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PayU vs Razorpay: which is better for international payments in 2026?

  • PayU is a domestic-first gateway with full RBI authorisation, but its international product is a card checkout, not a collections account — so B2B invoicing doesn't fit
  • Razorpay is easy for existing domestic users, with 1% flat pricing and zero FX markup, but the fee grows large as your invoices get bigger
  • Which one is better comes down to your priorities - fees, FIRA handling, and how your clients prefer to pay
Accept payment from 150+ countries
USD
Client pays
USD 100USD 100,000
1 USD = 85.00 INR
Live fx rate
You'll receiveINR
₹4,22,091
PayU
₹4,01,455
You lose:5.5%
Razorpay
₹4,19,985
You lose:1.2%
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Trusted by 40,000+ businesses
Over $1B processed • Licensed by RBI
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PayU vs Razorpay: understanding the key differences

Both PayU and Razorpay are well-known names for international payments, but they differ in who can use them from India, fees, export documentation like FIRA, GST compliance, settlement timelines, and support. Here is how they compare side by side.
FeaturesPayUrazorpay
Transfer fees3% on international cards (2% domestic)1% on bank transfers (cards 3%, wallets 3.5%)
Forex markup1.5-2.5% (anecdotal)Zero, live exchange rate
FIRANot documented publiclyAutomatic FIRA per transaction
eBRCNot documentedNot supported, closed on DGFT after your bank issues the IRM
GST-compliant invoiceNot publishedBuilt-in invoicing tool that is GST compliant
Settlement timeT+2 standard (domestic)1 business day
Customer supportIndia-based, ticket and emailIndia-based support
Best suited forConsumer checkout, recurring card billingLower-value invoices where 1% takes a smaller cut

PayU vs Razorpay: pricing and forex breakdown

Beyond the published fees, the real cost is what lands in your bank after fees, forex and GST. Move the slider to see what each one works out to, and how Skydo compares.
With Skydo, you receive₹8,47,091
Money transferUSD 10,000
$500$10K$100K$1M
PayU1.5-2.5% markup
₹8,02,910
Exchange rate83.30
Forex markup₹17,000
Card fee₹25,500
Fixed fee₹0
GST (18%)₹4,590
Total fees₹47,090
You receive₹8,02,910
razorpay0% markup
₹8,39,970
Exchange rate85.00
Forex markup₹0
Transfer fee₹8,500
Fixed fee₹0
GST (18%)₹1,530
Total fees₹10,030
You receive₹8,39,970

PayU vs Razorpay: compliance, payment rails, and platform comparison

PayU
  • FIRA handling is not documented publicly at all
  • No eBRC generation documented for exporters
  • No documented GST-compliant sales invoicing
  • Purpose code handling is not documented publicly
  • Card checkout only, and no bank transfer collections
razorpay
  • Generates a digital FIRA automatically for every transaction on the dashboard
  • No automated eBRC, you close it on the DGFT portal once your bank issues the IRM
  • Has a built-in invoicing tool that produces GST-compliant invoices
  • Leaves the purpose code to your AD bank at settlement, outside the payment flow
  • SOFTEX and EDPMS are handled separately, not by Razorpay

PayU vs Razorpay: which one is right for you

There is no single winner. The right pick depends on who pays you, how large your invoices are, and how much paperwork you can handle.
01PayU

Choose PayU if:

You want PayU's domestic reach and can absorb 3% plus a 1.5 to 2.5% forex markup on top.
  • Consumer e-commerce brand selling to buyers overseas
  • Ed-tech or SaaS business billing global customers by card
  • Business already running PayU for domestic payments
  • Seller who needs recurring card billing
02razorpay

Choose Razorpay if:

You want bank transfer rails and 1% pricing with zero markup, and value an India-first stack.
  • You are an exporter or freelancer who wants to be paid by local bank transfer, like ACH, SEPA, or SWIFT, rather than card
  • You want 1% with zero forex markup instead of a percentage-plus-markup structure
  • You want automatic per transaction FIRA generated on the dashboard
  • You already run on Razorpay's India stack and want gateway, payouts, and collections in one dashboard

Skydo: a better alternative to PayU and Razorpay

FeaturesPayUrazorpay
Settlement timeT+2 (domestic)1 business day24 hours
Forex markup1.5-2.5% (anecdotal)Zero, live rateZero, live rate
Transaction fee3% intl cards1% on transfers$19 up to $2k, $29 up to $10k, 0.3% aboveBest
FIRANot documentedAutomatic, per transactionFree, instant, per payment
eBRC and EDPMSNot documentedNot supported, handled with your AD bankOne-click eBRC, EDPMS closure assistance
GST invoicingNot publishedBuilt in, GST compliantBuilt in, GST compliant
Customer supportIndia-based ticketsIndia-based supportIndia-based, on WhatsApp, call and email
Payment trackingDashboard reportsDashboard, payment statusAuto tracked, remittance to bank deposit
RBI authorisationFull PA aggregation (2025)Full PA-CB (Dec 2025)Full PA-CB authorized
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See what our clients say about us

100+ reviews
Trusted by 40,000+ businesses
Shashank
“I'm looking for straightforward, transparent pricing. With most payment providers, it's hard to understand the actual fees and exchange rates, making it difficult to know what I'm really paying.”ShashankCEO, HCODE

Frequently asked questions

Which is better, PayU or Razorpay, for international payments in 2026?+
It comes down to how your clients pay you and how much compliance you want handled. PayU is a domestic-first gateway with full RBI authorisation, but its international product is a card checkout, not a collections account — B2B invoicing does not fit. Razorpay handles international bank transfers at 1% with zero FX markup and automatic FIRA, though the percentage fee grows with invoice size. PayU suits consumer checkout and recurring card billing, while Razorpay suits lower-value invoices and existing Razorpay users.
Is PayU cheaper than Razorpay?+
Usually not. PayU lists 3% for international cards, with an anecdotal 1.5 to 2.5% forex markup on top, landing near 5% all in. Razorpay charges 1% plus GST on international bank transfers with zero forex markup, roughly 1.2% all in. Razorpay is generally cheaper, though what actually lands in your bank depends on invoice size.
Which provides better exchange rates, PayU or Razorpay?+
Razorpay. PayU carries an anecdotal 1.5 to 2.5% forex markup on top of the card MDR, while Razorpay converts at the live exchange rate with zero markup.
Do PayU and Razorpay provide FIRA for Indian exporters?+
PayU does not document FIRA provision publicly for exporters. Razorpay generates a digital FIRA automatically for every transaction. For GST refunds and export compliance an instant per-payment FIRA matters — Skydo issues one free with every payment.
Are PayU and Razorpay RBI-approved for receiving payments in India?+
PayU holds full RBI authorisation across online, offline and cross-border payment aggregation (2025). Razorpay holds full PA-CB authorisation (Dec 2025) alongside its PA licence.
Is PayU or Razorpay better for freelancers or businesses?+
Consumer e-commerce brands selling to overseas buyers at checkout lean towards PayU. Exporters who want bank-transfer rails at a low percentage fee, or who already run on Razorpay's India stack, lean towards Razorpay.
Is there a better alternative to PayU and Razorpay for receiving money in India?+
Skydo is built for Indian exporters and freelancers. It charges a flat fee ($19 up to $2k, $29 up to $10k, 0.3% above) that works out cheaper than a percentage fee as invoices grow, with zero forex markup, instant FIRA on every payment, one-click eBRC and EDPMS closure assistance, built-in GST-compliant invoicing, full RBI PA-CB authorisation, and India-based support.

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