PayPal India is one of the top choices for businesses and freelancers looking to receive international payments in India. With features like e-commerce integration, invoicing, and international money transfers, it’s a go-to platform for global transactions.

However, this comprehensive solution comes with significant costs. PayPal’s fees include a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true">4.4% transaction fee</a>, a USD 0.30 flat fee, and a<a href="https://www.paypal.com/in/webapps/mpp/paypal-fees#no-fee?no_follow=true"> 4% markup on the exchange rate,</a> which can add up while receiving cross-border payments. Given the steep fee, you might want to consider a few PayPal India alternatives.&nbsp;

To ease compliance, PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the <a href="https://www.paypal.com/in/webapps/mpp/firc-certificate?no_follow=true">15th of the subsequent month.</a>

That said, while PayPal is known for its convenience, there are some concerns about the quality of its <a href="https://www.g2.com/products/paypal-paypal/reviews/paypal-review-9475980?no_follow=true">customer support</a> including a lack of training and long wait times.&nbsp;

Here’s a snapshot of PayPal India’s offerings, pricing, and a rundown of its pros and cons

Before finalizing PayPal as your global payment solution, explore these PayPal alternatives that can help you receive international business payments in India with ease.

5 PayPal India Alternatives for Receiving International Payments

Stripe, an Irish-American company, is a renowned payment processing and merchant services platform. Accepting over 135 currencies, it stands as a solid alternative to PayPal for international payments. Stripe offers a comprehensive suite of payment solutions, enabling businesses to manage subscriptions, payments, taxes, and accounting all in one place.

Stripe's fee for international transfers can be expensive as it includes a 4.3%% transaction fee and an additional 2% currency conversion fee. 

Stripe does not provide FIRA to Indian businesses and freelancers, adding to their compliance burdens. Users have also expressed concerns about <a href="https://www.g2.com/products/stripe-stripe-payments/reviews/stripe-payments-review-9510506?no_follow=true">transparency in their communication</a>.

Skydo is a global payment solution simplifying cross-border payments for freelancers and businesses in India. It offers virtual international bank accounts to its users in under 5 minutes and also supports an entire payments ecosystem consisting of payment tracking, invoice generation and more.&nbsp;

Skydo simplifies payment conversions by using live Forex rates without any currency conversion fees or hidden charges. It provides a clear and straightforward fee structure making it a viable alternative to PayPal In India.&nbsp;

Additionally, to ensure adherence to RBI and government regulations, Skydo offers free and instant FIRA, ready to download after every transaction. Each user is assigned a representative to assist with the onboarding process and to address any questions at any time. However, Skydo currently supports only inward remittances into India. This means that Indian businesses cannot send money outward via Skydo.&nbsp;

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> is a leading payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies and integrating with leading marketplaces like&nbsp; Amazon and Walmart&nbsp;

In terms of fees, Payoneer offers free account setup, but transaction fees apply: Payoneer-to-Payoneer payments are free, credit card payments incur a <a href="https://www.payoneer.com/en-in/about/pricing/">3.2% + $0.49 fee</a>, ACH Bank Debits (US) cost 1%, and virtual account payments are free for EUR/GBP but up to 1% for USD.&nbsp; Withdrawals to local bank accounts attract up to a 3% fee for different currencies. Extra charges like bank or intermediary fees may apply. <a href="https://www.payoneer.com/en-in/about/pricing/">An annual fee </a>of $29.95 is charged if total payments received are below $2,000 in a year.&nbsp;

To simplify compliance, Payoneer offers free digital FIRAs to Indian businesses and freelancers. However, users have expressed dissatisfaction <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-5364712?no_follow=true">with Payoneer's customer support</a> which some have found to be virtually non-existent.&nbsp;

Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries.&nbsp; Initially a peer-to-peer remittance service, Wise now offers multi-currency accounts for both individuals and businesses.&nbsp;

Wise is known for using the mid-market foreign exchange rate with no markups.&nbsp; It charges a conversion fee depending on the currency used. Broadly speaking, <a href="https://wise.com/in/business/receive-money?_gl=1*nah2tw*_up*MQ..&amp;gclid=CjwKCAiAxqC6BhBcEiwAlXp459KoMqAfTn6WBqO0MdWYyma8kB9qqozJb1yUpdGTsxip73Axb2xyQhoCiLIQAvD_BwE">it is around 1-2% of the transfer value.&nbsp;</a>

For businesses, Wise provides digital FIRAs (compliance certificates) for an additional fee (USD 2.50 for USD transfers) making it a viable Paypal Alternative. 

