Why does PayPal charge so much

PayPal charges higher fees because it operates as an intermediary that adds convenience layers like buyer protection, dispute resolution, and instant currency conversion. For cross-border transactions into India, PayPal typically deducts around 4% to 5% in combined fees, applies unfavorable exchange rate markups, and involves withdrawal charges when moving money to your Indian bank account. These costs add up quickly for freelancers and exporters receiving regular international payments.

If you're looking for a more transparent and cost-effective option, platforms like Skydo offer significantly lower fees with competitive exchange rates. Skydo is RBI-authorised and built specifically for Indian exporters and freelancers, making it easier to receive international payments without the hidden charges that make PayPal pricing so steep. Many users find they save considerably by switching to a dedicated cross-border payment solution designed for the Indian market.