How does PayPal work internationally

PayPal works internationally by allowing users to send and receive payments in multiple currencies across 200+ markets. When you receive an international payment, PayPal holds the funds in your account and you can either keep the balance in foreign currency or withdraw it to your linked bank account. For Indian freelancers and exporters, PayPal converts the funds using its own exchange rate (typically 3% to 4% above the mid-market rate) and charges a withdrawal fee when transferring money to an Indian bank, which can take 3 to 5 business days. You'll also need to comply with FEMA regulations and maintain proper documentation for inward remittances.

While PayPal offers convenience and brand recognition, platforms like Skydo provide a more cost-effective alternative for Indians receiving business payments from abroad. As an RBI-authorised cross-border payments platform, Skydo offers better exchange rates, lower fees, and faster transfers directly to your Indian bank account. You can review the PayPal overview to understand the complete fee structure and compare it with other options available for international payments.