While Wise offers a <a href="https://www.forbes.com/advisor/in/banking/wise-review/?no_follow=true">user-friendly interface</a> and efficient money transfer services, some users have noted that customer support <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true">can occasionally fall short in addressing and resolving issues effectively.</a>

Here’s a quick overview of Wise’s offerings, pricing, and its pros and cons:

Established in 2015, PingPong is a popular name in the cross-border payments arena, aiming to simplify international payments for freelancers, businesses, and e-commerce sellers. It offers multiple virtual accounts in global currencies and allows businesses to pay VAT/GST and other taxes with no additional costs.

PingPong charges a competitive 1% transaction fee, which is attractive but can become substantial for larger transactions. Additionally, since there is a lack of clarity around Ping Pong’s forex rate, there is a possibility of a markup on that rate. 

For compliance, PingPong provides free digital FIRAs to Indian businesses and freelancers, making it a viable alternative to PayPal India. While their customer service is generally prompt, some users have found the <a href="https://www.g2.com/products/pingpong-payments/reviews/pingpong-payments-review-8133929?no_follow=true">onboarding process cumbersome.</a>

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 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.

Top PayPal India alternatives for international payments

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EEFC account is a well-known term for exporters receiving international payments. EEFC account full form is Exchange Earners Foreign Currency.

 Offered by AD Category I Banks, an EEFC account allows you to retain foreign income received in its original currency (USD, EUR, GBP, etc.) for up to 60 days.&nbsp;&nbsp;In this article, we will dive into EEFC account full form, meaning, and benefits of an EEFC account, and explore other efficient and cost-effective ways to handle your international payments.

Since 2016, India’s cross-border remittances have grown at<a href="https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/point-of-view/pov-downloads/the-evolving-landscape-of-cross-border-payments.pdf?no_follow=true"> 8% CAGR, </a>fueled by global trade, travel, and a rising international workforce. Yet, high fees and hidden charges make these transactions costly and challenging.

 To address these issues, the Reserve Bank of India (RBI) introduced EEFC account.&nbsp; Being current accounts, these accounts do not yield any interest. Each bank offering EEFC Account supports a specific number of currencies, also allowing you to hold multiple currencies in a single account. Initially designed to help exporters manage their foreign exchange earnings, EEFC accounts are available to companies, individuals, and joint account holders.

EEFC Account Benefits: What Do You Need to Know?

EEFC account or EEFC account full form, Exchange Earners Foreign Currency Account, allows exporters to deposit their foreign exchange earnings without converting them to Indian rupees. Currently, multiple <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF?no_follow=true">Authorised&nbsp;Dealer (AD) Category I banks </a>in India offer EEFC account including DBS, ICICI, HDFC, Axis Bank and many more.&nbsp;

However, it's always a good idea to speak with the bank first to confirm their services.

Now, let’s take a moment to understand EEFC account benefits.

An EEFC account lets you hold foreign currency earnings until the last day of the following calendar month. For example, if you receive foreign payments on June 16th, you can keep them in your EEFC account until July 31st. This holding period gives you the flexibility to monitor forex rates and convert the funds to INR when it's most beneficial, while also allowing you more time to make foreign payments directly from your EEFC account without conversion

However, keep in mind that you can only retain your foreign exchange earnings until the last day of the succeeding calendar month  after which it will be automatically converted to INR. So, don’t get too comfortable parking your foreign exchange in your EEFC account—use it wisely before the deadline sneaks up on you!

