Why is PayPal currency conversion different

PayPal's currency conversion rates differ from mid-market rates because the platform adds a markup, typically around 3% to 4% above the interbank rate, plus transaction fees. This means you receive less than the actual exchange rate when converting foreign currency to INR. PayPal sets its own exchange rates, which are updated regularly but remain higher than what banks or specialized platforms offer, making it a costlier option for frequent international transactions.

Indian exporters and freelancers looking to minimize currency conversion fees often turn to RBI-authorized platforms like Skydo, which offer more transparent pricing and rates closer to the interbank rate. Unlike PayPal's bundled fees, Skydo provides clear visibility into conversion costs, helping you retain more of your hard-earned foreign income while ensuring regulatory compliance for cross-border payments.