Stripe vs PayPal for International Payments 2025
In today’s global economy, many Indian freelancers, SaaS startups, and exporters regularly receive payments from clients abroad. Choosing the right platform for international payments can make a big difference in costs and convenience. Two of the most popular options are Stripe and PayPal. Both enable cross-border transactions, but they work very differently. PayPal operates in 200+ countries and supports 25 currencies, whereas Stripe is available in 46 countries and supports 135+ currencies. This means PayPal has a broader geographic reach, while Stripe shines with its developer-friendly tools and multi-currency support.
In this guide, we’ll compare Stripe vs PayPal (and mention a few alternatives) on key factors like fees, payment methods, supported markets, and regulatory compliance (especially for Indian businesses). We’ll explain real costs, limitations, and use cases for each service. We’ll also introduce India-focused solutions like Skydo, which offers transparent fees, live forex rates and instant FIRA/GST compliance for payments. By the end, you’ll know which platform best fits your needs for international invoicing and payments.
Stripe vs PayPal: Key Differences at a Glance
While both Stripe and PayPal enable global payments, they serve very different use cases, especially for Indian businesses. Here's a quick overview of how they stack up on the fundamentals
| Stripe | Paypal | |
| Availability in India | Limited (Invite-only access for Indian businesses) | Open to all Indian businesses but certain features are limited |
| Currency Support | 135+ currencies | 25+ currencies |
| Payment Methods | Card, ACH, SEPA, Wallets, UPI (select markets) but card only for in India for global payments | Card, PayPal balance, UPI, Netbanking |
| Fees for global payments | 4.3% transaction fee +2% FX markup | 4.4% transaction fee + 4% fx markup + fixed fee varying across currencies |
| FIRA/Compliance in India | No FIRA provided | Monthly FIRA provided |
| Developer Tools | Advanced APIs, custom integrations, flexible billing | Limited customization, plug-and-play setup |
| Best For | SaaS companies, marketplaces, recurring billing, global product businesses | Freelancers, small businesses, e-commerce sellers |
Stripe is often preferred by tech-led companies that need developer flexibility and customised billing models. Its global infrastructure supports a wide range of currencies and payment methods, though availability in India is currently limited.
PayPal has long been the go-to for freelancers and e-commerce businesses due to its ease of use and global reach. It provides features like FIRA for Indian users and integrates easily with most client workflows.
💡 Today, platforms like Skydo are also becoming popular among Indian businesses, offering benefits like faster INR settlements, flat fees, and automated compliance support.
What is Stripe?
Stripe is a global payments platform designed to power internet businesses, from startups to enterprise companies. Headquartered in the U.S. and Ireland, Stripe supports over 135 currencies and is known for its developer-friendly APIs, which make it easy to build custom payment flows.
While Stripe has become the backbone of many SaaS companies and marketplaces worldwide, its availability in India is still limited. Business accounts in India are currently invite-only, and Stripe doesn’t issue Foreign Inward Remittance Advice (FIRA), which is a key document required by Indian exporters for GST and compliance purposes.
Key Features of Stripe:
- Accepts payments in 135+ currencies
- Offers recurring billing and invoicing features
- Supports custom checkout flows via APIs
- Strong focus on developer experience
- Advanced tools for fraud prevention and revenue recovery
Stripe is ideal for companies that need flexibility, scalability, and deep integration capabilities, especially those offering subscriptions, platforms, or global SaaS products.
🔖Not happy with Stripe? Learn about these Stripe alternatives.
What is PayPal?
PayPal is one of the world’s most recognised digital payment platforms. Originally designed to simplify peer-to-peer payments, it has evolved into a robust solution for freelancers, e-commerce sellers, and small businesses looking to receive payments globally.
PayPal allows Indian users to receive payments from international clients in major currencies like USD, GBP, and EUR. Once the funds arrive, they are automatically converted to INR and settled into your linked Indian bank account. PayPal also provides a digital Foreign Inward Remittance Advice (FIRA), which is essential for compliance in India.
Key Features of PayPal:
- Easy to set up and use, no developer expertise needed
- Accepted in over 200 countries
- Built-in buyer and seller protection
- FIRA available digitally for Indian users
- Strong integration with global marketplaces like Fiverr, Upwork, and eBay
PayPal is especially useful for freelancers, digital service providers, and small e-commerce sellers who prioritise ease of use and broad client acceptance.
🔖Not happy with PayPal? Learn about these PayPal alternatives.
Stripe vs PayPal: Fees & Pricing
When it comes to receiving international payments, both Stripe and PayPal have different pricing models, each with its own structure for transaction fees, currency conversion, and compliance.
