In today’s connected world, businesses need to handle money from different countries easily. For Indian businesses, finding the best way to receive international payments is very important to save time, reduce costs, and follow the rules. This blog explains the simplest ways to receive international payments in India.

What Are International Payment Systems?

International payment systems are tools that help users send or receive money across different countries. They enable businesses to get paid from international clients quickly, safely, and easily.

There are mainly two types of international payment systems: 

1. Bank-based systems

These include bank-to-bank money transfer via Society for Worldwide Interbank Financial Telecommunication (SWIFT) network, IBAN (International Bank Account Number), and traditional wire transfers. Banks use these networks to move money between accounts in different countries.

2. Non-bank or digital systems

These are modern payment platforms like Infinity, PayPal, Wise (formerly TransferWise), Skydo, and Payoneer.  Such platforms allow you to open multi-currency bank accounts so you can easily receive money in different currencies, such as USD, EUR, GBP, etc. and convert your payments into INR.

Digital payment platforms have faster processing, lower fees, and user-friendly interfaces as compared to traditional bank systems.

Key Features of International Payment Systems:

• Currency conversion: They automatically convert foreign currencies into INR.

• Cross-border compliance: Digital platforms adhere to global anti-money laundering (AML) and know-your-customer (KYC) regulations.

• Security protocols: They have strict protocols and authentication processes to protect users against fraud and unauthorized transactions.

• Settlement time: Non-banking platforms usually process payments within 1-3 business days. .

Methods of Payment in International Trade

Before diving into the best methods to receive international payments in India, it’s important to understand the common methods of payment in international trade:

Wire Transfers:

Wire transfers are one of the most popular methods for international payments. Platforms like SWIFT ensure secure fund transfers between banks worldwide. Though reliable, wire transfers can sometimes involve high fees and longer processing times.

Credit Cards and Payment Gateways:

Platforms like PayPal, Stripe, and Razorpay enable businesses to accept payments from credit cards and other online methods. These gateways often support multiple currencies, making them ideal for e-commerce businesses.

Letters of Credit (LC):

A letter of credit is a document issued by a bank guaranteeing the seller will receive payment as long as the terms of the agreement are met. This method is widely used in international trade to mitigate risks.

Demand Drafts and Checks:

While traditional, demand drafts and checks are still used by some businesses. However, they’re slower compared to modern digital payment methods.

Digital Banks:

Digital wallets like Payoneer, wise and Infinity offer convenient and cost-effective solutions for international payments. They support real-time currency conversion and are user-friendly.

Invoice Payment Links:

Many businesses use software solutions that generate invoice payment links, allowing clients to pay using their preferred international payment method.

How to Receive International Payments in India

Receiving international payments in India has become simpler with advancements in technology and financial systems. Here are the most efficient ways to receive payments:

1. Bank Wire Transfers

Indian banks offer robust facilities for receiving international payments via wire transfers. Businesses can share their SWIFT code and account details with clients, enabling seamless fund transfers. Popular Indian banks like SBI, ICICI, and HDFC provide competitive rates and reliable services.

• Pros: Secure and widely accepted and Direct transfer to your account.

• Cons: High transaction fees and Slower processing time.

2. Payment Gateways for Cross-Border Payments

Many Indian businesses rely on international payment gateways like PayPal, Payoneer, and Razorpay. These gateways integrate easily with websites and offer features like multi-currency acceptance and recurring payments.

• Pros: Easy integration with e-commerce platforms and Supports multiple currencies

• Cons: Gateway fees can add up and charges currency conversion fees.

3. Digital Banks

Platforms like Wise and Infinity are gaining popularity among freelancers and small businesses in India. They allow users to receive international payments with minimal fees and offer real-time currency conversion rates.

• Pros: Low fees and transparent exchange rates and Quick transfer times.

• Cons: Limited to users of the platform

4. Foreign Currency Accounts

Many Indian banks offer foreign currency accounts, enabling businesses to hold and receive payments in foreign currencies. This method is beneficial for businesses that frequently deal with international clients.

• Pros: Avoid frequent currency conversions and Flexibility in managing funds.

• Cons: Account maintenance charges and Regulatory compliance.