If you’re a freelancer, online business owner, or someone who shops on international websites, you’ve probably come across PayPal. It’s one of the most widely used platforms in the world for sending and receiving money. But many people in India still ask: Can I use PayPal here? How does it work? What are the fees?
In this guide, you’ll learn exactly how PayPal works in India, how to set up an account, what it can and can’t do, and whether it’s still a good option for you.
Is PayPal Available in India?
Yes, PayPal is available in India — but with some important limitations.
You can:
- Receive payments from clients or companies located outside of India.
- Use PayPal to pay for goods and services on international websites.
You cannot:
- Send or receive money within India.
- Use PayPal for payments to Indian users or merchants.
PayPal no longer supports domestic payments in India. It’s now focused only on international transactions.
How to Create a PayPal Account in India
Creating a PayPal account in India is simple and free. Here’s how to do it:
- Visit paypal.com/in and click “Sign Up.”
- Choose between a Personal Account (for individuals and freelancers) or a Business Account (for companies and online sellers).
- Enter your name, email address, and create a password.
- Link your Indian bank account or a debit/credit card that supports international transactions.
- Complete identity verification using your PAN card and address proof.
Once your account is verified, you can start receiving international payments and making purchases online.
How to Use PayPal in India
Here’s how Indian users typically use PayPal:
Receiving Payments from Abroad
If you’re a freelancer, digital creator, or run a business that deals with international clients, PayPal is a convenient way to get paid. The platform will convert the payment into Indian Rupees and automatically transfer it to your linked bank account.
Paying International Merchants
You can use PayPal to shop on international websites or pay for global services and subscriptions, as long as those platforms accept PayPal.
Limitations
You cannot send money to another Indian PayPal user or use it for local purchases. Domestic payments are not supported.
Is PayPal Safe to Use in India?
Yes, PayPal is secure and trusted worldwide. It uses strong encryption, account monitoring, and optional two-factor authentication to protect your money and information. It also offers a buyer and seller protection policy for eligible transactions.
In India, PayPal operates in compliance with local financial regulations and banking standards.
PayPal Charges for USD to INR Conversions
PayPal does charge fees when you receive payments in a foreign currency.
Here’s how the fees typically break down:
- A transaction fee of around 4.4% plus a fixed fee based on the currency.
- A currency conversion fee that adds about 3–4% above the standard exchange rate.
Example:
If someone sends you $100:
- PayPal may deduct around $4–5 as a fee.
- The remaining amount is converted into INR at a slightly lower rate than the actual market rate.
- You’ll receive the funds in your bank account after conversion and deduction.
These charges can add up over time, so it’s a good idea to calculate your net income when invoicing clients through PayPal.
Can Freelancers and Students Use PayPal in India?
Yes. Many freelancers, remote workers, creators, and students use PayPal to receive payments from abroad. It’s especially popular for those working on international platforms like Upwork, Fiverr, or those doing affiliate marketing or selling digital products.
Alternatives to PayPal in India
If you’re looking for other ways to receive or send international payments, consider the following alternatives:
- Payoneer – A strong choice for freelancers and businesses. It offers better exchange rates and lower fees.
- Wise (formerly TransferWise) – Ideal for low-fee transfers and transparent currency conversion.
- Stripe – Good for online businesses and e-commerce.
- UPI/Paytm/PhonePe – Great for domestic payments, but not supported for international use.
Final Thoughts
PayPal is still a reliable and convenient option for people in India who need to send or receive international payments. It’s easy to use, widely accepted, and secure. However, it’s not ideal for domestic use or for those looking to avoid higher fees on currency conversion.
If your work involves clients or services outside of India, PayPal remains a practical tool to include in your payment options. Just be sure to understand the limitations and costs involved so you can make the most of it.