An EEFC account not only lets you temporarily park your foreign exchange earnings but also enables you to make foreign payments without converting them to INR, avoiding two-way currency conversion costs.&nbsp;

As an exporter, when you receive foreign payments via your Indian bank account, they are typically converted into INR, incurring transaction costs and currency conversion charges. If you need to make an international payment, you'll have to convert your INR back into foreign currency, incurring additional fees. Essentially, you end up paying currency conversion costs for both receiving and sending foreign payments, doubling your costs.

An EEFC account bypasses this inconvenience by allowing you to retain 100% of your foreign exchange earnings and make foreign payments directly from the account without having to convert it.&nbsp;

In essence, an EEFC account facilitates seamless international transactions by giving users the option to hold and manage their foreign exchange earnings better.&nbsp;

Resident individuals of India, whether individuals or companies earning foreign exchange, can open an EEFC account. However, entities in<a href="https://nsez.gov.in/Resources/SEZ%20FAQs.pdf?no_follow=true"> Special Economic Zones (SEZs)</a> cannot open an EEFC account, though they can open a <a href="https://www.icicibank.com/nri-banking/bankaccounts/foreign-currency-account#:~:text=An%20RFC%20(Resident%20Foreign%20Currency,hold%20funds%20in%20foreign%20currency.?no_follow=true">foreign currency account</a>.

For context, a Special Economic Zone (SEZ) is a designated area where businesses operate without paying certain taxes and duties. It's essentially considered foreign territory for trade purposes.

Which Transactions are Eligible Under an EEFC Account?

As a current account, an EEFC account supports various transactions, including:

However, being a current account, an EEFC account cannot support capital account transactions. This means foreign remittances in the form of loans, investments, or returns on investments are not permitted in your EEFC account.

The process of Opening an EEFC account is similar to that of a regular current account. You'll need to complete an application form and submit the required documents. However, there are additional requirements, such as providing proof of status, which aren't typically necessary for a regular account.

Once you've submitted your application and documents, the bank will review them. Upon approval, they will furnish you with your EEFC account details, including the account number.

Do note that the procedure may vary slightly across banks, so it's advisable to consult with your bank to understand their specific application process.

What Documents are needed for opening an EEFC account?

Although the specific documents required can vary from bank to bank, here are the typical documents you'll need to open an EEFC account:

As we've discussed, an EEFC account can be opened by all foreign exchange earners, whether individuals, partnership firms, or public/private limited companies. Depending on the entity opening the EEFC account, specific documents may be required. For example:

These requirements ensure that the necessary legal and compliance standards set by the government of India are met for each type of entity.

What are the&nbsp; EEFC Accounts Charges?

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Most banks don’t charge a fee for opening and maintaining an EEFC account. However, there are several ancillary charges that banks may levy on various activities linked to EEFC accounts:

To get a complete picture of the applicable fees and charges for your EEFC account, make sure to talk to your bank. This will help you avoid any surprises and ensure you understand all potential costs involved.

Why Choose Skydo Over Traditional EEFC Accounts?

EEFC accounts offer exporters a convenient way to manage and park their foreign exchange earnings temporarily. This holding period allows them the freedom to monitor and choose the exchange rate at which they want to convert their foreign exchange.

However, despite these advantages, receiving international payments through an EEFC account can be quite costly, regardless of your banking partner. As we have seen, banks often levy numerous charges on EEFC account transactions, including SWIFT charges, currency conversion fees, forex markups, FIRA charges, and more. These fees can quickly add up, making the process expensive.

In summary, while an EEFC account offers flexibility and control, the associated costs can add up quickly.&nbsp;

<a href="https://www.skydo.com/blog/eefc-account-vs-payment-platforms">At Skydo, we understand the challenges of traditional banking </a>especially when it comes to cross-border transactions. For freelancers and small businesses, constantly monitoring forex rates and tracking bank fees is a time-consuming and resource-draining task. That’s why we offer businesses and freelancers a fast, secure, and less expensive way to receive international payments. With Skydo, you can set up an international bank account in less than 5 minutes. Your foreign clients can pay into this account, making it a local transfer and eliminating SWIFT charges.