Here’s a detailed breakdown:
| Fee type | Stripe | PayPal |
| International Transaction Fee | 4.3% (on international cards) | 4.4% + fixed fee (varies by currency) |
| Currency Conversion Fee | 2% markup over mid-market rate | 4% markup over mid-market rate |
| Total Effective Charges | Around 6.3% (all-inclusive) | Around 8.4% (all-inclusive) |
| FIRA Availability (India) | Not available | Available digitally |
| Withdrawal to Indian Bank | Manual (Stripe is invite-only in India) | Automatic (typically within 24–48 hours) |
| Monthly/Account Maintenance | None | None |
Example: Receiving $5,000 from an International Client
Let’s break down what happens when you receive $5,000 via Stripe and PayPal, assuming a mid-market exchange rate of ₹85/USD.
| Criteria | Stripe | Paypal |
| Amount Sent | $5,000 | $5,000 |
| Transaction Fee | 4.3% = $215 | 4.4% = $220 |
| Amount After Transaction Fee | $4,785 | $4,780 |
| Currency Conversion Markup | 2% → ₹83.3/USD | 4% → ₹81.6/USD |
| INR After Conversion | ₹398,455 | ₹390,048 |
| FIRA Charges (India) | Not available | Free digital FIRA |
| Final INR Received | ₹398,455 | ₹390,048 |
Summary:
- Stripe offers slightly more in final INR payout, but you’d have to manage compliance separately.
- PayPal automates more steps (like FIRA and bank transfer), but charges more in forex markup, which lowers your final amount.
If you're a freelancer or exporter receiving international payments regularly, platforms like Skydo offer mid-market exchange rates, no forex markup, and instant free FIRA, helping you retain more from every payment.
Cross-Border Features: Stripe vs PayPal for Indian Users
When it comes to international payments, businesses care about how fast they get paid, which currencies are supported, and how flexible the platform is in terms of payment methods and compliance.
Let’s look at how Stripe and PayPal compare for Indian freelancers and exporters:
Stripe
- Payment Methods (India): Currently, Stripe India primarily supports card payments (Visa, Mastercard) for receiving international payments. Payment links, invoicing, and embedded checkouts are also available for client invoicing globally.
- Currency Support: Accepts over 135 currencies, with automatic conversion to INR during settlement.
- Settlement Speed: Stripe generally takes 7–10 business days for first payments (due to compliance checks), and 2–5 days for subsequent payouts to Indian bank accounts.
- FIRA & Compliance: Stripe does not offer Foreign Inward Remittance Advice (FIRA), which may require Indian businesses to manually coordinate with banks for documentation, especially for GST or export benefits.
PayPal
- Payment Methods (India): Offers multiple options to international clients: credit/debit cards, PayPal balance, and linked bank accounts (ACH in the U.S.). This flexibility often makes it easier for clients to pay, especially in creative or consulting industries.
- Currency Support: Supports over 25 currencies and automatically converts to INR at the time of withdrawal.
- Settlement Speed: PayPal typically settles to Indian accounts within 1–3 business days after withdrawal is initiated.
- FIRA & Compliance: PayPal does provide a monthly consolidated FIRA, downloadable from the account dashboard, making it easier for Indian freelancers and exporters.
Use Cases: Who Should Use Stripe vs PayPal?
Both Stripe and PayPal are powerful platforms, but they’re built with different users in mind. Your choice depends on what you sell, where your clients are, and how you operate.
✅ Stripe: Best For Tech-Forward Businesses
Stripe is ideal for:
- SaaS companies with recurring subscriptions
- Startups that want a scalable payment infrastructure
- Developers who need deep integration and API flexibility
- Businesses selling globally via custom platforms
Why choose Stripe? If you’re building a product or marketplace that needs complete control over checkout, invoicing, and backend logic, Stripe’s developer-first ecosystem is unmatched. Think of Stripe as a “payments operating system” for modern businesses.
⚠️ However, Indian users should note:
- It’s invite-only in India and not available for all business types
- You’ll need external help (bank/FIRC agents) for compliance documents like FIRA
- Card-only acceptance may limit how easily clients can pay
✅ PayPal: Best For Freelancers & SMBs
PayPal is ideal for:
- Freelancers & consultants working with global clients
- Creative professionals (writers, designers, editors) invoicing individuals
- SMBs offering one-time services
- E-commerce sellers using marketplaces like Etsy or eBay
Why choose PayPal? It’s easy to use, widely trusted by clients, and doesn’t require any technical setup. Most international clients already have PayPal accounts, so you just share your email and get paid.
