Global payments
Posted on Jan 16, 2026
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Quick Summary:
In 2026, businesses and individuals in India can receive international payments through a variety of options available. These include bank wire transfers (SWIFT), virtual international accounts, payment gateways, remittance services, and other alternative methods.
SWIFT bank transfers are widely accepted for larger B2B payments in India. Although this method comes with its own drawbacks, such as being expensive, time-consuming, and requiring too much paperwork. However, it is one of the most reliable methods as it involves the Indian banking system.
Virtual multi-currency bank accounts allow Indian users to receive international payments using local bank details of that particular country. Virtual multi-currency account offers faster settlement, lower and transparent transaction costs, and minimal or zero FX margins.
Payment gateways in India, like PayPal, offer international clients the ability to pay using a card or online checkout. But these payment gateways typically charge higher processing fees and currency conversion fees.
All international payments in India are governed by RBI and FEMA regulations. This includes entering the right purpose codes and filling out the correct foreign remittance documentation.
Choosing the right payment method depends on payment size, nature of business, client location, and compliance needs.
Why receiving international payments matters in India (2026)?
India continues to be the global hub for freelancing, SaaS services, IT services, consulting, and export. Receiving international payments in India is no longer an occasional event; it has become a core part of monthly revenue.
In 2026, as the competition grows, businesses are facing tighter margins, faster operating cycles, and stricter regulatory checks. A poor system for receiving international payments can severely affect how your business operates. Delays in receiving funds can affect the cash flow of the business, and hidden charges can silently eat into profit margins.
So, it's very important to understand how international payments actually move, what they cost, and how they are regulated. This is very critical to understand, as it helps in running a sustainable global business from India.
RBI, FEMA, and other compliance rules for international payments in India
All international payments in India fall under the category of the Foreign Exchange Management Act (FEMA) and are regulated by the Reserve Bank of India (RBI).
All banks and other payment platforms require purpose codes to identify the nature of the transaction; for example, all transactions done for software services are categorised under P0802, consulting services under P1006/S1006, and so on. These codes are mandatory and help regulators track foreign exchange inflows.
For business receipts or as proof of receiving international transactions, banks and other payment platforms issue a FIRA or FIRC. This document is essential for:
Accounting and audits
GST export compliance
Proving a foreign income source
While in India, the export of services is usually zero-rated under GST, income received from abroad is still taxable under Indian income tax laws.
Let’s discuss a few commonly used methods of receiving international payments in India in 2026.
Method 1: Receive international payments via the bank (SWIFT transfer)
A SWIFT transfer is a traditional bank-to-bank international payment. Your global client sends money from their bank using your Indian bank’s SWIFT code, account number, and branch details. The payment often passes through one or more intermediary correspondent banks before reaching your account.
What are the fees and FX structure of SWIFT transfer?
SWIFT transfer usually involves a layer of fees and charges. Fees are charged by the sender’s bank, intermediary bank, and receiver’s bank. Then there is FX markup on the live exchange rate that is charged by the banks. Other than these charges, there are a few banks that charge for FIRA/FIRC as well. So, SWIFT fees are often charged at around 6%-7%.
Settlement timeline via SWIFT transfer
SWIFT transfers usually take 3-7 business days. Delays in the SWIFT method are common as there are multiple banks involved, and a delay from one bank could lead to an overall delay.
Compliance and documentation in the SWIFT method
Banks require purpose codes and may ask for invoices or contracts. FIRA issuance is often manual and slow.
SWIFT transfers are best suited for large, infrequent B2B transactions, especially when clients insist on traditional banking channels.
Method 2: Receive international payments via a virtual multi-currency account
Virtual multi-currency international accounts allow Indian users to receive foreign payments using local bank account details in other countries. Your client makes a domestic transfer in their own country, while the platform manages currency conversion and settlement to India.
Example
For example, platforms like Infinity provide Indian freelancers and businesses with international collection accounts. A US-based client can pay into a local US account, while the funds are received in the multi-currency account, and it can be converted or kept on hold as per choice. The amount is then settled into the user’s Indian bank account within 24 hours.
What are the fees & FX Structure via multicurrency account?
Virtual accounts like Infinity typically charge a transparent platform or processing fee that is 0.5%(inclusive of all) and a zero FX conversion margin when converting the foreign currency.
There are no intermediary bank deductions, which makes payouts predictable. Clients can predict the payout through Infinity’s currency converter tool.
What is the settlement timeline via multicurrency account?
Funds are usually settled within 24 hours (in the case of Infinity), while other platforms might take more time. This is significantly faster than SWIFT transfers.
