PayPal in India: Charges, Review and Alternatives

PayPal in India has been a go-to platform for international payments in India, used by both businesses and individuals. As of early 2025, PayPal commands a 45% share of the global payments market, according to Chargeflow,  making it the most widely used payment platform worldwide.

Whether it’s sending money abroad, integrating with e-commerce platforms, or managing invoices, PayPal India offers a variety of features that make global transactions easier.

But is it really the best option out there? In this blog, we’ll dive into what PayPal in India has to offer to its users, including its charges, key features, and real user experiences. Plus, we’ll explore whether there are better, more cost-effective alternatives for managing your international payments.

An Overview of PayPal in India

PayPal's India's credibility and global reach make it a popular choice for receiving international payments in India. It allows businesses to accept payments in over 100 currencies through multiple payment methods like debit card/credit card payments and subscription models. It also offers customized solutions based on the size and scale of the organization. 

It also provides monthly digital FIRAs to Indian businesses and freelancers, which acts as proof of receiving international payment. 

Additionally, PayPal offers buyer protection program which reimburses buyers for purchases that either do not arrive or do not match the seller's description.

Similarly, PayPal in India provides seller protection for businesses in cases of unauthorized transactions or undelivered shipments. Sellers must provide proof of shipment to qualify for this protection.

The platform also enforces strict security measures, including 24/7 account monitoring, to ensure the safety of funds.

Does PayPal work in India?

PayPal works in India. However, it's important to note that not all its services are available in every country including India.

PayPal does not support domestic transactions or local transfers in India meaning businesses cannot receive local payments in INR via PayPal. Businesses can receive international payments but cannot send payouts internationally from India. 

Individuals i.e. personal users can use PayPal to make international payments. You need the seller's email address, and they’ll need a PayPal account to receive the payment. However, note that features like Buy Later and PayPal Credit are not available in India.

Is PayPal safe in India?

PayPal is generally safe to use in India, offering end-to-end encryption, secure vaults, real-time transaction monitoring, and buyer-seller protection.

While PayPal’s security is often considered unparalleled, a recent breach has raised concerns about its safety in India.

Earlier this year, some PayPal users in Singapore received automated notifications via email or PayPal inbox messages about activities like profile changes and transaction receipts. Upon checking their accounts, some victims discovered unauthorised deposits or transfers to unfamiliar bank accounts added by cybercriminals.

Although this incident raised eyebrows, it appears to be an isolated case and does not reflect the overall security of PayPal in India.

PayPal Charges for receiving money in India

PayPal India's convenience and range of services come with a relatively hefty price tag. Broadly, PayPal India’s charges for receiving international payments can be categorised under the following heads:

Transaction Fee

When you receive an international business payment via PayPal in India, the platform charges a 4.40% transaction fee. For example, if you receive USD 1000 from a US client, PayPal will deduct USD 44 as a fee. You can factor this fee into your invoice, pay it yourself, or split it with your client, either way, the high transaction fee makes receiving international payments relatively expensive through PayPal in India. 

Fixed Fee

Along with the transaction charges, PayPal in India also levies a fixed fee depending on the currency of the transaction. 

Here are a few examples of the fixed fees for some popular currencies:

You can find the full list of fixed fees across different currencies right here. 

Currency Conversion Fee

However, that’s not the whole story. PayPal India also adds a 4% currency conversion fee to the prevailing exchange rate when converting foreign currency to Indian rupees. This means you receive a lower exchange rate than the market rate, thanks to PayPal's currency conversion rates

For example, if the current market rate is approximately INR 86 per USD (as of 25th March 2025), PayPal’s effective exchange rate would be 4% less, which is INR 82.5

In summary, receiving international payments through PayPal India involves:

4.4% transaction fee + fixed fee (varies by currency) + 4% currency conversion fee.

Can I Use PayPal to Receive Money Internationally?

Yes, in India you can use PayPal to receive money internationally, both business and personal payments. Paypal also offers a wide range of payment options including bank transfers, cards and more. However, receiving money internationally with PayPal comes with fees, which we will discuss now. 

How Much Does PayPal Charge to Receive Money?

To better understand PayPal India’s charges, let’s imagine you’re receiving an international payment of USD 5000 from your US-based client. Here’s how much you’ll pay in fees with PayPal India:

Firstly, there’s a 4.4% transaction fee, totalling:

5000×4.4% = 220 USD

On top of that, a fixed fee of 0.30 USD is applied, making the total fee before currency conversion USD 220.3.  Now after deducting USD 220.30 from USD 5000, we are left with USD 4779.70, which will be converted to INR

Considering the current exchange rate of 1 USD to INR 86 (approximately as as of 25th March 2025), PayPal India also adds a 4% currency conversion fee, resulting in an effective exchange rate of 82.5. So, USD 4779.70 as per the effective exchange rate would be INR 3,94,267.5

In total, you’ll receive approximately INR ​​3,94,267.50 for your payment of USD 5000 in India, the full value of which at the live forex rate is (5000*86) INR 4,30,000

This means PayPal India will charge you close to USD 415 (or INR 35,733) for receiving this payment and depositing it in your Indian bank account. 

PayPal Review in India: Security, pricing, support and more

PayPal is undeniably one of the leading names in global payment solutions. So, let's delve into some PayPal reviews to gauge the opinion of users on various aspects of PayPal in India.

Convenience and Security

PayPal India is widely regarded for its ease of use. Its user-friendly interface, seamless integrations, and diverse payment options make it a popular choice for global business transactions. Additionally, PayPal’s robust security measures inspire confidence, contributing to its widespread acceptance around the world.

Fees and Charges

Despite its extensive offerings, PayPal's services come with a significant price tag. Users of PayPal in India have noted the platform's high transaction fees, combined with currency conversion charges and other associated costs, making it a relatively expensive option for receiving international payments in India. 

Customer Support

Users have mixed opinions about PayPal’s customer support. While some find it helpful, others find it unsatisfactory. A common complaint is the sudden freezing of PayPal accounts for security reasons without prior notice, coupled with the inability of customer support to resolve this issue. Many also report that the support team lacks the expertise to handle more complex problems effectively. 

Skydo: A Viable Alternative to PayPal in India to Take Note of

Despite its global acceptance and credibility, PayPal’s high charges and instances of limited customer support have prompted users to seek alternatives for receiving international payments in India.

Skydo emerges as a strong alternative, offering a fast, secure, and cost-effective solution for businesses. With its flat fee structure, which is often 8x less expensive than PayPal, along with dedicated customer support and seamless onboarding, Skydo has become a go-to choice for companies and freelancers to manage their global payments. Additionally, platforms like Wise Payments Limited. and Payoneer are also viable substitutes to PayPal India for receiving international payments and transferring them to your local bank account.

Parting Thoughts

Choosing the right payment partner for your business is crucial. Issues like the lack of FIRA, forex markups, and currency conversion fees can make international transactions costly and inconvenient.

When selecting your international payment provider, consider the following factors:

Pricing: International transactions can be expensive, and there's no standard pricing model. Look for a provider with competitive rates and transparent fee information so you can keep more of your hard-earned money.

User Experience: Managing global payments should be straightforward. Opt for an easy-to-use platform and reliable customer support to ensure smooth transactions.

Compliance: Cross-border payments are closely monitored to detect any suspicious activity. Select a trusted payment platform that meets regulatory requirements and simplifies compliance for you.

At Skydo, we offer a fast, secure, and less-expensive solution for you to receive international payments. Switch to Skydo today and enjoy the best in global payment solutions for your business.