Top 5 PayPal India Alternatives for International Payments
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 4.4% transaction fee, a USD 0.30 flat fee, and a 4% markup on the exchange rate, which can add up while receiving cross-border payments. Given the steep fee, you might want to consider a few PayPal India alternatives.
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 15th of the subsequent month.
That said, while PayPal is known for its convenience, there are some concerns about the quality of its customer support, including a lack of training and long wait times.
Here’s a snapshot of PayPal India’s offerings, pricing, and a rundown of its pros and cons
| Who is it for? | For businesses, freelancers and individuals worldwide |
| Pricing | 4.4% Transaction fee + 0.3USD flat fee + 4% markup on exchange rate |
| Compliance | Monthly FIRA provided |
| Additional features | E-commerce integration, invoicing, international money transfers, credit/debit card services and more |
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
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 transparency in their communication.
| Who is it for? | For businesses and freelancers worldwide |
| Pricing | 4.3% transaction fee + 2% currency conversion fee |
| Compliance | FIRA not provided |
| Additional features | Comprehensive suite to manage subscriptions, payments, taxes, and accounting all in one place. |
Things to note about Stripe
Multiple Currency Support: With Stripe businesses can receive international payments in over 135 currencies
Big Suite of Payment Solutions: Beyond facilitating international transfers, Stripe offers a whole suite of payment solutions like invoice management, subscription management, fraud detection and more.
Flexibility: Stripe provides the flexibility to generate instant payment links or embed its checkout solution directly on your website, supporting both one-time and recurring transactions.
Ease of Use: Businesses praise how simple it is to embed Stripe on their websites and appreciate features like subscription management and invoicing.
Invite only in India: Stripe operates on an 'invite-only' basis in India, requiring new businesses to request approval. The timeline for approval is unclear, and Stripe currently supports only a limited number of businesses.
Card Support in India only: While Stripe supports a variety of payment methods globally, Indian businesses are limited to accepting international payments via cards.
Stripe Charges: Stripe India charges a 4.3% processing fee per successful transaction. Additionally, there’s a 2% currency conversion fee for payments in foreign currencies.
No FIRA provided: Stripe doesn't offer FIRA for international payments in India, making compliance difficult for businesses.
Skydo
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.
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.
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.
| Who is it for? | Businesses and freelancers in India |
| Pricing | Live forex rate with USD 19 for transfers up to USD 2,000, and USD 29 for transfers between USD 2,000 and USD 10,000. |
| Compliance | Instant and free FIRA after every transfer |
| Additional features | Payment tracking, invoice generation, analytics and more |
Things to Note about Skydo
- Live Forex Rates: Skydo converts payments at live forex rates without any markups or currency conversion fees, unlike Stripe, which charges a 2% conversion fee.
- Transparent and Affordable Fees: Skydo offers a flat fee structure: $19 for payments under $2,000 $29 for payments between $2,001 and $10,000 and 0.3% for payments over $ 10,000. No monthly fees, no hidden costs—just clear and simple pricing.
- Instant and Free FIRA: Unlike Stripe, Skydo provides instant and free FIRA for every transaction, ensuring compliance with RBI regulations and simplifying the process for businesses.
- Dedicated Local Support: Skydo stands out with its India-based customer support, offering personalized assistance during onboarding and throughout your journey.
- Inward Payments Only: Skydo currently supports only inward remittances, so it cannot be used to send money abroad.
- Less Optimal for Small Payments: For transactions under USD 2000, where clients often prefer to use credit cards, Skydo may not be the most convenient option.
