How to Receive International Payments in India

Receiving cross-border payments from your international clients doesn't necessarily have to be complex. To receive international payments in India, you can use methods such as bank wire transfers, global payment gateways (PayPal/Razorpay), or virtual international accounts ( provided by platforms like Skydo), depending on cost, speed, and convenience.

In this blog, we go on to break down each method, compare fees, timelines, and real-world use cases, so you can choose the best solution for your business. (Updated for 2025)

Methods to Receive Foreign Payments (USD/EUR) in India.

Here are the main ways to receive payments from abroad  in India

Before deciding on your preferred way, it is important to evaluate each method on parameters like timeline, fees, etc to find out which fits your needs the best. So let's understand these parameters in some detail:

How to Receive International Payments in India: Step-by-Step

Things to Note Before Receiving International Payments in India

Unfortunately, cross-border money transfers, especially payments, aren’t as straightforward as domestic ones. Different countries have different regulations, and multiple financial institutions are involved in the process as well.

So here are a few things to watch out for before receiving payments from abroad:

Timelines

In India, we’ve become accustomed to instant payments thanks to UPI, just a quick scan, and it's done. However, international payments are a different story, and the settlement time primarily depends on the payment mode.

For example, banks may take upto 7 business days to settle your payment, while international virtual accounts can do it within 48 hours.

Compliance

International payments often undergo strict scrutiny due to concerns around money laundering and terror financing. Hence, when choosing your international payment platform, check if it is approved by the RBI, provides FIRA and has the necessary security certifications.

For example, In January 2025, Skydo received in-principle authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB) entity, ensuring the highest level of compliance and security.

Charges 

Charges are one of the key factors when deciding on how to receive international payments in India. You need to be aware of the fees associated with each payment platform and make sure there are no hidden fees that are sneaking in.

For example, most platforms, including banks, apply a markup on the ongoing exchange rate. If the actual rate is 1 USD = ₹84, banks might offer ₹82, with the small difference adding up over multiple transactions.

Similarly, platforms like PayPal apply a currency conversion fee of around 4%, along with a transaction fee of 4.4% plus a fixed component. These charges can add up, especially for frequent or high-value payments.

While such fees are standard across many international payment providers, understanding the breakdown helps you compare options and choose the most cost-effective method for your business needs.

Do I Have to Pay Tax on International Payments in India?

Exports in India are considered zero-rated supplies, meaning you don't have to pay GST on your export income if you receive your payment in foreign currency. 

However, note that regardless of whether you receive a salary from an overseas employer or payments from foreign clients as a freelancer or business, your income will be taxed in India based on the applicable income tax slab rates.

 Best Way to Receive International Payment in India

There’s no one-size-fits-all answer to the question of how to receive international payments in India, it all depends on what matters most to you. Whether it’s faster settlement, favourable exchange rates, easy compliance, or other factors, the right option will vary. 

In this section, we’ll break down the different payment methods based on these key parameters to help you decide which is the best way to receive international payments in India. 

Banks

Banks are often the traditional answer to the question of how to receive international payments in India, and online banking has made money transfer services more convenient as well.

 However, here are a few things that you need to know before deciding if banks are the right fit for you to receive international payments:

Timelines

International bank wire transfers can take upto 5 business days or even longer due to reasons like multiple intermediary banks, bank holidays, incorrect details etc. 

Compliance

Banks issue FIRA for every foreign payment, but it is not a default or free service. You have to follow up with your bank to get your FIRA and banks often levy a fee for the same. Axis Bank, for example, charges INR 250 for every FIRA and an additional INR 100 for a duplicate FIRA.

Charges

Bank fees for international payments include a SWIFT fee, which, while levied on the sender, is often passed on to the receiver. It might cost your client anywhere around USD 15-50 to send the international payment and more often than not, it will be passed on to you.

Further, as we've mentioned, banks mostly levy a forex markup, giving you a lower exchange rate than the market exchange rate. Let’s say you receive $5,000, and the real exchange rate is 1 USD = ₹84, so you expect ₹420,000. Instead, the bank offers a lower rate of ₹82 per USD, leaving you with ₹410,000, a loss of ₹10,000 on just one transaction. 

Beyond SWIFT and forex fees, banks tend to charge extra fees for various services. For example, Axis Bank charges ₹250 for issuing a FIRA and ₹500 to track SWIFT payments.

Payment Gateways like PayPal, Razorpay

If you’re running an online business, especially in e-commerce, payment gateways can make receiving money from abroad a lot simpler. They let your international customers pay using cards, wallets, or whatever method works best for them. In this section, we’ll walk you through two popular options, PayPal and Razorpay, and break down how they work, how long payments take, what they charge, and what to keep in mind.

PayPal

Timelines

If your client pays you via PayPal, the amount appears in your PayPal account almost instantly, but it can take up to 5 business days to reach your bank account.

Compliance

PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the 15th of the subsequent month.

