₹12,000 crore is pouring into cross-border payments — How to pick the right platform?
Every month, thousands of Indian freelancers, IT firms, and exporters send or receive money across borders. Most of them lose 3–7% of every payment to hidden fees they never agreed to. That quiet bleed adds up to lakhs each year — and it is entirely avoidable.
India's cross-border payment sector has attracted over ₹12,000 crore in cumulative investment and market revenue. Venture capital firms, global payment giants, and the RBI itself are all betting that faster, cheaper international transfers will drive India's next growth wave. Nium raised $312 million and became a unicorn. Xflow closed a $16.6 million Series A in February 2026, backed by Stripe and PayPal Ventures. Skydo secured $10 million to serve 30,000 MSMEs. The race to rewire how money moves in and out of India is well underway.
But more platforms also mean more confusion. Which one actually saves you money? Which one meets RBI compliance standards? This guide breaks down exactly what to look for — and what to avoid — when choosing a cross-border payment platform in India.
Why is this boom happening now?
Three forces are converging. First, India's digital remittance market reached $1.58 billion in 2024 and is growing at nearly 20% annually, reaching $4.54 billion by 2030. Second, the RBI released its consolidated Master Direction on Payment Aggregators in September 2025, creating a formal PA-CB (Payment Aggregator — Cross Border) licensing category for the first time. Third, UPI international payments grew 20-fold in a single year, jumping from 37,000 transactions in FY24 to over 755,000 in FY25.
India's outward remittances under the Liberalised Remittance Scheme reached a record $31.73 billion in FY24. Even with a slight dip to $29.56 billion in FY25, the volume remains massive. Investment-linked remittances surged 89% in the first nine months of FY26, as more Indians buy US stocks, overseas property, and global ETFs. The RBI LRS remittance limit stays at $250,000 per person per year, and growing financial literacy means more people are actually using it.
The regulatory push is equally significant. The RBI now mandates that cross-border payment platforms operating in India hold a minimum net worth of ₹25 crore by March 2026. Razorpay, Cashfree, Wise, PayPal, Skydo, and Xflow have all secured PA-CB licences. This wave of licensing builds trust — but it also raises the bar for platforms that cannot meet compliance requirements.
The hidden cost no one talks about
The single biggest expense in any international transfer is not the fee you see on the receipt. It is the forex markup buried inside the exchange rate. Banks typically add 2–3.5% above the mid-market rate. PayPal adds another 3–4% forex conversion fee on top of its 4.4% transaction fee. When you combine these costs, a freelancer receiving $5,000 through PayPal can lose ₹30,000–₹35,000 in a single transfer.
International money transfer fees are not always visible. Correspondent banks in the SWIFT network silently deduct $10–30 per intermediary hop. Your receiving bank in India adds ₹500–₹1,500 as inward remittance charges. GST at 18% applies to all service fees. A software developer billing $4,000 per month via traditional bank wire loses roughly ₹9,500 per month — about ₹1.14 lakh per year — just in transfer costs.
The fix is straightforward. Compare the rate on your FIRC (Foreign Inward Remittance Certificate) against the live mid-market rate on XE.com or Google. The gap between those two numbers is your real hidden cost. If that gap is more than 1%, you are probably overpaying.
Six factors that actually matter when choosing a platform
Not every platform suits every use case. A freelancer receiving $2,000 monthly from Upwork has different needs than an IT services firm invoicing $50,000 quarterly. Here is what to evaluate, ranked by financial impact.
Exchange rate transparency comes first. Platforms like Wise use the mid-market rate and charge a visible fee of 0.3–1.6%. Skydo and Xflow claim zero forex markup with flat fees of $19–29 per transaction. Banks and PayPal embed their profit in the exchange rate, making it hard to see the true cost. Always demand the best forex rates for Indians by comparing the offered rate against the interbank benchmark before confirming any transfer.
Total fee structure matters more than transfer fees alone. A platform advertising "₹0 transfer fee" but adding a 3% forex markup on a $10,000 payment costs you $300 — far more than a platform charging $29 flat with zero markup. Calculate the net amount you receive in INR for every $1,000 sent. That single number tells the full truth.
