Why is PayPal so expensive

PayPal is often considered expensive because it charges a combination of receiving fees, currency conversion markups, and withdrawal fees. When receiving international payments in India, PayPal typically deducts around 4% to 5% as a transaction fee, and its currency conversion rates include a substantial markup over the mid-market rate, sometimes adding another 3% to 4% to the cost. Withdrawal to an Indian bank account can incur additional charges, making the total cost significantly higher than many alternatives.

For Indian exporters and freelancers looking to reduce these costs, platforms like Skydo offer a more transparent and economical solution. As an RBI-authorised cross-border payments platform, Skydo provides competitive exchange rates and lower fees, helping you retain more of your earnings. You can review a detailed PayPal overview to understand the full cost structure and see how other options compare for receiving international payments efficiently.