance, or GST reporting.
Online International Payment Gateways (PayPal, Stripe, Razorpay)
Online International payment gateways, such as PayPal, Stripe, and Razorpay, enable clients to pay using their platform balance, credit card, or bank transfer. Funds are then settled in INR to your Indian bank account, typically within 1 to 3 business days.
These gateways are popular among freelancers and SMEs because they simplify client payments and integrate easily with marketplaces and e-commerce systems. However, they often involve higher transaction fees, forex markups, and manual compliance tracking, which can impact profitability for frequent users.
PayPal
PayPal is a globally recognized platform,widely trusted by clients and integrated into popular freelance marketplaces. While it offers convenience and familiarity, the fees are quite high, with approximately 7 to 11% in total due to fixed charges, transaction fees, and a 3 to 4% hidden forex markup. Settlement typically takes 1 to 3 days, with the first transfer often longer.
It issues a monthly consolidated FIRA, simplifying compliance but lacking transaction-level granularity.
Suitable for Freelancers and creators on marketplaces like Upwork, Fiverr, Etsy, for small to medium invoices, where best-in-class simplicity and client trust outweigh the costs.
Stripe
Stripe is preferred by developer-focused tech teams for its robust APIs, transparent pricing, and support for over 135 currencies. Its all-in fees hover around 6.3%, with about 2% forex markup that is transparent and thus easier to account for. Settlement occurs within 2 to 5 days; however, approval for international payments in India is more selective, and actual payouts involve technical setup. The platform provides detailed payment advice, but you need to obtain your FIRC through your bank.
Suitable for: SaaS companies, startups, teams with in-house tech capacity, and those who prioritize transparency and flexibility for higher-value or API-driven payments.
Razorpay
Razorpay started as an India-centric payments gateway, primarily serving domestic merchants. It allows accepting international credit cards, but its strengths lie in local e-commerce and online merchant services. It does not assign local virtual accounts in foreign currencies nor facilitate direct foreign wire transfers, which limits its usefulness for freelancers expecting to receive multiple international payments directly into foreign currency accounts.
Suitable for: Indian e-commerce sellers accepting global cards, but less suited for freelancers or SMEs relying primarily on direct B2B international wire transfers.
While online payment gateways offer convenience and wide acceptance, their high transaction costs, forex markups, and manual compliance requirements make them less effective for growing freelancers or SMBs.
For regular cross-border receipts, dedicated fintech platforms that provide real-time, low-cost, RBI-compliant virtual accounts are a more sustainable long-term solution.
Virtual Multicurrency Accounts (Infinity, Skydo, Wise Business, Payoneer)
Virtual multicurrency accounts are now the modern standard for receiving international payments. Platforms like Infinity, Skydo, Wise Business, and Payoneer let Indian freelancers and SMBs receive payments like local businesses abroad, using real bank details in major currencies such as USD, EUR, GBP, CAD, and AUD, and more.
Clients can pay via local routes, bypassing SWIFT fees and delays, while funds are converted at live mid-market rates and settled to Indian accounts within 1–2 days, complete with automatic RBI-compliant FIRA documentation.
Infinity: Offers real US, EU, UK, CAD, and AUD accounts with 50+ supported currencies and 1-day INR settlement. Charges a flat 0.5% all-inclusive fee with no FX markup or hidden costs, and issues automatic FIRA after each withdrawal through RBI-authorised banking partners.
Best for freelancers, startups, and SMBs needing predictable, low-cost settlements with full compliance and per-transaction documentation.
Skydo: Provides local receiving accounts in the US, EU, UK, CAD, and AUD with zero FX markup and live mid-market rates. Its pricing is tiered , $19 up to USD 2,000, $29 up to USD 10,000, and 0.3% above USD 10,000.
Built specifically for Indian exporters, it suits creators and SMBs who prefer fixed-fee transparency.
Wise Business: Delivers multi-currency accounts with real banking details in USD, EUR, GBP, AUD, and others, converting at the mid-market rate with no hidden spread. Fees average 1.6–1.8% plus a small USD 2.50 per e-FIRA.