The speed of settlement directly affects cash flow. Traditional SWIFT transfers average 1–5 business days. Wise delivers 45% of its transfers instantly. The UPI-PayNow link between India and Singapore enables near-real-time payments. Fintech virtual account solutions from newer players typically settle within 24–48 hours. If you bill clients weekly, even a two-day improvement in settlement speed compounds into better working capital management.
Regulatory compliance and licensing protect your money. Only use platforms with RBI PA-CB authorisation or those operating through authorised dealer banks under FEMA. Check for PCI DSS compliance and multi-jurisdictional licences from regulators like the FCA or FinCEN. A platform should also issue FIRCs or FIRAs automatically — you need these for GST filings and income tax compliance.
Currency coverage determines your reach. Wise supports 140+ currencies. Payoneer covers 70+. PayPal supports just 25. If your clients pay in euros, pounds, dirhams, and dollars, pick a platform that handles all four without forcing double conversions through an intermediate currency.
API and accounting integration saves hours each month. If you use Xero, QuickBooks, or Shopify, check whether the platform offers direct integration. Payoneer supports batch payments of up to 1,000 transactions. Stripe and Airwallex provide developer-friendly APIs. For businesses processing 20+ payments monthly, this is not optional — it is essential.
How UPI is changing the game abroad
UPI international payments are no longer experimental. Indian travellers can now pay using UPI in Singapore, UAE, France, Sri Lanka, Bhutan, Nepal, Mauritius, Cyprus, and Qatar. Malaysia was announced as the next major market in February 2026, with Japan and Thailand in active discussions.
The numbers tell a compelling story. Cross-border UPI transactions jumped from under 40,000 in FY24 to over 755,000 in FY25. NPCI International has onboarded over 2 million merchants worldwide and aims to reach 20 countries by FY29. The India-Singapore UPI-PayNow link already supports real-time person-to-person transfers, not just merchant payments.
For freelancers and small businesses, UPI international payments are not yet a replacement for dedicated platforms. Transaction limits remain low, and forex markups of 2–4% apply through issuing banks. But for travel payments and small remittances, UPI is rapidly becoming a viable, wallet-free option.
What the RBI's new rules mean for you
The September 2025 Master Direction brought three changes that directly affect platform users. First, every PA-CB transaction is now capped at ₹25 lakh (roughly $28,000). Payments above this threshold must go through traditional banking channels. Second, platforms must maintain separate collection accounts for inward and outward flows — no co-mingling. Third, the net worth requirement of ₹25 crore is expected to push 5–10 smaller fintechs out of the market or into mergers.
For users, this consolidation is actually good news. Surviving platforms will be better capitalised, more compliant, and more accountable. If you are comparing platforms that handle international payments, look for a platform with a valid PA-CB licence on the RBI's published list. You can compare the top options for receiving international payments to find the one that best suits your business volume.
The TCS (Tax Collected at Source) landscape also shifted. Budget 2025 raised the exemption threshold to ₹10 lakh. Budget 2026 reduces the TCS rate on education and medical remittances from 5% to 2% starting April 2026. Investment remittances above ₹10 lakh still attract 20% TCS — but remember, TCS is fully adjustable against your income tax liability when you file your return.
Common mistakes that cost real money
The most expensive mistake is looking only at the visible transfer fee. A platform charging $5 per transfer but embedding a 3% forex markup on $10,000 costs you $305. One charging $29 flat with zero markup costs exactly $29. The markup is typically 3–10 times larger than the visible fee.
Over-relying on traditional banks is the second pitfall. Banks charge 2–5% in forex markups compared to 0–0.5% at fintech platforms. For annual volumes of ₹40 lakh, switching to a specialised platform saves at least ₹1.2 lakh. This applies whether you are exploring Payoneer alternatives for freelancing or comparing Stripe alternatives for your business.
Not tracking aggregate costs ranks third. A 3% cost on a single ₹50,000 transfer feels small — just ₹1,500. But across 24 transfers per year at ₹50,000 each, that adds up to a loss of ₹36,00t. Scale this to ₹2 lakh per transfer, and the annual loss crosses ₹1.44 lakh. Small percentages compound into large sums when you transfer money regularly.
The right platform will not just save you money today. It will scale with your business, keep you compliant with RBI regulations, and give you transparency at every step. Start by calculating your true cost per transaction — transfer fees plus forex markup plus intermediary charges plus GST — and use that number to make an informed decision.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. Winvesta makes no representations or warranties about the accuracy or suitability of the content and recommends consulting a professional before making any financial decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
Every month, thousands of Indian freelancers, IT firms, and exporters send or receive money across borders. Most of them lose 3–7% of every payment to hidden fees they never agreed to. That quiet bleed adds up to lakhs each year — and it is entirely avoidable.
