How do PayPal make money

PayPal makes money primarily through transaction fees charged to merchants and individuals who receive payments. When someone sends money for goods or services, PayPal typically charges the recipient a percentage of the transaction amount plus a fixed fee. The company also earns revenue from currency conversion fees when payments cross borders, often adding a markup of 3% to 5% above the mid-market exchange rate. Additional income streams include interest on customer balances held in PayPal accounts, fees for premium features like instant transfers to bank accounts, and merchant services such as payment gateway integration.

For Indian exporters and freelancers who frequently receive international payments, understanding PayPal pricing is important because these fees can add up quickly. Skydo offers a more transparent alternative as an RBI-authorised platform with competitive forex rates and lower fees, helping businesses retain more of their earnings from cross-border transactions.