Global payments
Posted on Jan 15, 2025
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When it comes to international payments, most Indian businesses and freelancers think of PayPal. It's a name that's almost synonymous with global transactions. But is it really the best option for you? Between hefty fees, hidden charges, and frustrating restrictions, PayPal often leaves users wondering, "Is there a better way?" Spoiler alert—there is.
Let’s break down PayPal's charges, services, and discuss why you should choose a PayPal alternative to reduce costs on international payments.
Understanding PayPal Charges in India
You have worked hard, delivered the project, and are waiting with bated breath for that payment to hit your account, only to find a chunk of it missing due to PayPal transaction fees. Here's what is eating into your earnings:
1. PayPal transaction fees
Every time you get paid, PayPal charges you 4.4%. Think about losing almost 5% of your money as PayPal transaction fee on every transaction! Over time, that's a huge dent in your hard-earned money.
2. Fixed Fees
As if the percentage wasn't enough, there is a fixed fee according to the currency that PayPal charges on the payments received. For example:
$0.30 USD for payments in USD.
€0.35 EUR for payments in EUR.
This means whether you get $10 or $10,000, you are paying extra.
3. Currency Conversion Fees
If you thought you were done with fees, think again. PayPal adds an additional 4% currency conversion fee when converting payments to INR. This hidden cost can eat up a significant portion of your revenue, especially if you're receiving payments in multiple currencies.
Now, imagine keeping all that extra money for yourself. Sounds better, right?
Here’s an overview of PayPal charges in India
Fee Type | Amount |
Transaction Fee | 4.40% of the transaction amount |
Fixed Fee | Based on currency received: • USD → $0.30 USD • EUR → €0.35 EUR • INR → ₹3.00 INR |
Currency Conversion Spread | 4.00% markup on mid-market FX rate |
Is PayPal Available in India?
Let’s talk about PayPal India and how you can use it for payments:
What You Can Do:
Receive international payments in multiple currencies.
Withdraw money directly to your Indian bank account.
Download invoices and view transaction reports for compliance purposes.
Create a PayPal payment link to receive payments faster.
What You Can't Do:
Send payments from India from a business account.
Make domestic transactions.
Escape from high fees. PayPal’s fee structure is rigid, and there’s no way around it.
Convert currency at live FX rates. PayPal uses competitive exchange rates.
These limitations make you ask, “Why am I paying so much for so little flexibility?” That’s why many businesses and freelancers switch to a PayPal alternative in India.
Related: Wise vs PayPal: Best Choice for Businesses and Freelancers
Is PayPal Safe to Use in India?
Yes, PayPal is safe to use in India. It uses advanced security measures, such as:
Data Encryption: Your financial data is encrypted, keeping it safe from cyber threats.
Real-Time Monitoring: Each transaction is monitored very closely for fraud.
Buyer-Seller Protection: PayPal protects the eligible transactions; therefore, you can rely on it as a safe mode for online payment.
Although PayPal is safe, its past account-freezing incidences and extended dispute resolutions give a headache. Just when you need the money the most, your account freezes with thousands of dollars locked in. That's not only frustrating but also business-stopping.
Why pay high transaction fees and risk freezing your earnings when you can receive payments at low costs with a PayPal alternative?
Introducing Infinity: The Best PayPal Alternative in India
Infinity is a cross-border payment platform that offers a cost-effective solution for international transactions, helping businesses save on fees and streamline cross-border payments with ease.
It is a faster, safer, and more affordable alternative to PayPal.
Take More Earnings Home
With so many PayPal charges in India, including transaction fee and currency conversion fee, you lose almost 8-9% of your earnings.
Infinity charges a flat 0.5% transaction fee on all international payments with no forex-margin. This helps you save more.
Example:
Here is an example of how much extra earnings you can make if you choose Infinity over PayPal.
(We’ve assumed the midmarket rate as $1 = ₹85)
Metric | PayPal | Infinity |
Transaction Fee | 4.4% = $44.00 | 0.5% = $5.00 |
Fixed Fee | $0.30 | $0 |
Total Fee (USD) | $44.30 | $5.00 |
USD After Fees | $955.70 | $995.00 |
FX Rate Used | ₹81.60 (4% markup) | ₹85 (mid-market) |
INR Received | ₹77,985.12 | ₹84,575.00 |
Total Loss from ₹85,000 | ₹7,014.88 | ₹425.00 |
Extra Saved Using Infinity | — | ₹6,589.88 more 💰 |
Multi-Currency Account
Forcible conversions and additional charges through PayPal are history now. With Infinity multi-currency accounts, you can keep several currencies in the same account and then convert when you prefer to do so, not when it becomes the other party's turn to make some profits.
Get Instant FIRA, No More Delays and Paperwork
Infinity FIRA offers instant Foreign Inward Remittance Advice. You stay compliant with the least possible troublesome paperwork.
Infinity is not just a payment solution but a smarter way to do business globally.
PayPal vs. Infinity
Here’s a quick comparison on PayPal vs Infinity for receiving international payments
Feature | InfinityApp | PayPal |
Transaction Fee | 0.5% | 4.4% |
Fixed Fee per Transaction | ₹0 | $0.30 USD |
Currency Conversion Fee | 0% (uses mid-market rate) | ~4% markup on exchange rate |
FX Rate Transparency | Transparent (live market rate) | Marked-up and not clearly disclosed |
Built for Indian Users | Yes, India-first approach | Global-first, with restrictions in India |
How to Switch from PayPal to Infinity
It is easier than you think to switch from PayPal to Infinity. Here's how you can do it:
Step 1: Sign Up
Create your account in minutes on Infinity’s website.
Step 2: Complete KYB
Keep your account secure and compliant by completing the quick KYB process.
Step 3: Update Payment Details
Simply update your payment instructions for clients, and you’re ready to go. With lower fees and better features, you’ll immediately notice the difference in your bottom line.
Final Thoughts
PayPal may be the default online payment service of choice for sending money across the borders in India for years. However, its higher fees, additional currency conversion fees, and even more limitations, make people look for a PayPal alternative.
Infinity International Payments brings much-needed fresh air with transparent pricing, flexible multi-currency accounts, and a user-first approach.
Infinity provides international payment services at a flat fee of 0.5% (inclusive of all) with no other charges. You can convert your payment at a live FX rate without worrying about the FX markup.
So it's time for you to switch from your older methods and start saving on your international payments instantly.
FAQs on PayPal Alternative in India
1. Is PayPal available in India?
Yes, PayPal is available in India. You can receive international payments in multiple currencies.
2. What is the best alternative to PayPal?
Infinity is the best PayPal alternative in India because it charges a flat 0.5% transaction fee. It also offers better exchange rates and faster payouts.
3. Is PayPal safe in India?
Yes, PayPal is secure and regulated in India, but its limited features make many users prefer a PayPal alternative with more flexibility and local support.
