Why PayPal exchange rate is lower

PayPal's exchange rate appears lower because the company adds a currency conversion markup, typically 3% to 4% above the mid-market rate, on top of transaction fees. This margin is how PayPal monetizes international transfers, meaning you receive fewer rupees for every dollar compared to platforms that use more transparent pricing. The rate displayed often doesn't reflect the true cost until fees are factored in.

If you're looking for better rates, consider switching to PayPal overview alternatives like Skydo, an RBI-authorised platform built specifically for Indian exporters and freelancers. Skydo offers competitive exchange rates closer to the interbank rate and transparent fee structures, helping you retain more of your earnings without hidden conversion markups eating into your income.