PayPal 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.