Further, we convert your foreign earnings to INR at live forex rates, without any markup or currency conversion fees, ensuring you keep more of your earnings. All we charge is a flat transaction fee: USD 19 for remittances below USD 2000 and USD 29 for remittances over USD 2000. And yes, you also receive an instant FIRA for every transaction at no extra cost, helping you stay compliant.&nbsp;

Switch to Skydo and simplify your international payments while maximising your earnings. Experience the Skydo difference today.

EEFC Account Overview: Full form, Meaning, Eligibility & Benefits

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Before diving right into Wise alternatives, let us take a moment to understand what Wise is.

Wise (<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">formerly TransferWise</a>) is a global money transfer platform operating worldwide. While it initially started out as a peer-to-peer (P2P) remittance service, <a href="https://wise.com/?no_follow=true/">Wise</a> has since diversified its offerings to cater to businesses by introducing multi-currency accounts for both individuals and enterprises.&nbsp;

Beyond money transfer services, Wise provides debit/expense cards for use in 175+ nations. The platform is known for its transparent fees and it uses a mid-market foreign exchange rate without levying any forex markup. Wise levies a&nbsp; currency conversion cost that varies across currencies. However, broadly speaking it is around <a href="https://exiap.com.in/guides/wise-fees?no_follow=true">1.78% of the transfer amount</a>.

Coming to customer experience, Wise offers a user-friendly interface, however, some users have noted that their customer <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true">support occasionally lacks the effort</a> to understand and resolve queries fully

Here’s a quick snapshot of Wise’s offerings and pricing along with some of its  Pros and Cons:

Take a look at a few of the leading alternatives to Wise and see how you can be wiser while receiving international payments.&nbsp;

What are 5 Wise Alternatives for Receiving International Payments?

In the following sections, we will explore these wise alternatives in detail to see if they are your right choice for receiving international payments

Skydo is a wise alternative that simplifies cross-border payments for freelancers and medium/small businesses in India. It offers virtual international bank account details to its users in under 5 minutes and also supports an entire payments ecosystem consisting of payment tracking, invoice generation and more. 

Skydo simplifies payment conversions by using live Forex rates without any currency exchange fees or hidden charges. It provides a clear and straightforward fee structure making it a viable wise alternative.&nbsp;

Additionally, to ensure utmost adherence to RBI and government regulations, Skydo offers <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">free and instant FIRA</a>,&nbsp;unlike many traditional banks, which are ready to download after every transaction. Each user is assigned a representative to assist with the onboarding process and to address any questions at any time. This makes Skydo an apt alternative to Wise for freelancers as well as for businesses.

However, Skydo currently supports only inward remittances and business transfers. This means Indian businesses cannot send money internationally through Skydo and neither can individuals receive personal transfers.&nbsp; Further, it might also not be the most cost-effective  pick for smaller transfers, essentially for transfers below USD 1000

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> is a go-to payment solution worldwide and a viable wise alternative, both for personal and business transactions. It offers a comprehensive ecosystem for payment and financial services, including e-commerce integration, invoicing, international money transfers, and credit/debit card services making it a <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">solid alternative</a> to Wise.

However, business owners can find,<a href="https://www.paypal.com/in/home?no_follow=true/"> PayPal</a>&nbsp;to be an expensive option for receiving international payments. The costs include a 4.4% transaction fee, a USD 0.30 flat fee, and an additional 4% markup on the exchange rate. PayPal provides Indian businesses with <a href="https://www.paypal.com/in/webapps/mpp/firc-certificate?no_follow=true">monthly digital FIRA</a>. This means that all international transactions of the previous month will be referenced in a single FIRA, which will only be available by the 15th of the subsequent month.

In terms of customer experience, PayPal is widely applauded for its ease of use and convenience, however, some users have complained about its <a href="https://www.g2.com/products/paypal-paypal/reviews/paypal-review-9475980?no_follow=true/">inadequate customer support. </a>

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a>&nbsp;is quickly becoming a popular payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies and integrating with leading marketplaces like Fiverr and Toptal.

