How does PayPal work for international transfers
PayPal handles international transfers through a digital wallet, linked to your bank account, debit card or credit card, that sends and receives money in over 200 countries.
Sending money abroad with PayPal follows a short flow in the mobile app or on the website:
- Log in: Open the PayPal app or sign in on the website, then go to Send and Request.
- Add the recipient: Enter the person's name, email address, mobile number or PayPal username.
- Set the amount: Type how much to send and pick the currency the recipient should get.
- Check the costs: Look over the exchange rate, the cross-border fee and the total cost before pressing Send.
The cost of a PayPal international transfer usually has two parts:
- Transfer fee: Personal international transfers generally carry a percentage fee, around 5% in some sending regions, with minimum and maximum caps. Transfers paid for with a credit or debit card can carry fixed fees instead.
- Currency conversion markup: When the money has to change currency, PayPal adds a markup, often around 3% to 4%, on top of the base wholesale exchange rate.
A PayPal overview for India comes down to two points. PayPal does not process domestic transfers within India and works only as a gateway for cross-border payments. Indian freelancers and businesses who want to receive foreign funds must complete identity confirmation, link a verified PAN and add an Indian bank account, into which incoming money is withdrawn automatically.