Global payments
Posted on Dec 27, 2025
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Quick Summary:
PayPal in India remains a significantly popular choice when it comes to freelancers and exporters. But as PayPal is not an Indian-based payment platform, it comes with high costs and limitations.
PayPal is considered to be a costly platform due to its fees. The transaction fee is as high as 7%, including additional charges like currency conversion charges.
For Indian-based clients, Infinity has been considered the best alternative to PayPal in India. Infinity provides faster settlements, lower costs, and full compliance with RBI and FEMA regulations.
Other alternatives like Wise, Stripe, and Payoneer are also available in India. The choice of platform depends on the use cases, like business model, transaction size, and client needs.
This blog will give you in-depth information about PayPal in India, its charges, features, and what other alternatives are available in India.
Does PayPal work in India in 2025?
Yes, PayPal works in India, but only for cross-border transactions. PayPal in India no longer supports domestic transfers. This means Indian users can only receive and withdraw international payments linked to an Indian bank account. So, this makes PayPal suitable for freelancers, businesses, and exporters who work with global clients.
The platform is fully compliant with RBI regulations, which means Indian users must fill out FIRA documentation for each international payment received. PayPal also converts your foreign currency into INR automatically, but it comes with a markup fee.
What are PayPal transaction fees in India?
Now, let's talk about one of the biggest drawbacks of PayPal: the transaction fees. If you want to use PayPal in India for receiving international payments, then it is very important for you to understand how much it actually costs to receive payments from PayPal. Let’s break down and see what the fees charged by PayPal for Indian professionals for receiving international payments are:
Transaction fees: PayPal charges around 4.4% as platform fees for processing international payments. Indian users who want to receive international payments through PayPal have to pay a transaction fee of 4.4%. This is the standard amount paid by all Indian professionals for their business payments.
Conversion fees: This is the fee that many people fail to notice. PayPal actually charges another hidden fee, which is a conversion fee. So when you convert an international payment, let's say, USD to INR, you are not converting it on the live exchange rate. Instead, there is a markup of 4% on the live exchange rate that is being charged. For example, if the exchange rate is ₹86 per dollar, then PayPal might convert your payment at ₹82- ₹83 per dollar. So this actually creates a difference in what you were supposed to receive, and this makes you receive fewer rupees in return for your dollars.
Fixed fees: There is a small fixed fee charged by PayPal for the currency you receive. This fee varies from currency to currency. For instance, the fixed charge for receiving the payment in US dollars is $0.30 USD, for Euros, it’s €0.35, and for British Pounds it's £0.20. The fixed fee is a small fee, but if you are receiving a small payment, this could eat up a big chunk of your payment.
So to summarise this, PayPal charges you typically a transaction fee of 4.4% + fixed fee (depending on the currency) + a conversion fee of 4%.
Is PayPal safe and reliable for Indian users?
Yes, PayPal is widely trusted globally. Due to its robust security protocols like two-factor authentication, encryption, and fraud monitoring, it gives confidence to both parties involved in international transactions. This is particularly important for freelancers who may work with unknown clients.
However, there have been several complaints by Indian users about the delays in account verification and regional restrictions when withdrawing large amounts of money. Customer support can vary from country to country, as PayPal is not an Indian company.
While the platform is secure, these operational limitations highlight why some users prefer alternatives with faster settlement and India-focused support.
Pros and Cons of PayPal in India (2025)
PayPal is one of the most globally recognised platforms. And its reputation brings both advantages and disadvantages for Indian users. Understanding these pointers in detail will help you understand whether it is suitable for you or not:
Pros of PayPal India (2025)
Global trust and recognition: PayPal/s brand is known worldwide. So this makes it easier for clients to trust the payment process. For freelancers and exporters, this trust factor is crucial, as clients are more comfortable sending money through a platform they know.
Easy setup: For Indian users, a PayPal account is easy to make and easy to link to Indian bank accounts. The platform dashboard is built to be user-friendly, which allows users to track payments, view transaction history, and manage invoices.
Buyer and Seller protection: PayPal’s protection policy offers a safety net to both buyers and sellers. If any client claims that a service was not delivered, PayPal can immediately mediate disputes.
Automated FIRA protection: For Indian users, PayPal generates FIRA (Foreign Inward Remittance Advice) documents, which help in compliance with RBI regulations. This automation reduces the administrative burden for freelancers and exporters who receive payments from international clients.
Cons of PayPal in India (2025)
High Fees and Currency Conversion Costs: PayPal in India charges a standard fee of 4.4% + other charges for international payments. Other than the transaction fees, PayPal also charges a conversion fee of 2.5-4% as a markup above the mid-market rate. Many Indian freelancers report that these charges make PayPal an expensive option compared to India-optimised alternatives like Infinity or Wise.