In terms of fees, Payoneer offers free account setup, but transaction fees apply: 

Payoneer-to-Payoneer payments are free, credit card payments incur a <a href="https://www.payoneer.com/en-in/about/pricing/">3.2% + $0.49 fee</a>, ACH Bank Debits (US) cost 1%.&nbsp; Virtual account payments are free for EUR/GBP but up to 1% for USD.&nbsp; Withdrawals to local bank accounts attract up to a 3% fee for different currencies. Extra charges like bank or intermediary fees may apply. <a href="https://www.payoneer.com/en-in/about/pricing/">An annual fee</a> of $29.95 is charged if total payments received are below $2,000 in a year.

To simplify compliance, Payoneer offers free digital FIRAs to Indian businesses and freelancers. However, many users have expressed dissatisfaction with <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-8804769?no_follow=true">Payoneer's customer support.</a>

Established in 2015, <a href="https://in.pingpongx.com/in/index?no_follow=true/">PingPong</a>&nbsp;is a wise alternative aiming to simplify international payments for freelancers, businesses, and e-commerce sellers. It offers multiple virtual accounts in global currencies and allows businesses to pay VAT/GST and other taxes with no additional costs.

PingPong charges a competitive 1% transaction fee, which is attractive. However, these low fees can add up and become substantial for larger transactions.&nbsp; Additionally, since there is a lack of clarity around Ping Pong’s forex rate, there is a possibility of a markup on that rate. 

For compliance, PingPong provides free digital FIRAs to Indian businesses and freelancers, making it a viable alternative to Wise. While their customer service is generally prompt, some users have found the <a href="https://www.g2.com/products/pingpong-payments/reviews/pingpong-payments-review-8133929?no_follow=true">onboarding process slightly cumbersome.</a>

Karbon Business initially started as a corporate card platform, hence the name Karbon Cards. However, since then they have expanded into other b2b offerings including facilitating international business payments for companies and freelancers. It offers both inward and outward remittance services.&nbsp; However,<a href="https://www.karboncard.com/accept-international-payments-india"> Karbon business&nbsp;only supports payments in USD.</a>

Karbon Business also offers live forex rates with a&nbsp;flat 1% fee&nbsp;for receiving international payments. While the pricing sounds competitive, the costs can stack up quickly for larger transactions. For example, receiving $10,000 would cost you ₹8,449 in fees—a steep price for high-value payments.

Karbon Business provides FIRA to Indian businesses and freelancers and also offers corporate cards and payout services tailored for businesses

Receiving International Payments with Wise Vs Skydo: A Quick Comparison

Both Wise and Skydo are viable solutions for receiving international payments in India. Let us quickly compare how much would it cost to receive USD 10,000 in India with Wise vs. Skydo:

Wise offers mid-market exchange rates without forex markup but adds a conversion fee that varies across currencies and charges for FIRC. While transparent, the total cost can add up quickly. This is how much you will be paying to receive USD 10000 in India with Wise

Skydo converts your payments at live forex rate, without any markup. It offers a flat fee structure of USD 19 for payments under USD 2000 and USD 29 for payments between USD 2001 and USD 10,000. Additionally, it offers instant FIRC for every transaction that too absolutely free.&nbsp; So with Skydo, receiving USD 10000 would just incur USD 29, saving you more than USD 100 dollars in fees as compared to Wise.&nbsp;&nbsp;Make the smarter, cost-effective choice—switch to Skydo today and keep more of what you earn!

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Wise alternative

Working with <a href="https://www.skydo.com/blog/track-your-international-payment-journey-from-skydo-to-your-bank?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">international clients</a> can enhance profitability and global visibility.&nbsp;However, it also brings about challenges such as cross-border payment complexities, export documentation, and tax compliance. To address these hurdles, financial institutions and payment platforms offer virtual accounts and generate unique vIBANs (virtual international bank account numbers) for each international transaction.

In this blog, we delve into the concept of international virtual accounts and explore how virtual account numbers streamline compliance management.