Payoneer
Founded in 2005, Payoneer 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 Amazon and Walmart
In terms of fees, Payoneer offers free account setup, but transaction fees apply: Payoneer-to-Payoneer payments are free, credit card payments incur a 3.2% + $0.49 fee, ACH Bank Debits (US) cost 1%, and virtual account payments are free for EUR/GBP but up to 1% for USD. Withdrawals to local bank accounts attract up to a 3% fee for different currencies. Extra charges like bank or intermediary fees may apply. An annual fee 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, users have expressed dissatisfaction with Payoneer's customer support which some have found to be virtually non-existent.
| Who is it for? | For businesses and freelancers worldwide |
| Pricing | 1-3% transaction fee for credit card and ACH bank debit + 2% markup on the exchange rate + USD 29.95 annual account fee for 12 months of inactivity |
| Compliance | Digital FIRA provided |
| Additional Features | Unsatisfactory customer support |
Things to Note About Payoneer
- Virtual Accounts in Multiple Currencies: Payoneer offers virtual accounts in USD, EUR, GBP, and more, making it easy to receive payments from clients worldwide.
- Free Digital FIRAs: Indian users benefit from free digital FIRAs, simplifying compliance for cross-border transactions.
- Marketplace Integrations: Seamlessly integrates with major platforms like, Walmart, Upwork, and Fiverr, making it ideal for e-commerce sellers and freelancers.
- Fee Structure: Credit Card Payments: 3.2% + $0.49 | ACH Bank Debits (US): 1% | Bank Withdrawals in INR: Up to 3% fee for currency conversion | Forex Markup: Additional 1-2% forex markup on top of other fees | Annual Fee: USD 29.90 if you receive less than USD 2,000 in 12 months
Wise
Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries. Initially a peer-to-peer remittance service, Wise now offers multi-currency accounts for both individuals and businesses.
Wise is known for using the mid-market foreign exchange rate with no markups. It charges a conversion fee depending on the currency used. Broadly speaking, it is around 1-2% of the transfer value.
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 user-friendly interface and efficient money transfer services, some users have noted that customer support can occasionally fall short in addressing and resolving issues effectively.
Here’s a quick overview of Wise’s offerings, pricing, and its pros and cons:
| Who is it for? | For businesses, freelancers and individuals worldwide |
| Pricing | Transaction fee depending upon currency + additional fee for digital FIRA |
| Compliance | FIRC not available in P2P offering. In business offering, eFIRC is available at an additional cost |
| Additional features | Debit/expense card for use in 175+ nations |
Things to note about Wise Business
- Mid-Market Exchange Rates: Wise offers mid-market exchange rates with no hidden markups, ensuring you get the fairest possible conversion rates.
- Digital FIRA at additional Cost: Wise Business issues a digital FIRA for every transaction, but it charges $2.50 or equivalent for each FIRA
- User-Friendly Interface: Wise is praised for its easy-to-use and intuitive platform, making it simple for both freelancers and businesses to manage cross-border payments.
- Wise Fees: Wise’s fees typically range from 1.6% to 1.8% of the transaction value. For example, a payment of USD 10,000 would incur a fee of around USD 164.90.
- Payment Limit: Users can request up to $10,000/invoice via Wise Business
Ping Pong
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 onboarding process cumbersome.
| Who is it for? | For businesses, freelancers and e-commerce sellers |
| Pricing | 1% transaction fee + possible forex markup |
| Compliance | Digital FIRA provided |
| Additional features | Businesses can pay VAT/GST and other taxes at no additional costs |
Things to Note about PingPong:
Virtual International account: Ping Pong too provides virtual international accounts in multiple regions
Partnership with leading e-commerce platforms: PingPong has integrated with many e-commerce platforms, including Walmart, Shopify and more.
Integrated Tax Payment: Ping Pong lets users pay VAT/GST and other taxes with no additional costs.
Digital FIRA: Ping Pong offers digital FIRA for international payments at no additional cost.
PingPong Charges: PingPong charges a 1% transaction fee, so for a payment of 10,000 USD, the transaction fee would be 100 USD.
Exchange Rate Transparency: PingPong’s exact forex rate is not publicly detailed, which means there may be differences compared to the mid-market rate.
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 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.
Is there a better alternative for PayPal?
PayPal is a leading global payment provider, but there are alternatives based on your needs. For receiving international payments in India, consider options like Skydo, Stripe, and Wise
What are PayPal charges in India?
Are there PayPal alternatives for freelancers?
Who are the top PayPal competitors?
