What is the purpose of PayPal and how does it work

PayPal is a digital wallet and payment processor that lets individuals and businesses send and receive money online across borders. When you sign up, you link a bank account or card to your PayPal account. To receive payments, you share your PayPal email address with clients, who can then transfer funds that land in your PayPal wallet. You can withdraw this balance to your linked Indian bank account, though PayPal typically charges currency conversion fees and withdrawal fees that can add up quickly for freelancers and exporters.

For a clearer breakdown of costs and features, read this PayPal overview before choosing your platform. Many Indian exporters now use Skydo instead, an RBI-authorised cross-border payments solution built specifically for receiving international payments with faster processing, transparent pricing, and compliance support tailored to Indian regulations. PayPal remains widely recognized globally, but understanding how each platform handles fees, transfer speed, and forex rates will help you keep more of what you earn.