How PayPal works in India

PayPal in India is used only for cross-border transactions, allowing you to receive international payments or make purchases from global websites, but not for domestic money transfers.

Personal PayPal accounts in India cannot receive money from friends, family, or clients. They are mainly for linking a debit or credit card to buy goods and services from international merchants that accept PayPal. Business accounts are intended for freelancers, exporters, and companies to collect payments from clients abroad using invoices or checkout features.

PayPal does not let you hold a balance or store foreign currency. Any money received from overseas is automatically converted to Indian Rupees and transferred to your linked Indian bank account, usually within 24 hours to 5 days. You must verify your PAN card and select a purpose code for each international payment, and PayPal provides a digital FIRA for your records.

• Conversion Fee: PayPal charges a currency conversion fee, typically about 3 percent above the base exchange rate.
• Transaction Fees: Additional international receiving fees may apply based on the sender’s country and currency.