Does PayPal convert currency

Yes, PayPal does convert currency automatically when you receive international payments, but it applies its own exchange rate with a markup that typically ranges from 3% to 4% above the mid-market rate, plus transaction fees. This means you may lose a significant portion of your earnings to conversion costs, and the rates are often less transparent than dedicated cross-border platforms.

If you're an Indian exporter or freelancer looking for better rates and faster transfers, platforms like Skydo offer a more cost-effective alternative. You can review a detailed PayPal overview to understand how it stacks up against RBI-authorised solutions that provide competitive forex rates, lower fees, and direct INR deposits into your Indian account, helping you retain more of what you earn from international clients.