Skydo vs PayPal: Which is Better for International Payments in 2026?

Receiving money from international clients should not be like crossing a maze of payment delays, fees, and paperwork. The right payment platform makes cross-border business seamless, fast, and hassle-free.

Skydo and PayPal are standard solutions, yet each differs in various business aspects. In this article, we’ll break down Skydo vs PayPal to help make an informed decision regarding choosing a suitable platform for global B2B payments.

• Skydo charges a flat fee starting at $19 with no forex markup, making it significantly more affordable than PayPal’s 4.4% transaction fees plus a 4% currency conversion markup. This pricing model benefits Indian businesses handling high-value international wire transfers.

• Skydo provides an instant FIRA (Foreign Inward Remittance Advice) for every transaction, helping businesses stay compliant with RBI and GST rules. PayPal only issues FIRAs monthly, which may slow down documentation and refund processes for exporters or service providers.

• PayPal is more suitable for small international payments, especially for freelancers, creators, and e-commerce sellers working on platforms like Upwork, Etsy, or Fiverr. Its global reach, card payment support, and buyer protection make it ideal for micro transactions and retail.

PayPal is a household brand that guarantees strong buyer and seller protection, secure infrastructure, and monthly digital FIRAs for Indian customers. Skydo, on the other hand, is dedicated to the Indian exporter and service provider, offering INR settlement, a flat fee, and complete RBI conformity. Let’s look at these differences in detail.

Skydo is an Indian fintech that aims to make international wire transfers faster, cheaper, and more compliance-friendly for Indian businesses and freelancers. It allows you to take foreign payments, just like it takes the local transactions, conveniently and without forex markups and compliance & KYC issues.

Skydo was developed according to the needs of Indian businesses, SaaS providers, and service professionals to simplify traditional cross-border transfers. Whether it’s quicker INR settlement time or automatic FIRA generation, Skydo is tailored to the specific demands of Indian companies that deal with foreign clients.

Skydo's main features are:

Global virtual accounts

You can obtain receiving accounts locally in USD, EUR, GBP, etc., avoiding hefty SWIFT network charges.

Flat and transparent pricing

Skydo charges a set price ($19 29 or 0.3%) instead of taking a percentage cut.

Zero forex markup

For currency conversions, you receive INR with live mid-market rates with no hidden markup.

Quick FIRA and compliance tools

Skydo implements auto FIRA within 24 hours to make it easy to comply with GST and RBI.

Accelerated settlements and tracking

Skydo allows real-time tracking. INR settlement time takes 24- 48 hours to be received into the Indian bank account.

PayPal is a reliable online payment system for international transactions, with an extensive spread and a secure system. It allows you to send, receive, and control payments without divulging financial information.

With PayPal, Indian freelancers and businesses can access 200+ countries with more than 100 currencies. It is easy to use and very popular. However, conducting regular cross-border payments using this platform can still be problematic due to its fee system and lack of automation regarding compliance & KYC.

PayPal’s main features include:

Buyer-seller protection

PayPal provides protection services to buyers and sellers against fraud, chargebacks, and disputes.

Global reach

PayPal's reach spans over 200 countries, accepting 25+ currencies to support online transactions.

Monthly digital FIRA

Indian customers can access FIRA every month, which assists international payment compliance.

Robust security

PayPal adds 24/7 fraud surveillance and complex encryption to defend money and user information.

Flexible payments 

You can use credit/debit cards, subscription models, invoicing, and email-based payments with PayPal.

In the case of Indian users, the decision between Skydo and PayPal comes down to a trade-off: cost-efficiency, compliance, and India-specific support versus global reach, brand recognition, and transactional flexibility.

Here is a table showing the differences between Skydo and PayPal:

For freelancers and companies in India that receive and pay large amounts of money abroad, Skydo may be a cheaper and India-optimized alternative to PayPal.

Here are some reasons to choose Skydo over PayPal:

Cost-effective transfers

Skydo follows a flat fee payment structure with no forex markup and is suitable when dealing with large payments. Compared to PayPal’s 4.4% transaction fees and an additional 4% currency conversion markup, Skydo charges a fixed fee of only $29. This includes even payments as high as 10 thousand rupees, which makes it cheaper.