Ideal for SaaS or tech-savvy teams managing multiple currencies.
Payoneer: Integrates with major global marketplaces (Amazon, Fiverr, Upwork) and provides receiving accounts in USD, EUR, GBP, and JPY. It applies an FX conversion markup of ~2–3% when converting to INR and may charge inactivity fees for low usage.
It's a popular choice among marketplace-centric companies (such as Amazon, Fiverr, and Upwork), as Payoneer is already integrated into these ecosystems.
For modern Indian freelancers and SMBs, Payoneer offers a regulation-ready and efficient way to receive international payments, replacing slower, markup-heavy traditional methods.
Fee Structure Comparison
Freelancer Earning $2500/month(12 Invoices /Year)
Method | Per-Transaction Cost | Annual Cost | 5-Year Cost |
Bank SWIFT | $75 (3% FX markup) + ₹250 FIRA = ~$77 | $924 | $4,620 |
Infinity | $12 (0.5% flat fee) | $144 | $720 |
Skydo | $23 (flat $19 + minimal fee) | $276 | $1,380 |
Wise Business | $44 (1.8% + FIRA) | $528 | $2,640 |
PayPal | $185 (7.4% all-in) | $2,220 | $11,100 |
The RBI Compliance & Purpose Code
Every international payment received in India is governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA). The RBI requires all inbound remittances to carry a purpose code, which specifies the reason for the transfer. This ensures that foreign exchange inflows are accurately tracked, verified, and reported for compliance and taxation purposes.
Purpose codes serve four key functions:
FEMA Compliance: Every cross-border transaction must declare its purpose to meet FX regulations.
AML/KYC Requirements: Anti-money laundering laws require traceability for all international fund flows.
Export Incentive Eligibility: Government schemes, such as MEIS and PLI, utilize purpose codes to track export revenue.
Tax Reconciliation: Correct tagging simplifies ITR filings and GST reconciliation for freelancers and businesses.
Using the incorrect code can cause your transaction to be flagged for manual review, which may result in delayed settlement and documentation requirements.
Purpose Codes in Practice:
Each purpose code is an alphanumeric identifier and must be communicated to the sender before payment initiation. Banks use these codes for FEMA reporting, and using the correct one ensures your income is recognised correctly in audits and filings.
FIRA (Foreign Inward Remittance Advice):
After funds arrive, the receiving bank issues a FIRA. A document that includes the sender’s details, amount received, and declared purpose. It’s required for accounting, GST input claims, and any other claims. Traditional banks often charge ₹200 to ₹500 per certificate and may take several days to issue it. Fintech platforms like Infinity automate this process, generating an instant digital FIRA for every transaction at no extra cost.
Why is Infinity the practical choice for international payments?
Infinity simplifies RBI compliance from the moment your account is created. Based on your declared business activity (for example, a freelancer providing software services), the platform automatically tags each inbound international payment with the correct RBI purpose code and generates a digital FIRA once funds are settled. Beyond automation, Infinity combines speed, transparency, and compliance. It is, in principle, authorized by the RBI, partners with regulated Indian banks, and streamlines every step of international payment processing, from FEMA reporting to 1-day INR settlement, thereby eliminating manual effort and delays.
Key benefits of using Infinity at a glance:
1-day INR settlement for most inbound receipts (no SWIFT delays).
0% FX markup and a flat 0.5% all-inclusive, fully transparent pricing.
Automatic FIRA for every transaction, ready for accounting and GST filings.
Bank-grade security with two-factor authentication and encrypted transfers.
SWIFT-free payments ,clients pay to local virtual accounts, cutting intermediaries and costs.
Combining automated purpose code tagging with instant FIRA documentation, Infinity ensures every international payment remains fully compliant, transparent, and audit-ready.
Route your next international invoice through Infinity and experience faster settlement, clear pricing, and end-to-end compliance, all working together to keep your cash flow smooth and predictable.
