PayU Overview: How It Works, Features & Reviews
A practical look at PayU for Indian exporters, freelancers, and agencies. PayU is a domestic gateway first. Its international product is a card checkout, not bank-transfer collections, and it costs 3% plus a forex markup on top.
RBI's PA-CB framework
AICPA SOC2 certified
ISO: 2022 CertifiedWhat Is PayU?
PayU is a Prosus-owned payments company operating across India, Latin America and Central Europe. In India it serves over 450,000 merchants and holds full RBI authorisation across online, offline and cross-border.
For Indian businesses, PayU offers international card acceptance on your own checkout page. Overseas customers pay by card, and PayU settles in rupees to your Indian bank account. There are no foreign currency receiving accounts, so a client cannot simply bank transfer you.
In India, PayU's international acceptance is mostly used by consumer e-commerce, ed-tech, SaaS and subscription businesses selling overseas.
How Does PayU Work?
PayU gives you a checkout page. Overseas customers pay by card in their currency, PayU settles in rupees.
Enable international
Acceptance is off by default and needs separate approval from PayU and its bank.
Customer pays by card
Overseas buyers pay on your checkout page in any supported currency.
Settle in rupees
Funds reach your Indian bank, standard cycle is T+2 days.
International acceptance is not switched on by default. PayU reviews the business case by case with its banking partners, then discusses pricing before enabling.
PayU holds full RBI authorisation across online, offline and cross-border. FIRA handling for exporters is not documented publicly, so confirm it before onboarding.
PayU Key Features
A quick look at the PayU features most relevant to Indian businesses selling overseas.
International cards
Accept Visa, Mastercard, Amex and Diners from overseas buyers online.
Multi-currency checkout
Show prices and collect payment in supported foreign currencies.
Cross-border import
Licensed PA-CB flow for overseas sellers billing Indian buyers.
Recurring and tokenised
Subscriptions and saved cards for SaaS and ed-tech.
Domestic rails
UPI, netbanking, RuPay and wallets under the same integration.
Payment links and invoices
Collect without a full website integration.
API and plugins
Documented APIs plus Shopify, WooCommerce and other plugins.
Fraud and risk
PCI DSS compliance, plus fraud screening and chargeback management.
Full RBI authorisation
Online, offline and cross-border payment aggregation.
PayU Pricing and Fees
PayU charges 3% for international card transactions plus GST. Anecdotally we have seen a forex markup of 1.5% to 2.5% on top of that, so confirm your own rate with PayU before you proceed. Here is a worked example vs Skydo.
On a $10,000 card payment, PayU costs roughly $450 to $550 once the 3% MDR and an FX markup of about 1.5% to 2.5% are added. Skydo charges a flat $29 with zero FX markup. That is a difference of over $420 on one payment.
PayU Pros and Cons
- Full RBI authorisation, online, offline and cross-border
- One of India's largest gateways, 450,000+ merchants
- Domestic and international under one integration
- Multi-currency checkout in 100+ currencies
- Recurring billing and card tokenisation
- No setup, onboarding or annual fee
- India-based support and account teams
- PCI DSS compliant with fraud tooling
- Card checkout only, no bank transfer collections
- No foreign currency receiving accounts at all
- 3% on international cards, against 2% domestic
- A forex markup of roughly 1.5% to 2.5% on top
- International acceptance needs separate approval
- Pricing is quoted case by case
- FIRA and eBRC not documented for exporters
- Built for consumer checkout, not B2B invoicing
PayU for Indian Freelancers and Exporters
PayU is built for domestic checkout, not for Indian exporters.
When PayU makes sense.
You sell to overseas consumers through a website or an app. You need recurring billing or saved cards for them. You already run PayU for all your domestic payments. You want one single integration covering India and abroad.
When PayU stops making sense.
Your clients pay you by bank transfer, not by card. You want a forex markup you can see rather than one you have to go and ask about. You need FIRA and eBRC handled as standard. You want a price you can check before you apply for it.
How Does Skydo Compare to PayU?
Here's a side-by-side look at PayU and Skydo across the things that actually matter for Indian exporters.
Transaction fee structure
3% intl cards
Flat $19 / $29 / 0.3%
FIRA
Not documented
Free, instant, per transaction
eBRC for Amazon sellers
Not documented
eBRC closure assistance
GST-compliant invoicing
Not published
Available on the dashboard
Settlement time
T+2 (domestic)
Within 24 hours
Hold foreign currency (India)
No foreign currency accounts at all
RBI prevents holding foreign currency
India-based support
India-based, ticket and email
Chat, Call and WhatsApp
RBI authorisation
Full PA aggregation (2025)
Full PA-CB licence
Best for
Consumer checkout, recurring card billing
Recurring B2B exports, $500-$100K invoices
Frequently Asked Questions About PayU
Is PayU available for businesses in India?
Yes, and PayU is one of the most established gateways in India. It holds full RBI authorisation across online, offline and cross-border payment aggregation, granted in 2025, and serves over 450,000 Indian merchants. International card acceptance is available, though it is not switched on by default and needs separate approval from PayU and its banking partners.
How much does PayU charge in India?
PayU charges 2% on domestic cards, netbanking and wallets, and 3% on international cards, Amex and Diners, with 18% GST on top. There is no setup, onboarding or annual fee. Anecdotally we have seen a forex markup of 1.5% to 2.5% on top of that, so confirm your own rate with PayU before you proceed.
Can I hold USD in my PayU account in India?
No. PayU settles in rupees to your Indian bank account and does not offer foreign currency receiving accounts or balances for Indian merchants. Overseas customers pay by card at your checkout in their own currency, and PayU converts. If you need USD account details a client can transfer to, PayU is not the right product.
Does PayU provide FIRA?
PayU does not document FIRA or FIRC handling for Indian exporters anywhere on its public pages. It holds full cross-border payment aggregator authorisation, so remittance documentation should exist, but the process, timing and cost are not published. Confirm this directly with PayU before onboarding if export documentation matters to you.
Is PayU safe to use in India?
Yes. PayU is PCI DSS compliant, is owned by the listed Prosus group, and in 2025 received integrated RBI authorisation covering online, offline and cross-border payment aggregation. That cross-border authorisation is a genuine strength and puts it ahead of several platforms that hold only in-principle approval or none at all.
What's the best PayU alternative for Indian freelancers?
It depends on how you get paid. If overseas customers pay by card on your website, PayU works well and pairs with your domestic setup. For direct B2B invoices, Skydo charges a flat $19 to $29 with zero forex markup, free instant FIRA and automated eBRC. Wise and Xflow are the other options.
Can I send money out of India with PayU?
PayU's licensed cross-border product is built mainly for the import direction, letting overseas sellers collect from Indian buyers and settle offshore in about three days. For an Indian merchant sending money out, PayU does not market an outward payout product, so treat outward remittance as a separate question to raise with them.
Should I use PayU or Skydo?
PayU suits consumer businesses taking card payments from overseas buyers, especially if you already run PayU domestically. Skydo suits direct B2B invoicing into India, with a flat $19 to $29 fee, zero forex markup, free instant per-transaction FIRA, automated eBRC and full RBI PA-CB authorisation.
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