Faster settlement and free FIRA

Skydo makes B2B payments to the bank accounts in India within 24-48 hours, and offers instant FIRA on each transaction at no additional charges for the same. This simplifies the process of compliance & KYC checks. Under PayPal, you only receive a FIRA summary every month.

India-centric features and support

Among Skydo’s solutions for Indian clients, there are virtual foreign bank accounts, automated purpose code tagging, and integrated tools, including the export invoice payments generator and the payment tracker. PayPal, on the other hand, lacks such integrated invoicing and compliance-focused tools tailored for Indian exporters.

Overcoming PayPal’s India limitations

PayPal does not support domestic transfers in INR and has minimal services available in India. It costs more to make large export invoice payments. Here, Skydo is ideal for low-volume transactions.

When users are interested in global accessibility, incorporation of e-commerce, and ease of use, PayPal takes the upper hand with greater abilities than Skydo.

Here are some reasons to choose PayPal over Skydo:

Global trust and client familiarity

PayPal is accepted in more than 200 countries. Many foreign customers, especially individuals and small firms, are already using it. It also has an association with freelancing platforms like Upwork, Fiverr, and Etsy, thus it is more appealing to freelancers and creators. Skydo is more popular among Indian users.

Broader functionality and flexibility

With PayPal, you can transfer and receive money anywhere in the world, unlike Skydo. It offers several payment options (credit/debit cards and ACH bank transfers), making it suitable for both small and e-commerce transactions. On the other hand, Skydo is limited to cross-border bank transactions from select countries. 

Faster onboarding and simple setup

Onboarding with PayPal is easy without requiring any technical skills. It is therefore suitable for small business owners, solopreneurs, and new freelancers who prefer to start quickly. For Skydo, the process is more compliance-heavy. You’ll need to verify your PAN, GSTIN, IEC code, bank verification, and business incorporation documents during the assisted onboarding to start. 

No need for client sign-up

PayPal allows international clients to make export invoice payments without needing to create a PayPal account themselves, reducing friction and improving the payment experience for one-time or casual buyers. Skydo is subject to client onboarding and bank transfers, which could delay one-time payments.

It is critical to know Skydo and PayPal charges, especially when dealing with international wire transfers frequently. Here's a simple guide showing the different pricing of both Skydo and PayPal:

Skydo pricing 

Skydo offers a flat fee pricing model, suitable for medium to large transaction amounts. Here's how it works:

• Up to $2,000: $19
• $2,001 to $10,000: $29
• Above $10,000: 0.3% of the amount

Skydo pricing features

• Zero forex markup: Live interbank foreign exchange (FX) rate with no hidden charges.
• Free FIRA: Instant FIRA (Foreign Inward Remittance Advice) included.
• No setup or monthly fees
• Custom rates: Available for monthly volumes above USD 100,000.
• GST: 18% applicable on transaction fees

PayPal pricing

PayPal uses a percentage-based pricing model, which can be expensive for higher-value transactions. Here's how it works:

• Transaction fee: 4.4% of the payment amount
• Fixed fee: Based on currency 
• Currency conversion fee: 4% markup on foreign exchange (FX) rate

PayPal pricing features

• Percentage-based pricing: Charges grow with payment size, potentially costly for large transfers
• Forex markup: ~4% added to exchange rate
• Free FIRA: Monthly digital FIRA provided for compliance
• No setup or monthly fees
• Global acceptance: Widely trusted, used in over 200 countries
• Estimated loss: Combined fees may reduce earnings by up to 8%

While Skydo and PayPal cater to different priorities, such as cost-efficiency versus global reach, some businesses may seek a solution that offers both. Xflow gives you the best of both worlds with its speed, ease, and compliance as you receive global payments.

Xflow is a modern cross-border payment solution customized to suit Indian exporters, freelancers, and service providers. It ensures transparent and smooth international payment acceptance, while also being fast with automated regulatory compliance.

Some Xflow features:

• Next-day INR settlement: Get your foreign payments settled into your Indian bank account within one business day.
• Live forex rates: See live foreign exchange (FX) rates, with no markups attached to them.
• Free e-FIRA generation: Receive e-FIRA of each transaction automatically to comply with GST and RBI.
• Virtual global accounts: Get paid in more than 25+ currencies, as a local
• RBI-compliant: Transactions are entirely regulated to make safe and easy transfers
• 24/7 support: Specialized customer support and service