Does PayPal charge interest

PayPal does not charge interest on standard transaction fees, but it does apply interest to certain credit-based products. If you use PayPal Credit or PayPal Working Capital, interest or fixed fees will apply depending on the repayment terms you choose. For regular international payments, PayPal charges a currency conversion markup and transaction fees rather than interest, though these can add up significantly for Indian exporters and freelancers receiving payments from abroad.

If you want to avoid high fees altogether, platforms like Skydo offer a more transparent alternative. As an RBI-authorised cross-border payments solution, Skydo provides faster settlements and lower costs compared to PayPal pricing, making it a smarter choice for receiving international payments in India without hidden charges or interest.