No INR Wallet: As PayPal in India does not support any domestic transfer, it does not provide its Indian users with a domestic INR wallet. This means Indian users cannot send money to another Indian PayPal account. All funds received in your PayPal account must be withdrawn to an Indian bank account, which takes up to 2-4 working days.
Slower Settlements Compared to Alternatives: PayPal in India is fast when it comes to sending and receiving international payments. But when it comes to withdrawing the foreign currency to an Indian bank account, the settlement process becomes slow. Depending on your Indian bank account and the transaction type, PayPal may take multiple business days to credit the funds.
Support Responsiveness Can Vary: Indian users often report delays in PayPal support, especially when a dispute arises. As it is not an Indian-based company, a few issues like compliance and verification might take longer than expected.
Best alternative to PayPal in India (2025)
With the limitations and costs of PayPal, Indian users increasingly turn to alternatives that are tailored to the Indian market. Here’s an in-depth look at the top options:
Infinity- The best alternative to PayPal in India
Infinity is a modern fintech payment platform designed for Indian professionals, freelancers, exporters, and startup founders to receive international payments. Infinity is the best alternative to PayPal in India, as it provides all the features of PayPal for receiving global funds but at a significantly lower cost. Infinity provides you with a multi-currency account that helps Indian professionals receive international payments in over 50+ currencies.
Why Infinity stands out as the best PayPal alternative in India
Low and transparent fees: Infinity charges a low and transparent fee of only 0.5%(Inclusive of all). Whereas PayPal at the same time charges a transaction fee of 4.4%, which is much higher than that of Infinity. This allows users to retain more of their earnings.
FX Markup: Infinity does not charge any FX markup and converts foreign currency at the live exchange rates. PayPal charges a 3-4% conversion charge.
Fast settlement: Funds received through Infinity are settled within 24 hours of the transaction. PayPal, on the other hand, takes 3-4 days of settlement.
FIRA and compliance: Infinity automatically generates FIRA after every successful transaction. This simplifies compliance for Indian users.
When to choose Infinity:
Any Indian professional (freelancers, exporters, startup founders, agency owners) can choose Infinity to receive their international payments. This is because Infinity has no limits on transfer and withdrawal amounts.
Infinity is the best PayPal alternative in India, as it charges much lower than PayPal and makes the process of international payments smooth and hassle-free.
If you are looking for a payment platform that is compliant with RBI and FEMA regulations, then Infinity is the best platform.
2. Wise – Transparent Mid-Market Rates
Wise is ideal for users who value transparent fees and accurate currency conversions. It provides a multi-currency account where users can hold, send, and receive money in multiple currencies.
Key Features of Wise in India:
Transparent fees: Wise charges a transparent fee of 1.6-1.8% as processing fees. Along with that, there is a tiny conversion fee that comes with the mid-market rate. Wise also charges separately for FIRC and GST for Indian users.
So, for example, if you are an Indian freelancer willing to receive $1000 through your Wise account, Wise charges as follows:
Wise processing fees= 22.64 USD, e-FIRC= 2USD, GST= 3.34 USD (mid market rate- 90.35).
So, you will be receiving a total of 87,829 in your Indian bank account. Whereas with Infinity you will be receiving 90,375. You can check out the conversions with Infinity's in-built currency converter.
Multi-currency account: Wise supports a multi-currency account, which allows users to hold balances in USD, EUR, GBP, and other currencies. This means you can receive funds in any currency, hold them in your Wise account and then convert it into INR. Wise also provides the feature of holding the funds in your Wise account, which allows you to wait if you expect the exchange rates to improve and then convert the funds at your discretion.
Clean user interface: Wise provides a clean user interface, making the overall experience for the users easy and smooth. The main motto of Wise is to make the movement of money cheap and simple.
Considerations while using Wise in India:
Transfer times are usually 1–2 business days for INR withdrawals.
Wise has one major drawback: a transfer limit. You can only receive an amount of $10000 per transfer to your Wise business account. If you wish to receive more than that, then that could be a hurdle for you while receiving international payments.
Wise offers digital FIRA to its Indian users. This helps Indian professionals to stay compliant. But this comes at a cost of USD2.50 per FIRA.
3. Stripe – Best for Online Businesses
Stripe is a payment gateway primarily for online businesses, e-commerce platforms, and subscription-based services. While it is not as user-friendly for individual freelancers as Infinity or Wise, it provides powerful features for businesses that need to process card payments globally.
Why Choose Stripe in India:
Card Payment Acceptance: Accept payments directly from customers’ credit and debit cards.
Integration Options: Ideal for websites, e-commerce stores, and SaaS platforms.
Secure and Compliant: PCI-compliant and globally trusted.
Considerations while using Stripe in India:
Stripe requires some technical integration, making it more suitable for tech-savvy businesses.
The fee structure is competitive but slightly higher than Infinity for regular cross-border payouts.
