How to Use PayPal in India: A Powerful Tool for Global Payments

How to Use PayPal in India has become a common question among freelancers, online shoppers, and businesses engaging in cross-border transactions. Although PayPal has phased out its domestic services for personal use, it still serves as a reliable payment gateway for Indian users involved in international commerce. This blog provides a detailed walkthrough on how individuals and businesses in India can make the most of PayPal in 2025.

Setting Up a PayPal Account in India

To get started, users need to create a PayPal account tailored to their needs. Whether you’re a freelancer looking to get paid globally or a business owner expanding internationally, the account setup process is simple:

1. Visit www.paypal.com/in and click on “Sign Up”.
2. Choose your account type:
   • Individual Account – Ideal for freelancers and international shoppers.
   • Business Account – Best for companies that send or receive money internationally.
3. Follow the prompts to complete registration by verifying your mobile number and email.
4. Link a debit/credit card (for Individuals) or bank account (for Businesses) to begin using the platform.

Verifying Payment Methods

Verification is critical to fully activate your account:

• For Individuals: Link your debit or credit card. PayPal will send a one-time password (OTP) to confirm your card.
• For Businesses: Connect a bank account. PayPal will deposit two small amounts into your bank—confirm these on the platform to verify the account.

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Receiving Money with PayPal in India

PayPal is particularly useful for receiving international payments. Here’s how Indian businesses and freelancers can do it:

• Use PayPal Checkout on your website.
• Send online invoices to clients.
• Share your PayPal.Me link for easy payments.
• Use the ‘Request Payment’ feature by entering your client’s email address.

These tools simplify receiving money from overseas clients, ensuring prompt and secure payments.

Sending Money Internationally

Although domestic transactions are no longer available, individuals can still use PayPal to make purchases from international sellers:

• Link a verified debit or credit card.
• Use the ‘Send’ feature in the app or web dashboard to pay merchants or freelancers abroad.

Businesses can also use the platform to pay vendors or partners globally with ease.

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Card and Bank Account Requirements

• Individual Accounts: Only a verified debit or credit card is needed to make international purchases.
• Business Accounts: Must link a bank account for daily operations, including withdrawing funds and tracking transactions.

PayPal Fees and Charges in India

While creating and maintaining an account is free, PayPal charges fees for specific transactions:

• Transaction Fees: Around 4.4% + a fixed fee based on the transaction currency.
• Currency Conversion Fee: An additional 3% fee applies when converting foreign currency to INR.
• Exchange Rate Markup: PayPal applies its own rate, which may differ from the standard market rate.

Current Status of PayPal in India

As of 2025, PayPal has streamlined its services to support international business transactions only. It no longer supports peer-to-peer domestic transfers. This shift aims to strengthen PayPal’s role as a global payment gateway for Indian exporters, freelancers, and e-commerce entrepreneurs.

If you’re wondering how to use PayPal in India, the answer lies in understanding its evolving role. While personal domestic transfers are no longer supported, PayPal remains an essential tool for anyone conducting international business. With multiple features like invoicing, website payments, and global credibility, it empowers Indian users to connect with the global market seamlessly.

Whether you are a freelance designer in Mumbai or a startup in Bangalore exporting handicrafts, PayPal offers a powerful suite of tools to help you receive and send international payments with confidence.

Frequently Asked Questions (FAQs)

Q: Can I send money to friends or family in India via PayPal?
A: No, PayPal India no longer supports domestic personal transactions.

Q: Do I need a PAN card to open a PayPal account?
A: Yes, providing a PAN card is mandatory during the verification process for Indian users.

Q: Is PayPal safe for international transactions?
A: Absolutely. PayPal uses advanced encryption and buyer/seller protection to secure all transactions.