How to Receive International Payments in India: A 2025 Guide for Freelancers & Businesses

Receiving payments from international clients or partners involves more steps than a domestic transfer. You’ll need the right payment channel, correct bank/payment details, proper compliance (purpose codes, invoices) and awareness of fees and taxes.

This 2025 guide covers all major methods,  from traditional bank wires to modern fintech platforms, and explains the process, costs, and paperwork involved. We’ll also highlight RBI-approved solutions like Skydo, which many exporters now use to cut fees and simplify compliance

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:

Step-by-Step Process to Receive an International Payment

Main Methods to Receive International Payments

Bank Wire Transfer (SWIFT).

The most traditional route is an international bank transfer. It requires giving your account number, IFSC and SWIFT/BIC code to the sender. Banks typically take 3–7 business days to settle an international transfer.

The sender pays a correspondent bank fee (often $15–50), which is usually passed on to you, the receiver. Banks also add a foreign-exchange markup: for example, on a $5,000 receipt with a true rate of ₹84/USD, you might only get ₹82/USD, losing thousands of rupees. Banks charge for paperwork too – e.g. issuing a FIRC can be ₹250 (Axis Bank) plus extra for duplicate FIRCs

In summary, SWIFT is universal and secure, but can be slow and expensive.

Online Payment Gateways (PayPal, Razorpay, etc.).

Gateways simplify online sales. For example, PayPal credits your PayPal wallet instantly once the customer pays, but moving money from PayPal to your Indian bank can take days.

PayPal levies high fees – typically 4.4% + 4% currency conversion of the transaction amounts. (Note: PayPal India stopped INR transactions in 2021, but still allows international receipts.) A domestic Indian gateway like Razorpay has added an international payout option: it settles within ~1 business day and provides digital FIRA, and charges about 3% per transaction (plus taxes)skydo.comskydo.co. Other gateways (PayU, 2Checkout, etc.) exist, and most have similar fees.

Gateways are convenient for online sales, but usually cost several per cent per payment.

Money Transfer Services (Western Union, etc.).

Money transfer services like Western Union are a long-standing option for receiving international payments, especially for smaller, one-off transfers. It allows individuals abroad to send money to recipients in India, either directly to a bank account or for cash pickup at a local Western Union agent location.

However, for business or freelancer payments, it may not be the most cost-effective or compliant route. Western Union typically includes service fees and less competitive exchange rates, which can eat into the final amount received. Additionally, it does not offer tools like FIRA generation or automated compliance required by many Indian businesses exporting services or goods.

Western Union can be convenient for personal use or emergency transfers, but for professional invoicing and frequent global payments, more specialised platforms may offer better pricing, speed, and documentation.

Virtual Multicurrency Accounts (Skydo, Wise Business, etc.).

New fintech platforms give you real local bank accounts in the US, UK, EU, etc., that consolidate payments and deposit to your Indian account. For example, you could have a US-dollar virtual account; your client wires to that account (as if it were US domestic), and the platform then transfers INR to you. Because these avoid the SWIFT network, they eliminate SWIFT fees and are much faster, often 1–2 business days total.

They also handle compliance: Wise and Skydo will provide an electronic FIRC for each transfer (Wise charges a small fee, whereas Payoneer and Skydo include it for free).

Typical fees: Wise charges around 1.5–2% (no markup). Payoneer's fee differs by payment method, and they charge a conversion fee of 3% on INR withdrawals. Skydo charges a flat fee (e.g. $19 for payments under $2,000, $29 for $2k–10k, and 0.3% above $10k) with true mid-market rates. 

In practice, many freelancers and exporters prefer these services. For instance, Skydo (now RBI-licensed) offers virtual foreign accounts for businesses, aiming to streamline collections and reduce forex charges. Overall, virtual accounts can be an efficient, lower-cost option for recurring international payments.

Important Compliance Points to note while Receiving Payments from abroad

Choosing the Right Option to get Paid

No single method fits everyone. Banks are reliable for large, one-time transfers (e.g. machinery export payments), but are slow and can be costly. Gateways like PayPal or Razorpay work well for online retailers and small recurring payments, yet carry 3–4% fees. Virtual accounts  (skydo/wise) offer better rates for freelancers or consultants, especially for frequent payments, by providing local accounts and fast conversion.

Many Indian freelancers and small exporters are now using fintech platforms. For example, Wise’s business accounts come with local USD/EUR/GBP details and low fees, and Skydo (an RBI-approved cross-border payment aggregator) offers virtual accounts with flat fees and no rate. These services typically settle within 1–2 days (much faster than banks and handle paperwork for you.

Before deciding, compare speed vs. cost: some banks waive fees if you’re willing to wait longer, whereas instant methods charge a premium. Also, check regulatory credentials – e.g., Skydo’s new RBI authorisation for cross-border payments shows it follows official compliance standards

In summary, identify what matters most: lowest fees, fastest clearance, or easiest compliance. If speed and cost are top priority, consider a virtual account provider. If you already use PayPal or your business has card sales, a gateway may suffice. For large exports, traditional banks might be unavoidable. By understanding each option’s timeline and charges (as outlined above), you can choose the solution that fits your business. Modern platforms like Skydo combine low Forex markup with RBI-backed security, making them a compelling option for many freelancers and

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

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!

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