Charges

PayPal fees for receiving international payments include a 4.40% transaction fee, plus a fixed fee depending on the currency of the transaction, along with 4% currency conversion fee to the prevailing exchange rate. For example, if the current market rate is INR 84 per USD, PayPal’s effective exchange rate would be 4% less, which is INR 80.64.

Razorpay

Timelines

Razorpay typically settles international payments within 1 business day, making it a quick option for businesses that need faster access to funds.

Compliance

They provide FIRA (Foreign Inward Remittance Advice) to help meet compliance requirements, something that’s especially useful for exporters and service providers.

Charges

Razorpay charges a platform fee of 3% per international transaction, plus applicable taxes.

Virtual International Bank Accounts 

New-age fintech platforms like Skydo, Wise, and Payoneer are making cross-border payments seamless with international virtual accounts. These platforms provide users with virtual bank accounts in countries like the US, UK, and Australia. Clients in these countries can send payments to these virtual accounts as local transfers, avoiding the hassle and cost of international transfers.

The platforms then consolidate these local payments and transfer them to the recipient’s personal bank account.  Let's explore whether virtual accounts could be the answer to how to receive international payments in India.

Timelines

Once the payment hits your virtual account, it’s quickly transferred to your personal bank account. For example, Wise deposits funds within 0-2 business days, while Payoneer and Skydo mostly settle payments within 24-48hours, all much faster than traditional bank transfers..

Compliance

Most platforms offering international virtual accounts in India also provide FIRA to their users. While Wise charges a fee for issuing FIRA, both Payoneer and Skydo offer it free and instantly, making the process smoother and more convenient for users.

Charges

Since virtual bank accounts skip SWIFT transfers, no SWIFT fees apply. However, each platform has its own charges:

Payoneer:

For a detailed breakdown, check Payoneer’s fees here.

Wise:

You can read more about Wise’s pricing right here. 

Skydo:

Remittance Platforms like Wise and Western Union

P2P transfer services like Wise and Western Union let individuals abroad send money directly to Indian bank accounts, with conversion at competitive rates and delivery usually within a day. Wise supports multiple currencies and offers transparent fees, while Western Union provides both bank transfers and cash pickup options at thousands of locations. These services are best for personal remittances, not business payments, due to compliance and documentation limits.

Google Pay UPI

Google Pay, through its partnership with international money transfer services like Wise and Western Union, now allows users in India to receive cross-border transfers directly into their bank accounts using UPI.  While convenient for individuals, this option isn’t designed for business payments or freelancers, and transaction limits may apply as per RBI guidelines.

Which platform should you choose to receive international payments in India?

If you’re a large business handling high volumes of cross-border payments, banks might be the answer to how to receive international payments in India. They often offer competitive exchange rates and personalized services that smaller clients might not receive.

Many businesses and freelancers also prefer PayPal for its global credibility and acceptance, offering a payment option their international clients are familiar with.

For individual freelancers and small to medium businesses, international virtual accounts are often the most practical choice. These fintech platforms provide a seamless payment experience without the hassle of dealing with banks. By bypassing the SWIFT network, they eliminate SWIFT fees and typically offer faster settlements. Many platforms also include FIRA to simplify compliance. However, before deciding on how to receive international payments in India, carefully review their fees, foreign currency conversion rates, and customer support to ensure they meet your needs.

Here's a quick comparison chart to help you decide the best way to accept international payments in India based on your needs:

Take Rohan, a freelancer in India who regularly invoices clients in the US and UK. For his $5,000 project payment, platforms like Skydo allow him to receive funds quickly, with zero hidden forex markups and instant access to FIRA, meaning he keeps more of what he earns, and compliance is hassle-free. This transparency and speed are ideal for freelancers and small businesses managing frequent, mid-sized payments from abroad.

On the other hand, for large enterprises handling high-value transactions, often in the hundreds of thousands, traditional banks, with their dedicated relationship managers and tailored corporate solutions, can sometimes offer negotiated rates or advanced treasury services better suited to those needs.

In short, while platforms like Skydo are a game-changer for small businesses and freelancers, banks may still be preferable for companies with very large, complex payment volumes.

Accept International Payments in India with Skydo?

While there are several ways to receive international payments in India, virtual bank accounts are quickly becoming the preferred option for businesses and freelancers due to their simplicity and affordability. With Skydo, setting up an international account takes just five minutes, helping you easily do business in markets like the US, Europe, Singapore, and Australia.

Skydo streamlines your payments by offering live Forex rates with no hidden fees or currency markups. Take the example of Ashutosh, a developer who saved significantly with Skydo, as compared to receiving his payments via banks

Further, to keep things hassle-free and compliant with RBI regulations, you’ll get instant FIRA downloads after every transaction. Plus, each user benefits from a dedicated representative who’s ready to provide guidance and support whenever you need it.

If you're looking to avoid high fees on international transfers and make your foreign payments seamless and compliant, Skydo is the perfect solution!