Why are PayPal fees so high in India

PayPal charges higher fees in India primarily because of currency conversion markups, cross-border transaction costs, and withdrawal charges to Indian bank accounts. When receiving international payments, PayPal applies a conversion spread on top of the mid-market rate, often adding 3% to 4% to the exchange, and then deducts a transaction fee that can range from 3% to 4.4% depending on the amount. Withdrawing funds to an Indian bank account incurs an additional flat fee. These layers compound quickly, making PayPal one of the more expensive options for Indian freelancers and exporters.

If you want a clearer breakdown of what you will actually pay, you can review PayPal pricing in detail and compare it with alternatives. Skydo, an RBI-authorised platform built for Indian exporters and freelancers, offers significantly lower fees, faster settlements, and transparent exchange rates, helping you keep more of what you earn without hidden conversion costs or withdrawal charges.