<a href="https://www.volopay.com/in/blog/what-is-virtual-bank-account/">A virtual account</a> is an electronic account that does not have a physical presence. They are typically used for specific purposes, such as online transactions, corporate banking, and cash management.&nbsp;

A virtual<a href="https://decentro.tech/blog/what-are-virtual-accounts/"> account number is</a> an 18-digit unique number linked with each virtual account to avoid sharing the account number associated with the real bank account. VANs are used while executing online transactions to ensure that the real bank account is not shared with the other party.&nbsp;

You can consider virtual accounts as passthrough accounts that assist in clearing transactions to the real account rather than holding any balance. Banks, payment platforms, and other financial institutions provide virtual account numbers to customers for quick transaction processing and better reconciliation.&nbsp;

Even though virtual accounts transact on behalf of traditional bank accounts, they offer unique features and benefits. For example, opening numerous virtual accounts is easier and quicker in comparison to opening traditional bank accounts which requires extensive documentation.&nbsp;

Furthermore, virtual accounts are cost-effective, easy to manage, and flexible compared to traditional bank accounts. They allow businesses to separate cash flows from multiple payers within the account.&nbsp;

If you want to receive international remittance in USD from a foreign entity, your international payment platform generates a vIBAN. You can quote this vIBAN to the sender to receive the payment.&nbsp;

vIBANs help businesses comply with regulatory requirements, such as the Payment Card Industry Data Security Standard (PCI DSS), by reducing the storage and transmission of sensitive cardholder data. Furthermore, in case of disputes or fraudulent charges, VANs and vIBANs provide a clear trail of transactions, making it easier for customers to identify and dispute unauthorised transactions with their card issuer.

In India, financial institutions and payment platforms offer two types of virtual accounts.&nbsp;

These virtual accounts are linked to a real bank account established for sending and receiving payments in INR within India. Similar to how each domestic bank account has a unique account number, domestic virtual accounts are assigned randomly generated virtual account numbers (VANs).

These accounts are commonly used for various tasks such as corporate banking, payment processing, cash management, and receivables management within the domestic market.

International virtual accounts are created to execute cross-border transactions in foreign currencies. These virtual accounts are associated with international bank accounts and are assigned&nbsp;&nbsp;<a href="https://multipass.co/help-centre/knowledge-base/virtual-iban-what-is-it-and-do-you-need-it-for-your-business">randomly generated vIBANs.&nbsp;</a>

In India, only a handful of financial institutions and payment platforms offer international virtual accounts separately, allowing businesses to manage funds and conduct transactions globally.&nbsp;

International virtual accounts often support multi-currency functionalities, enabling businesses to send and receive payments in various currencies without the need for multiple physical bank accounts in different countr

Advantages of International Virtual Accounts

Here are the advantages of international virtual accounts.

Cross-border transactions involve a high risk of financial fraud and data breach. Virtual accounts mitigate this risk by offering advanced security measures such as multi-factor authentication, encryption, and fraud detection systems.

International virtual accounts create different and temporary VANs for every transaction, separate from the customer's actual card number. Hence, even if a VAN is compromised, it cannot be used for additional transactions beyond the specified purpose. vIBANs also reduce the risk of sensitive information exposure in case of data breaches.

International virtual accounts can reduce compliance burdens associated with cross-border transactions by automatically generating FIRA certificates for each transaction.&nbsp;

By opening an international virtual bank account, businesses can receive payments in multiple currencies and through different modes such as SWIFT or bank transfer.&nbsp;

Virtual accounts allow seamless payment conciliation and account monitoring from a single platform or dashboard by creating a unique VAN for each transaction.

Cost Efficiency and Reduced Transaction Fees&nbsp;

By consolidating international banking activities through virtual platforms, international virtual accounts reduce transaction fees associated with traditional cross-border banking services, such as wire transfers and foreign exchange transactions.&nbsp;

Many payment platforms charge high fees for cross-border transactions. With an international virtual account, businesses pay a fixed rate for each cross-border transaction instead of paying a small percentage of the transaction amount every time.

Moreover, international virtual accounts often provide competitive exchange rates and lower overhead costs compared to traditional banking services, resulting in overall cost savings for businesses engaged in global commerce.

Choosing the Right Platform for Your Needs

With multiple payment platforms available in the market, it can be difficult to choose the right one. Here are some factors to consider while choosing an ideal payment platform to open an international virtual account:&nbsp;

Begin by clearly defining your business requirements, such as the currencies you need to transact in, the volume and frequency of transactions, and the level of security and compliance needed. Analyse and compare various payment platforms and narrow down the ones that fulfil your business needs.&nbsp;

Look for platforms that offer robust security measures such as encryption, multi-factor authentication, fraud detection, and compliance with industry standards and regulations such as PCI DSS and GDPR.