India's cross-border payment sector has attracted over ₹12,000 crore in cumulative investment and market revenue. Venture capital firms, global payment giants, and the RBI itself are all betting that faster, cheaper international transfers will drive India's next growth wave. Nium raised $312 million and became a unicorn. Xflow closed a $16.6 million Series A in February 2026, backed by Stripe and PayPal Ventures. Skydo secured $10 million to serve 30,000 MSMEs. The race to rewire how money moves in and out of India is well underway.
But more platforms also mean more confusion. Which one actually saves you money? Which one meets RBI compliance standards? This guide breaks down exactly what to look for — and what to avoid — when choosing a cross-border payment platform in India.
Why is this boom happening now?
Three forces are converging. First, India's digital remittance market reached $1.58 billion in 2024 and is growing at nearly 20% annually, reaching $4.54 billion by 2030. Second, the RBI released its consolidated Master Direction on Payment Aggregators in September 2025, creating a formal PA-CB (Payment Aggregator — Cross Border) licensing category for the first time. Third, UPI international payments grew 20-fold in a single year, jumping from 37,000 transactions in FY24 to over 755,000 in FY25.
India's outward remittances under the Liberalised Remittance Scheme reached a record $31.73 billion in FY24. Even with a slight dip to $29.56 billion in FY25, the volume remains massive. Investment-linked remittances surged 89% in the first nine months of FY26, as more Indians buy US stocks, overseas property, and global ETFs. The RBI LRS remittance limit stays at $250,000 per person per year, and growing financial literacy means more people are actually using it.
The regulatory push is equally significant. The RBI now mandates that cross-border payment platforms operating in India hold a minimum net worth of ₹25 crore by March 2026. Razorpay, Cashfree, Wise, PayPal, Skydo, and Xflow have all secured PA-CB licences. This wave of licensing builds trust — but it also raises the bar for platforms that cannot meet compliance requirements.
The hidden cost no one talks about
The single biggest expense in any international transfer is not the fee you see on the receipt. It is the forex markup buried inside the exchange rate. Banks typically add 2–3.5% above the mid-market rate. PayPal adds another 3–4% forex conversion fee on top of its 4.4% transaction fee. When you combine these costs, a freelancer receiving $5,000 through PayPal can lose ₹30,000–₹35,000 in a single transfer.
International money transfer fees are not always visible. Correspondent banks in the SWIFT network silently deduct $10–30 per intermediary hop. Your receiving bank in India adds ₹500–₹1,500 as inward remittance charges. GST at 18% applies to all service fees. A software developer billing $4,000 per month via traditional bank wire loses roughly ₹9,500 per month — about ₹1.14 lakh per year — just in transfer costs.
The fix is straightforward. Compare the rate on your FIRC (Foreign Inward Remittance Certificate) against the live mid-market rate on XE.com or Google. The gap between those two numbers is your real hidden cost. If that gap is more than 1%, you are probably overpaying.
Six factors that actually matter when choosing a platform
Not every platform suits every use case. A freelancer receiving $2,000 monthly from Upwork has different needs than an IT services firm invoicing $50,000 quarterly. Here is what to evaluate, ranked by financial impact.
Exchange rate transparency comes first. Platforms like Wise use the mid-market rate and charge a visible fee of 0.3–1.6%. Skydo and Xflow claim zero forex markup with flat fees of $19–29 per transaction. Banks and PayPal embed their profit in the exchange rate, making it hard to see the true cost. Always demand the best forex rates for Indians by comparing the offered rate against the interbank benchmark before confirming any transfer.
Total fee structure matters more than transfer fees alone. A platform advertising "₹0 transfer fee" but adding a 3% forex markup on a $10,000 payment costs you $300 — far more than a platform charging $29 flat with zero markup. Calculate the net amount you receive in INR for every $1,000 sent. That single number tells the full truth.
The speed of settlement directly affects cash flow. Traditional SWIFT transfers average 1–5 business days. Wise delivers 45% of its transfers instantly. The UPI-PayNow link between India and Singapore enables near-real-time payments. Fintech virtual account solutions from newer players typically settle within 24–48 hours. If you bill clients weekly, even a two-day improvement in settlement speed compounds into better working capital management.