Compliance & Documentation via multicurrency account
Purpose codes, KYC, and foreign remittance documentation are handled digitally. This makes it easy to access transaction records.
This method is ideal for freelancers, SaaS founders, agencies, and exporters who receive international payments regularly.
Method 3: Receive Global Payments via Payment Gateways (PayPal)
How do payment gateways work in India?
Payment gateways in India enable international customers to pay using credit cards, debit cards, or online payment links. The gateway processes the payment and settles funds to your Indian bank account after conversion.
Example
A common example is PayPal. An Indian freelancer can send an invoice through PayPal to a foreign client. The client pays using a card or bank account, and PayPal converts the funds to INR before crediting them in India.
What are the fees & FX Structure of payment gateways in India?
Payment gateway costs usually include payment processing fees, international card fees, FX conversion margins, and a potential chargeback or dispute fees. These costs can be high for large or frequent transactions. For example, PayPal in India charges around 7% for receiving international payments. This charge includes a transaction fee, currency conversion fees, and a fixed fee that varies by currency.
Settlement Timeline of payment gateways in India
Settlement generally takes 2 to 7 business days, depending on risk checks.
Payment gateways are best for online businesses, SaaS subscriptions, and digital products, where ease of payment for customers is critical.
Method 4: Receive international payments via remittance services
How do remittance services work in India?
Remittance services are designed primarily for personal money transfers. The sender initiates a transfer, and funds are credited directly to an Indian bank account. This service is not used by businesses and professionals for receiving international payments.
Example
For instance, an overseas individual who sends money to their family in India for personal use may use a remittance service to transfer funds directly into their savings account. Some freelancers also receive small payments this way when clients prefer simple personal transfers.
Fees & Exchange Rates via remittance services
While money transfer through this method is often fast, there is a small in-built FX margin that is being charged. This makes remittance services less cost-effective for business use.
Settlement Timeline via remittance services
Most remittance transfers are completed within 1–3 days. Sometimes this transfer is completed within a day as well.
Compliance Limitations of remittance services
These services often do not provide adequate business documentation, such as FIRA. This makes them unsuitable for GST or audit purposes.
Remittance services are suitable for personal transfers or very small, infrequent payments. But for professional or scalable business income, remittance service is not a suitable method.
Method 5: Other Ways in India to Receive International Payments
Other methods exist, but are limited:
Demand drafts and cheques are slow and outdated.
Cross-border UPI is emerging, but it is still restricted in many countries.
Cryptocurrency payments involve regulatory uncertainty and tax complexity, which acts as a barrier.
That is why these methods are not recommended for mainstream business use.
How to Receive International Payments with Infinity (Step-by-Step Guide 2026)
Create an account with Infinity by clicking on sign up and then completing the KYC process.
Once you get access to Infinity’s multi-international account dashboard, you get collection account details for every currency.
Share these details with your overseas clients.
Clients make payments using local transfer methods.
Funds are received in your Infinity’s multi-currency account at a transparent rate. The final payout amount can be checked here.
Settlement happens within 24 hours in your Indian account once you convert the foreign currency.
Compliance documentation that is FIRA is generated digitally.
Why Infinity Is Recommended for Receiving International Payments?
Infinity is designed for Indian users receiving global payments. It offers faster settlement, lower FX costs that are just 0.5%(INCLUSIVE OF ALL), transparent pricing, and built-in compliance support like FIRA for every successful transaction, making it a practical alternative to traditional banking methods.
Conclusion
In 2026, receiving international payments in India is about more than just getting paid; it’s about speed, cost control, and regulatory clarity. While traditional methods like SWIFT transfer still exist, modern solutions like Infinity, PayPal, and others offer better efficiency and predictability. Understanding your options allows you to choose the right method and protect your margins as you grow globally.
FAQs related to international payments in 2026
How long do international payments take to reach India?
The timeline to receive international payments depends on the method used for receiving international payments. For example, payment platforms like Infinity take 1 business day to settle payments, while other methods like SWIFT might take 3-7 days.
What is the cheapest way to receive international payments in India?
Virtual international accounts like Infinity typically offer the lowest overall cost due to transparent FX rates and fewer hidden fees.
Do I need GST registration to receive international payments?
Not always, but the export of services requires proper documentation to claim zero-rated benefits.
Are international payments taxable in India?
Yes, foreign income is taxable under Indian income tax laws.
Can individuals receive international payments without a company?
Yes, freelancers and individuals can receive foreign payments if compliance requirements are met.