Evaluate the user experience and interface of the virtual account platform to ensure it is intuitive, user-friendly, and easy to navigate.

Most financial institutions in India offer domestic virtual accounts with VANs. However, for cross-border transactions, choose payment platforms offering international virtual accounts with a vIBAN facility, such as Skydo.&nbsp;

How Can A Business Benefit From Setting Up an International Virtual Account?&nbsp;

International virtual accounts can help businesses streamline their cross-border transactions. Let’s consider the example of LookUp Education, an ed-tech firm that offers online educational courses to students residing abroad. Instead of setting up different international bank accounts in multiple countries, LookUp opens virtual bank accounts to receive payments easily. Here is how setting up an <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts">international virtual account</a> benefits the business.

Now, instead of converting the amount to INR and holding it in its domestic bank account, LookUp can pay its foreign vendors or refund fees to students from its international virtual bank account. This reduces transaction costs and conversion fees and optimises cash flow, resulting in overall cost efficiency. LookUp Education can also comply with regulatory requirements related to cross-border transactions, financial reporting, and data privacy.

Documentation Required For Creating An International Virtual Account&nbsp;

Here are the documents you will require to complete your KYC and <a href="https://www.skydo.com/blog/set-up-your-freelance-international-bank-account-in-just-5-minutes?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">open an international virtual account</a> while following the above steps.

You can open an international virtual bank account within 5 minutes and get vIBAN quickly with <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a>, a modern cross-border payment platform. It offers transparent pricing, built-in invoicing, zero maintenance charges and full compliance with GST and automates <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA/FIRC</a> receipt generation.<a href="https://www.skydo.com/blog/how-to-receive-firc-from-your-bank?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">&nbsp;&nbsp;</a>

All you have to do is visit <a href="https://www.skydo.com/blog/why-skydo-is-your-trusted-international-payment-partner?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Skydo</a> today and sign up for an international virtual account for streamlined cross-border transactions.

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If you're a freelancer or a business owner working with international clients, you need an efficient and cost-effective payment processor for your global payments.

While <a href="https://www.paypal.com/in/home">PayPal</a> and <a href="https://stripe.com/in">Stripe</a> are popular payment solutions, they might not be the best fit for every business. Choosing the wrong payment gateway costs you money and your valuable time.

It's essential to be mindful of their drawbacks, including high transaction fees, substantial conversion charges, and regulatory complexities.&nbsp;

Despite their widespread usage, Stripe and PayPal charge high transaction fees, typically ranging from 1% to 4% of the transferred amount, in addition to currency conversion fees based on the payer's country. This complex fee structure poses challenges in accurately estimating overall costs beforehand.

Moreover, for Indian merchants, obtaining <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Foreign Inward Remittance Advice (FIRA)</a> documents from Stripe and PayPal can be cumbersome, often taking several days to process. These delays in FIRA document processing lead to transaction delays, causing frustration and potentially hindering business growth.

These collective factors can hinder your profitability and growth. Numerous users of these platforms for digital payments have reported experiencing payment delays.

Here are some excerpts from unsatisfied customers highlighting their experiences.

Skydo: A cost-effective and more efficient alternative

Skydo is a cutting-edge international payment processor designed to streamline international transactions, offering you the best value for your money. It's designed to empower you to expand your business globally stress-free.

Why you should choose Skydo for your international payments

Skydo charges a flat fee of 19 USD for transactions up to 2,000 USD and 29 USD for transactions above 2,000 up to 10,000 USD. That's it – no hidden charges, no percentage games.&nbsp;

Skydo uses real-time exchange rates, offering an entirely transparent pricing model. Unlike Stripe and PayPal, there are no processing fees or FX markups. You receive the maximum value of your online payment and know your cost before transferring funds.

With Skydo, you can <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">download all your FIRCs instantly</a> with just one click. It eliminates delays and ensures compliance.