4. Payoneer – Ideal for Freelancers and Marketplaces
Payoneer allows Indian freelancers to receive payments from marketplaces like Upwork, Fiverr, and other clients. It provides a multi-currency account and competitive fees for recurring payments.
Key Features of Payoneer India:
Multi-currency account support: Like Infinity and Wise, Payoneer also supports a multi-currency account feature for receiving multiple currencies like USD, EUR, GBP, etc. You can receive payments from your global clients in these accounts.
Integration with marketplaces: Payoneer is popular among freelancers as it is integrated on many platforms like Upwork, Fiverr, etc. For example, if you are a freelancer earning through Upwork, you can integrate your Upwork account with your Payoneer account and get funds directly transferred into it.
Fee Structure: The Payoneer fee structure is a bit complicated, especially if you or your clients directly use the Payoneer account. The fee ranges from 0% to 3.2%. So it is cheaper compared to PayPal transaction fees of 4.4%.
Conversion charges: Payoneer charges a conversion fee of 2-3%. Other than that, they charge a little extra on top of the mid-market rate, which makes the whole fees somewhere between 2-5%, making it a costlier option for receiving international payments. But when compared to PayPal, it is a bit cheap, somewhere in the middle range.
Other important features: Payoneer provides its clients with other features, like a prepaid Mastercard that can be linked to your account. Although the availability of this feature to Indian users is not smooth due to the regulatory restrictions.
Considerations while choosing Payoneer in India
Payoneer charges an inactivity fee. This means if you haven't used your account within a time span of 12 months, you will be charged $29.95. This comes as a surprise to many users.
Other than the conversion fees, Payoneer charges an FX markup on top of the mid-market rate.
When it comes to the withdrawal part, Payoneer might charge a small fee when withdrawing your funds into your Indian bank account.
How to Choose the Right Payment Platform for You
Selecting the right payment platform depends on multiple factors:
1. Frequency of Payments:
If you receive payments regularly, a platform with fast settlements and low fees like Infinity is ideal.
2. Transaction Size:
For high-value invoices, even a small percentage difference in fees can significantly impact earnings. Platforms like Infinity or Wise reduce unnecessary deductions.
3. Client Preferences:
Some international clients insist on PayPal because of familiarity and buyer protection. In such cases, PayPal may still be necessary as a secondary platform.
4. Compliance Requirements:
For Indian exporters, ensuring FIRA compliance is crucial. Infinity and Wise automatically generate required documentation, making compliance effortless.
5. Technical Complexity and Integration Needs:
For online businesses and e-commerce, Stripe provides advanced integration options, but for freelancers or startups seeking simplicity, Infinity or Payoneer may be easier to use.
Decision-Making Tips:
Use Infinity as your primary platform for low fees, fast settlements, and compliance.
Keep PayPal for clients who demand it.
Use Wise for multi-currency flexibility and transparent rates.
Use Stripe if your business requires online card payments or e-commerce functionality.
Use Payoneer when working heavily with marketplaces like Upwork and Fiverr.
Conclusion: Why Infinity is the best alternative to PayPal in India
PayPal remains a convenient option for cross-border payments in India, but is less cost-effective than modern alternatives.
Platforms like Infinity provide faster settlements, lower fees, and compliance automation, making them the top choice for Indian freelancers, exporters, and startups. By choosing the right platform, you can maximise your earnings while staying fully compliant with Indian regulations in 2025.
Quick FAQs: PayPal India (2025)
Does PayPal work in India in 2025?
Yes, PayPal works in India only for receiving international payments; domestic INR transfers are not supported.
Can Indians receive international payments on PayPal?
Yes, Indian users can receive payments from overseas clients and withdraw funds to Indian bank accounts.
What are PayPal fees in India for receiving money?
PayPal charges 4.4% per transaction plus a fixed fee and an additional 2.5–4% currency conversion markup.
Is PayPal expensive for Indian freelancers?
Yes, PayPal is considered expensive due to high transaction fees and unfavourable exchange rates.
How long does PayPal take to transfer money to Indian banks?
Withdrawals to Indian bank accounts usually take 2–4 business days.
Does PayPal provide FIRA for Indian users?
Yes, PayPal provides FIRA documentation for international payments received in India.
Can I hold USD in PayPal in India?
No, Indian users cannot hold foreign currency balances; funds are auto-converted to INR.
Is PayPal safe to use in India?
Yes, PayPal is secure and uses encryption and fraud monitoring, but account reviews may cause delays.
Why do Indian users look for PayPal alternatives?
High fees, slow settlements, and poor exchange rates push Indian users to look for better options.
What is the best PayPal alternative in India?
Infinity is one of the best alternatives due to lower fees, faster payouts, and India-specific compliance support.
Is Infinity cheaper than PayPal?
Yes, Infinity charges significantly lower flat fees compared to PayPal’s percentage-based pricing.
Is Wise better than PayPal for India?
Wise offers better exchange rates and lower fees, but settlements may take longer than Infinity.
