How to Receive Foreign Payments Via PayPal in India?

PayPal has grown immensely in India but when it comes to accepting International payments through the platform, there are some doubts. Read this blog to find out.

How to Receive Foreign Payments Via PayPal in India?
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PayPal is certainly a decent way for accepting payments from abroad especially for freelancers and businesses. However, when accepting money from overseas, it is important to evaluate service providers' pros and cons beforehand.

How to Get Started with a PayPal Account?

Depending on how you want to use PayPal, you may want to open an account. There are 2 basic sorts of accounts: business and personal.

Business Account

An email address that will be connected to your PayPal account is required to establish an account. You must also include information about your company, including its nature, its activities, its address, and your PAN information. In order to withdraw money, you must link your Indian bank account and validate your email address.
You can make and receive payments from outside India with a PayPal business account. Additionally, you may use it to send invoices, give payment links, and add built-in buttons to your website.
However, in order to do so, you must have a registered firm such as a partnership, corporation, sole trader etc.

Individual Account

The procedure of opening a PayPal account is simple. You just need to choose the personal account option and then confirm your phone number. Enter your details and link your bank account. Moreover, you can add your debit or credit card to complete your account setup.
Additionally, you are not permitted to keep money in your PayPal account in a wallet because of the RBI regulations on foreign payments.
When compared to a PayPal Business Account, this type of account does not provide the same features, such as the capacity to make invoices or accept online payments from clients. It provides functions including accepting payments from friends and relatives, making purchases, taking money out to your bank account, and moving money around across accounts.
Therefore, those who want to quickly and easily process personal payments can go for a PayPal Personal Account.

How to Receive Business Payments through PayPal in India?

PayPal offers three methods for receiving payments: invoices, links, and email addresses.
Once you have requested payment from either of these methods, your client will pay you that amount through their credit or debit card or out of their PayPal wallet. Then, the money will get converted to INR and get deposited into your Indian bank account.

Through Email address

From anyone with an email address, you may request money. Simply log in to your PayPal account, select Tools, and then select Request Payments.
PayPal will give your client a link where the payment may be made once you've entered their email address, the required amount, and a note for the payment request. The sender does not always need to have a PayPal account to submit the money. A credit/debit card or a Paypal account can be used to pay for the item. A notice will be issued to your Paypal account after the payment has been made.

Through Invoices

You may produce invoices and send payment requests to your clients using your PayPal business account. Additionally, you may include your company's logo, an invoice number, plan payment dates and frequencies, and choose the payment currency to further personalise the invoice.
When the invoice has been updated with this information, you may email it to your clients. Your client can use a debit card, credit card, or PayPal account to make the payment by clicking the payment link in the email. Your PayPal account will immediately be credited with the payment. link is an excellent method to receive money for freelancers. You may share a unique payment link with your clients via SMS, WhatsApp, and other social media platforms so that they can pay you by simply clicking the link.
You may go to and select your unique link to establish a link. You may share your link with others when it has been verified so they can make payments straight to your PayPal account.

How much is the transfer fee for PayPal in India?

For PayPal, the transaction fee is 4.4% of the transaction in addition to the $0.3 charge. However, they are not the only fees you will have to pay.
By marking up the real mid-market exchange rate, PayPal additionally charges a hefty currency conversion fee which is up to 3-4%. Therefore, you are unable to determine the precise exchange rate that PayPal will apply for the transfer until the money is received in the beneficiary bank account.

Time Taken for PayPal Transfer in India

In a perfect world, a payment would appear quickly in your PayPal account. However, it typically takes 3-5 business days for funds to show in your Indian bank account. Additionally, depending on your bank account, extra holding times may be necessary when transferring money.
Funds may be held for up to 21 days while your payment is pending if you are a new seller on PayPal. The procedure should only take up to 7 days following verification if the service you provide is intangible. If so, please revise the order to reflect this.
You can begin transferring money from PayPal to your bank account once PayPal has confirmed your identification to abide by anti-money laundering laws and lower the possibility of fraud.

Looking for a better way to receive your freelance and business payments? Try Mulya Finance!

There are multiple reasons to use Mulya over PayPal to accept payments from your foreign clients. Here’s a complete PayPal vs Mulya comparison.
  • Transaction Fee: There is just a 1% flat fee on Mulya Finance whereas on PayPal it's up to 4.4% + 3% in conversion.
  • Hidden Charges: There are no hidden charges on Mulya Finance and it provides greater transparency as far as the conversion rate is concerned. Unfortunately, these perks are not available with PayPal.
  • Seamless Experience: There is no sign-up required for the client on Mulya Finance. However, for PayPal, the client needs to have a PayPal account.
  • FIRC: While PayPal provides the Foreign Inward Remittance Certificate by the 15th of the month, you can get it within 24 hours with Mulya Finance.
  • Customer Support: PayPal doesn't provide 24*7 customer support. However, with Mulya Finance you can get a resolution to your problem by speaking to a real person and not bots, unlike PayPal.
  • Chargebacks and Issues: PayPal blocks funds in case there is a heavy inflow. Moreover, there are a lot of chargebacks and disputes as well. However, you won't face these issues with Mulya Finance.
To learn more about how to use Mulya, click here to know more about how to get started on Mulya.
Samarth Srivastava

Samarth Srivastava has spent few years honing their skills and knowledge in the field of international payments. With a deep passion for finance and a keen eye for global business trends, the author has become a trusted authority on all things related to international payments.