We believe in complete transparency. With our <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">real-time tracking feature</a>, you can monitor the status of your funds anytime you want.&nbsp;

You can check, generate, and send invoices, reminders for recurring payments, and up-to-date ledgers.&nbsp;

Using efficient payment solutions like SWIFT and NEFT, Skydo ensures your funds move promptly and securely. You can expect the funds in your virtual bank account to reach your Indian bank account in 18-24 hours.&nbsp;

Our customers endorse us for our transparency.

“Skydo is a fintech platform which brings transparency, speed &amp; efficiency to B2B cross-border payments. We, at Primathon, recently started using it. We made a USD 50k net worth of transactions so far and the experience is just wow 😍 ! From the onboarding process to transactions, everything is as optimised as it could be with added transparency. Folks in the B2B industry should learn from them! Other fellow founders in the services industry, give them a shot!” - Sagar Patidar, Founder &amp; CEO, Primathon on <a href="https://www.linkedin.com/posts/sagarpatidar_fintech-b2bpayments-appreciation-activity-7086641698872672256-Kd6s?utm_source=share&amp;utm_medium=member_desktop">LinkedIn</a>.

Skydo emerges as the best alternative to Stripe and PayPal in cost, transparency, and speed. You also get free <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">online invoicing</a>, instant FIRC and custom payment reminders.

With its transparent pricing structure, Skydo stands out from other payment processing companies. You can <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">unlock substantial savings of up to Rs. 10 lakh per annum</a> with Skydo.

Focus on your business as Skydo takes care of your global payments. It is secure, efficient, affordable, and reliable.

<a href="https://www.skydo.com?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Start your free trial today</a> and grow globally with Skydo!

Disclaimer: Please note that the information provided is accurate as of February 2024.

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<a href="https://www.skydo.com/blog/sole-proprietorship-vs-freelancer?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">An entrepreneur</a> is a jack of all trades who must ensure that every aspect of the business runs smoothly, such as accepting <a href="https://www.skydo.com/blog/what-are-embedded-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">online payments</a> from customers without hassle.&nbsp;

Enter payment aggregators – the game-changers in simplifying the complexities of payment processing.

<a href="https://www.drishtiias.com/daily-updates/daily-news-analysis/payment-aggregators-1">Payment aggregators</a> are payment companies that work as third-party service providers to other companies to ensure their customers can pay online to buy products or services.&nbsp;

A payment aggregator example is when you visit an e-commerce platform and pay online without leaving the app. You can pay for the cart items because an online payment aggregator provides payment services to the e-commerce platform.&nbsp;

Payment aggregators in India work as intermediaries between merchants (businesses), their customers, and the financial institutions customers use to complete online payments.&nbsp;

As it is challenging for a business to partner with every Indian bank and NBFC, they onboard the services of a payment aggregator that serves as a middleman between the businesses, banks, and financial institutions.&nbsp;

Payment aggregators offer numerous payment services to <a href="https://www.skydo.com/blog/customer-journey-mapping-grow-it-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">businesses</a>, including debit cards, UPI, credit cards, no-cost EMIs, e-wallets, net banking, bank transfers, and e-mandates. Furthermore, they allow companies to internally pay various stakeholders, such as employees, suppliers, vendors, partners, and other authorities, for compliance.&nbsp;

With an online payment aggregator, <a href="https://worldline.com/en-ca/home/main-navigation/knowledge/knowledge-hub/blogs/what-is-a-payment-aggregator.html">here is how a payment gets processed</a>.

Here are some essential factors to consider before choosing a payment aggregator RBI for your business.

Benefits and Drawbacks of Using A Payment Aggregator&nbsp;

Using a payment aggregator offers several benefits for businesses.&nbsp;

Payment aggregators also provide convenient reporting and analytics tools, enabling businesses to track transaction data, monitor sales performance, and make data-driven decisions to optimise payment strategies.

However, there may be some drawbacks.&nbsp;

Payment aggregators offer businesses a convenient and efficient solution for processing online payments, streamlining operations, and enhancing the customer experience. However, analyse their benefits and drawbacks and compare them based on business-relevant factors to choose the best one for your business. 

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