Discover infinity
Posted on Apr 15, 2025
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You just wrapped up a web design gig for a Canadian client or maybe shipped your first textile order to a store in the UK. You've done the work, invoices are sent, and now the client says something like:
"I'll PayPal it to you."
or
"Can I send it through Payoneer ?"
You nod confidently, then immediately open Google.
"Which one's better? Faster? Cheaper? Won't it give me tax headaches?"
Sound familiar? You're not alone.
This blog is for every Indian freelancer, consultant, or small business owner who's stuck between PayPal vs. Payoneer for receiving international payments.
No jargon. No fluff. Just a clear breakdown of both options — so you can make the right call for your business.
PayPal – Global Giant with Familiar Pain Points
PayPal India is often the first name that comes to mind where international payments are involved. Most clients know it, and most of us have used it at least. For the longest time, it has been the go-to option for Indian freelancers to receive international payments.
But let's be real — if you've ever waited a week for a payment to arrive or felt like you lost a chunk in conversion fees, you know it's far from perfect.
Here's how PayPal works in India:
Clients pay you in USD, EUR, or other foreign currencies.
PayPal India auto-converts that to INR
Then, deposit it straight into your Indian bank account.
Supported by most freelancing platforms (Fiverr, Upwork, etc.)
Common pain points with PayPal:
High fees: Around 4.4% platform fee plus a hidden FX markup.
FX Markup — 4% currency conversion fees; you lose a bit on every conversion.
No e-FIRC or clear RBI purpose code tagging, which is a big deal for exporters and tax filing.
Customer support? Let's just say it's not the most India-friendly.
An Indian professional shared a post on LinkedIn about PayPal’s high currency conversion charges to receive money from abroad.
Source: LinkedIn Post
That said, PayPal is a very trustworthy option for abroad clients. If your clients insist on PayPal, it's still a decent, reliable option, especially for smaller, one-off payments.
Related Read: PayPal vs. Infinity: Who Saves You More on FX Fees
Payoneer – A Freelancer Favorite with Growing Trust
If you've worked on Upwork, Freelancer.com, or sold assets on Envato, chances are you've come across Payoneer in India.
It enables you to create a virtual bank account in foreign countries. This way, you can easily collect payments in multiple currencies and withdraw in INR. Payoneer is often faster and more efficient than PayPal, especially in terms of transaction fees.
What makes Payoneer appealing?
You get virtual bank accounts in the US, UK, EU, etc.
FX rates are generally better than PayPal.
INR withdrawals typically take 1–2 business days.
Partnered with big platforms like Amazon, Fiverr, and Upwork.
But wait, there's a flip side:
eFIRC (Foreign Inward Remittance Certificate) isn't always available, and if you're claiming export incentives, that's a must.
No strong GST support or RBI purpose tagging.
Support is good but lacks deep localisation for Indian users.
Payoneer charges a 1% fee if your client sends you money through ACH Debit.
If you want to convert money from USD to INR, Payoneer charges up to 3% of your transaction amount.
Payoneer also charges an additional $29.95 fee if you receive less than $2000 annually from international clients.
Some customers also report a lack of customer support.
Source: Reddit Post
So, while Payoneer’s currency conversion rate is less than PayPal, you still have to be extra fees to receive your money.
Related Read: A Complete Guide to GST on Cross-Border Payments to India
PayPal vs Payoneer — What Should Indian Users Pick?
Here’s a quick comparison of Payoneer vs PayPal India.
Looking for a Better Indian Alternative?
Here's the truth — neither PayPal nor Payoneer were built with Indian compliance in mind.
They're global products. And that's both their strength and their weakness.
If you're serious about:
Getting e-FIRC instantly
Having the RBI purpose codes properly tagged
Supporting GST filing
Getting paid fast in INR
Saving on every conversion with low FX markups
Then, you should check out a smarter international payment solution instead. That's where Infinity comes in. Specially designed for Indian users, Infinity provides a user-friendly dashboard and strong security; Infinity makes sure that users experience hassle-free international payments.
What does Infinity offer?
Cheapest in the market: Infinity charges a flat fee of 0.5% (inclusive of all), making it the cheapest option in the market.
Free FIRA: Infinity offers free-of-cost FIRA for every international transaction done.
Zero FX markup: Infinity does not charge any FX markup, which means you can convert money from USD to INR or any other currency at a live FX rate.
Built for Indian users, be they freelancers, exporters, startups or even SMBs, Infinity helps you make international payments easier than you thought.
Want to get started to experience hassle-free international transactions? Sign up now!
FAQs
1. Is Payoneer better than PayPal for Indian freelancers?
Payoneer usually offers better exchange rates and faster withdrawals, especially for platform-based freelancers. However, for one-off clients, PayPal might still be easier if that's what they prefer.
2. Do PayPal or Payoneer provide e-FIRC in India?
Neither provides a consistent e-FIRC. This is a key limitation for registered exporters and businesses that need it for DGFT claims or compliance.
3. Which is cheaper for currency conversion: PayPal or Payoneer?
Payoneer generally has better FX rates compared to PayPal. PayPal's conversion rates include hidden markups that eat into your earnings.
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