Regulatory compliance and licensing protect your money. Only use platforms with RBI PA-CB authorisation or those operating through authorised dealer banks under FEMA. Check for PCI DSS compliance and multi-jurisdictional licences from regulators like the FCA or FinCEN. A platform should also issue FIRCs or FIRAs automatically — you need these for GST filings and income tax compliance.
Currency coverage determines your reach. Wise supports 140+ currencies. Payoneer covers 70+. PayPal supports just 25. If your clients pay in euros, pounds, dirhams, and dollars, pick a platform that handles all four without forcing double conversions through an intermediate currency.
API and accounting integration saves hours each month. If you use Xero, QuickBooks, or Shopify, check whether the platform offers direct integration. Payoneer supports batch payments of up to 1,000 transactions. Stripe and Airwallex provide developer-friendly APIs. For businesses processing 20+ payments monthly, this is not optional — it is essential.
How UPI is changing the game abroad
UPI international payments are no longer experimental. Indian travellers can now pay using UPI in Singapore, UAE, France, Sri Lanka, Bhutan, Nepal, Mauritius, Cyprus, and Qatar. Malaysia was announced as the next major market in February 2026, with Japan and Thailand in active discussions.
The numbers tell a compelling story. Cross-border UPI transactions jumped from under 40,000 in FY24 to over 755,000 in FY25. NPCI International has onboarded over 2 million merchants worldwide and aims to reach 20 countries by FY29. The India-Singapore UPI-PayNow link already supports real-time person-to-person transfers, not just merchant payments.
For freelancers and small businesses, UPI international payments are not yet a replacement for dedicated platforms. Transaction limits remain low, and forex markups of 2–4% apply through issuing banks. But for travel payments and small remittances, UPI is rapidly becoming a viable, wallet-free option.
What the RBI's new rules mean for you
The September 2025 Master Direction brought three changes that directly affect platform users. First, every PA-CB transaction is now capped at ₹25 lakh (roughly $28,000). Payments above this threshold must go through traditional banking channels. Second, platforms must maintain separate collection accounts for inward and outward flows — no co-mingling. Third, the net worth requirement of ₹25 crore is expected to push 5–10 smaller fintechs out of the market or into mergers.
For users, this consolidation is actually good news. Surviving platforms will be better capitalised, more compliant, and more accountable. If you are comparing platforms that handle international payments, look for a platform with a valid PA-CB licence on the RBI's published list. You can compare the top options for receiving international payments to find the one that best suits your business volume.
The TCS (Tax Collected at Source) landscape also shifted. Budget 2025 raised the exemption threshold to ₹10 lakh. Budget 2026 reduces the TCS rate on education and medical remittances from 5% to 2% starting April 2026. Investment remittances above ₹10 lakh still attract 20% TCS — but remember, TCS is fully adjustable against your income tax liability when you file your return.
Common mistakes that cost real money
The most expensive mistake is looking only at the visible transfer fee. A platform charging $5 per transfer but embedding a 3% forex markup on $10,000 costs you $305. One charging $29 flat with zero markup costs exactly $29. The markup is typically 3–10 times larger than the visible fee.
Over-relying on traditional banks is the second pitfall. Banks charge 2–5% in forex markups compared to 0–0.5% at fintech platforms. For annual volumes of ₹40 lakh, switching to a specialised platform saves at least ₹1.2 lakh. This applies whether you are exploring Payoneer alternatives for freelancing or comparing Stripe alternatives for your business.
Not tracking aggregate costs ranks third. A 3% cost on a single ₹50,000 transfer feels small — just ₹1,500. But across 24 transfers per year at ₹50,000 each, that adds up to a loss of ₹36,00t. Scale this to ₹2 lakh per transfer, and the annual loss crosses ₹1.44 lakh. Small percentages compound into large sums when you transfer money regularly.
The right platform will not just save you money today. It will scale with your business, keep you compliant with RBI regulations, and give you transparency at every step. Start by calculating your true cost per transaction — transfer fees plus forex markup plus intermediary charges plus GST — and use that number to make an informed decision.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. Winvesta makes no representations or warranties about the accuracy or suitability of the content and recommends consulting a professional before making any financial decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
