Why PayPal conversion rate is low

PayPal's conversion rate appears low because the platform applies its own markup on top of the mid-market exchange rate, typically ranging from 3% to 4%. This means you receive fewer rupees per dollar, euro, or pound compared to platforms that offer rates closer to the actual interbank rate. Additionally, PayPal charges withdrawal fees when you transfer funds to your Indian bank account, further reducing the amount you ultimately receive. For a detailed breakdown, check out this PayPal overview that explains all associated costs.

Indian exporters and freelancers often find better value with Skydo, an RBI-authorised cross-border payments platform that offers competitive exchange rates without the heavy markups. Skydo typically provides rates much closer to the mid-market rate and transparent pricing, ensuring you keep more of what you earn from international clients.