📎 What makes it freelancer-friendly:
- Clients can pay via PayPal balance, ACH, or cards
- You receive a monthly FIRA for compliance
- Faster onboarding with no code or dev work needed
| Business Type | Recommended Platform |
| SaaS / Recurring Billing | Stripe |
| Tech Startups | Stripe |
| Freelancers | PayPal |
| Consultants / Coaches | PayPal |
| E-commerce (Etsy/eBay) | PayPal (Stripe too in certain cases) |
| Custom Marketplaces | Stripe |
Stripe vs PayPal: Best Alternatives for Indian Businesses
If Stripe or PayPal don’t meet all your needs, especially for freelancers and exporters, these platforms offer better rates, local features, or simpler compliance:
Wise – Transparent FX & Global Reach
Wise uses the real mid-market rate with low fees (~0.6%–1.5%). Ideal for freelancers and small businesses.
- Local receiving accounts (USD, EUR, GBP, etc.)
- Supports 80+ countries
- Digital FIRA available
- Mid-market exchange rate without markup
Limitations:
- $10K invoice cap for Indian users
- Only supports freelancers and solopreneurs
- Paid FIRA
Payoneer – Great for Marketplace Payouts
Popular with Amazon, Fiverr, and Upwork sellers.
- Multi-currency accounts
- Free FIRA
- 3% card fees, ~2% forex markup
- $29.95/year if usage < $2,000
⚠️ Fees can add up depending on the method used.
Razorpay – Indian Gateway with Global Support
A strong choice for Indian tech businesses and exporters.
- Accepts payments in 100+ currencies via cards and wire transfers
- MoneySaver Exporter provides live mid-market forex rates
- Auto-generates digital FIRA for compliance
- Indian KYC & local support
Others
- Infinity: 0% forex markup, clean UI, new entrant.
- PingPong: Free FIRA, 1% flat fee, great for Amazon Europe sellers
Skydo – A Simpler, Smarter Alternative for Indian Businesses
If you're an Indian business receiving international payments, most platforms require trade-offs, either on fees, speed, or compliance support. Skydo takes a different approach by solving for all three in one platform, purpose-built for Indian exporters and freelancers.
Why Skydo Stands Out:
Beyond cost savings, Skydo offers practical features designed for Indian businesses:
- Local Virtual Accounts: Receive USD, EUR, GBP, AUD, and SGD via domestic methods like ACH and SEPA no SWIFT, no SWIFT charges.
- Live Exchange Rates: Transparent forex conversion with zero markup.
- Flat, Predictable Fees: $19 for payments < $2,000 $29 up to $10,000 0.3% beyond tha
- Instant FIRA generation for every transaction
- Quick 5-minute setup for global accounts in 10+ countries
- Real-time payment tracking
- Settlement within 24 hours
- India-based support team with dedicated representatives who understand local business needs, compliance requirements, and payment regulations
Here's how Skydo matches up to receive USD 5000, in this Stripe vs PayPal debate:
| Criteria | Stripe | Paypal | Skydo |
| Amount Sent | $5,000 | $5,000 | $5,000 |
| Transaction Fee | 4.3% = $215 | 4.4% = $220 | Flat $29 (~₹2,400) |
| Amount After Transaction Fee | $4,785 | $4,780 | $4,971 |
| Currency Conversion Markup | 2% → ₹83.3/USD | 4% → ₹81.6/USD | ₹85.0 (live mid-market) |
| INR After Conversion | ₹398,455 | ₹390,048 | ₹422,535 |
| FIRA Charges (India) | Not available | Free digital FIRA | Instant free FIRA |
| Final INR Received | ₹398,455 | ₹390,048 | ₹422,535 |
Conclusion: Choosing the Right Platform for Your International Payments
Both Stripe and PayPal have played vital roles in shaping the way businesses handle global payments. If you're a SaaS company or global startup looking for deep API integrations and subscription billing, Stripe may be a better fit. For freelancers and small businesses who rely on marketplace integrations and card payments, PayPal remains a convenient option.
However, for Indian businesses receiving payments from international clients, especially service exporters, agencies, and freelancers, neither may be optimised for your needs when it comes to cost, compliance, or speed.
This is where India-first platforms like Skydo, Razorpay MoneySaver Exporter, or Infinity are changing the game. They combine local support, real-time exchange rates, FIRA automation, and lower fees, tailored to how Indian businesses operate.
📌 TL;DR:
- Stripe = best for SaaS, global infra, advanced customizations
- PayPal = best for freelancers/marketplace sellers with global client base
- Skydo = best for Indian exporters who want savings, speed & compliance built-in
Want to try Skydo?
Is Stripe better than PayPal?
Neither is universally "better" - it depends on your needs. Stripe offers lower fees and better developer tools but requires technical expertise. PayPal provides a more straightforward setup and wider acceptance but charges higher fees.
Does Stripe work in India?
What are the disadvantages of Stripe?
Can I use PayPal instead of Stripe?
