How does PayPal work internationally
PayPal works internationally by moving money between PayPal accounts in more than 200 countries and automatically converting between its roughly 25 supported currencies when needed.
- Enter recipient details: In the PayPal website or app, open Send and Request and add the recipient's name, email address, mobile number or PayPal handle.
- Choose amount and currency: Enter how much to send and the currency the recipient should get, and PayPal shows the conversion rate it will apply.
- Fund the payment: Pay using your PayPal balance, a linked bank account, or a debit or credit card.
- Currency conversion: When the two currencies differ, PayPal converts the money at the mid-market rate with a markup added on top.
- Delivery: The money usually reaches the recipient's PayPal wallet almost immediately, while withdrawing it to a local bank account can take 1 to 3 business days.
- Cross-border fees: International personal and business payments attract cross-border fees that vary with the sending and receiving countries.
- Card funding fee: Paying for a transfer with a credit or debit card adds a percentage-based fee.
- Overall cost: Reddit users often estimate that transaction charges and conversion spreads together come to about 4% of the payment.
In India, PayPal does not support domestic transfers. It serves only as a channel for freelancers, SaaS providers and exporters to receive payments from clients abroad. A PayPal overview for Indian users usually covers this inward-only setup.
To receive international payments through PayPal in India, you need to confirm your email address and identity, verify your PAN, link an Indian bank account and provide a valid purpose code so the payment can be tracked for regulatory purposes.