PayPal Increases Transaction Fees in India to 4.4%!

pp-logoPayPal has been finding very difficult to do business in India with the intervention of RBI with various regulations. After a lot of confusion and uncertainty the waters finally calmed down and Indian PayPal users were able to receive $10,000 USD in single payments.

Now PayPal, being a monopoly kind of service provider in this space have increased their transaction fees for India and a few other south east Asian countries to 4.4% + a flat fee, which will be probably $0.30 if it is the same as before.

 New Fees  Old Fees
 Fees  4.4% + Fixed Fee  3.9% + $0.30 USD
 For $1000  $44 + Fixed Fee  $39 + $0.30

The only chance to get payments for export services for thousands of entrepreneurs in India is Bank wire or PayPal. Bank Wire (TT – Telegraphic Transfer) is cumbersome and most of the buyers will not be willing to do it. PayPal is so costly for the kind of convenience it provides. And oh yeah! there is something called a Check! But it will take 60-80 days before you see money in the bank account!

It is high time that some competition comes along to make it easier for Indians to do business.

Comments

  1. Yeah!!!
    How about moneybookers / alert pay / paise pay?

    • Moneybookers is not a replacement for PayPal. AlertPay is also not that competitive. Paisa Pay is for ebay merchants only.

  2. They can go with CCAvenue Payment gateway.

  3. I created paypal premier account but i want personal acctont. how to change paypal premier account to personal. plz help me

  4. Rrishu Jain says:

    How about Skrill. Even skrill can be used for transfecting money internationally.

  5. Really paypal now looting us. We want any other alternative now.

  6. Has this changed back to the old rates yet? Overall in general PayPal is slowly increasing fees blindly for all countries. Originally they were shockingly offering big business as low as 1.7% during their early days back in 2006. Those days are gone. Now only big business are the giant businesses and our rates have gone up an entire 1%.

    As for Skrill, they are even more expensive. If you want the best rate, you have to contact their sales first and tell them your volume.

    Think the biggest issue with companies is risk and with advancements in non risky payment methods such as bitcoin, countries in Asia can eventually prosper with low fees online.

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