Detailed guide on International Payment Platforms in India

If you are a freelancer, a small business, or a fast-growing global business and have ventured into the world of receiving international payments in India for your services, you know the challenges. From developers in Bengaluru to exporters in Ahmedabad, Indian businesses are no longer limited by geography.

The internet makes it easy to find international customers, but actually receiving international payments in India is a whole different story.

Every month, thousands of Indian businesses lose 3–5% of their revenue before it even hits their account, thanks to hidden fees and unreliable FX rates.

But change is coming fast. 

According to Juniper Research, the cross-border instant payments market is projected to surge by 223% globally by 2028, capturing 29% of all global instant payment transactions. Modern platforms are making cross-border payments faster, cheaper, and more transparent than the old-school SWIFT international payment system or traditional banks ever could.

In this guide, we’ll break down how international payments work, why your choice of platform matters, and how to choose the best payment gateway for international payments for your business goals.

An international payment system or an international payment processor enables businesses and individuals to send and receive international payments across borders quickly, affordably, and transparently.

Unlike traditional banks, which handle global transfers as just another function within a broad suite of services, these platforms are designed from the ground up to optimize cross-border transactions.

How does it differ from traditional bank transfers?

• Traditional banks: Relies on legacy systems like SWIFT, where a single transfer often passes through 2–4 intermediary banks. This adds delays, hidden fees, and uncertainty around exchange rates and delivery timelines.
• Modern payment platforms: Uses a mix of digital payment rails, local systems, and global partner networks to move money directly and efficiently. This means faster settlement, lower costs, and greater transparency.

These platforms are particularly valuable for:

• Businesses that work with international suppliers and clients, like exporters serving global customers or funded startups paying remote teams and vendors.
• Freelancers receiving international payments in India.
• Companies with distributed teams that pay salaries to staff across multiple countries.
• Marketplace sellers on international platforms who need efficient payment collection.

If you're running a business in India with international clients or suppliers, you are well aware that cross-border payments affect business growth and cash flow. 

International payments directly impact:

• SMBs & IT exporters: Working with clients in the US, UK, or Australia? Delays and FX losses from traditional banking channels eat into margins.
• Freelancers: Whether you're a designer, writer, or engineer, inconsistent payment methods and currency conversions can affect your cash flow.
• E-commerce businesses: Selling on platforms like Amazon, Etsy, or your own Shopify store? Managing returns, refunds, and commissions across borders can get challenging.

Traditional bank transfers come with painful hidden costs that directly reduce your profits:

These costs include:

• Exchange rate markups of 3-5% (on a ₹4 lakh transaction, that's ₹12,000-20,000 lost)
• Fixed fees of ₹1,000-3,000 per transfer
• Unexpected correspondent bank charges that appear without warning
• 3-5 day processing times that delay your access to your own money

A ₹1 lakh payment from a US client might result in ₹94,000 or less in your account, without any clear breakdown of the costs.

• Bank wire transfers

This is one of the oldest and most widely used methods, where funds are sent from one bank to another via the SWIFT network. While it's globally accepted, the process can take several days and includes intermediary bank fees. If a US client wires $10,000 to your Indian business account, it may take 3–5 business days to arrive, and you might receive less than expected after FX markups and hidden deductions.

• Local payout networks (VBANs, direct deposits)

Modern platforms offer local account numbers (virtual bank account numbers or VBANs) in major currencies like USD, EUR, GBP, and AUD. These let your international clients pay as if they were doing a domestic transfer, while you receive the converted INR amount in India. This significantly reduces fees and improves speed—many platforms can settle such payments in 1–2 business days instead of 5+.

• Multi-currency digital wallets

These wallets allow you to receive payments in foreign currencies and hold the funds without converting them immediately. This gives you flexibility—say your client pays you €5,000 today, but the EUR-INR rate isn't favorable; you can hold the balance and convert when the rate improves. It's useful if you invoice in multiple currencies and want to manage your FX exposure.

Unlike SWIFT, real-time networks don’t rely on a chain of correspondent banks. For instance, if a UK client pays via SEPA Instant into a local GBP VBAN, you could receive your INR payout within 24 hours. That same transfer via SWIFT might take up to 5 days and include multiple deductions.

Card payments are convenient for international clients in e-commerce or SaaS. But they come with higher processing fees and a risk of chargebacks, common in digital services. Account-based payments (like ACH in the US or SEPA in the EU) are cheaper and more stable, making them better for high-value or recurring B2B transactions.

Let us say you're a garment exporter in Tirupur who just shipped a $10,000 order to a buyer in the US. Now it's time to get paid, but the path from their bank to your Indian account isn't as simple as it sounds.

1. Payment initiation

Your client sends the money via SWIFT, which routes through 1–3 intermediary banks. Each one may deduct small fees. The process typically takes 3–5 business days.

2. Currency conversion

The USD lands in your bank's foreign account (NOSTRO), and your bank converts it to INR.

If the mid-market USD/INR is ₹86.74 but the bank gives ₹83.80, you lose ₹73,500 on FX for $25,000. Add a ₹2,000 remittance fee, adding up to ₹75,500.

3. Compliance checks

Your bank requires documentation:

• Invoice & shipping documents

• Purpose code (e.g., P0104 for exports)

• Form 15CA/CB (in some cases)

• AML & KYC checks

Once approved, you get a BIRC (Bank Inward Remittance Certificate), a newer, digitally generated document that replaces the traditional FIRC required for GST and proof of exports.

4. Settlement

The INR lands in your account, usually 5–7 days after the client initiates payment.

The smarter way

With modern payment gateways for international payments like Xflow, the client pays into a local USD account, not via the SWIFT international payment system.

You get:

• INR payout in 1 business day

• Near mid-market FX (saving up to ₹70,000+)

• All compliance handled

• e-FIRAss are issued automatically

But when it comes to receiving international payments, things get a lot more complicated.

Transaction fees and processes can vary widely depending on the financial institution or service provider, the method of transfer, and more. Here are some typical costs to watch out for:

• International payment transfer fees: In international payments, intermediaries transfer funds from one country to another country. Financial payment providers or banks offering businesses a service to receive payments in India perform several steps during this process. For this service, banks and payment providers charge a fee.

• Exchange rate on currencies: International payments are defined by using multiple currencies. One key factor affecting payments is the rate applied for currency exchange. Banks and cross-border or international payments service providers usually add a margin to the exchange rate. This FX or foreign exchange rate margin can change significantly from one provider to another. In most cases, the rate margins are hidden, making it difficult to know whether the deal is good.

• Intermediary bank fees: If your international payments pass through intermediary banks before reaching your account, each can charge a processing fee to initiate the transfer, typically deducted from the transferred amount. The intermediary banks act as agents. Just like any agent, the bank charges fees for their services. The transaction fees depend on multiple factors, such as transfer processing, payment method, and the cost of routing the funds from one entity to another. To add to the complexity, intermediary bank fees aren't always transparent or accessible.

• Wire or receiving fees: Your bank may charge you a fee for receiving an international money transfer. The fees for receiving payments in India can vary based on the bank and the transfer method. Even the country involved and invoice amount influence the wire fees. However, you will save money if your client bears these charges. Alternatively, if your service providers enable you to offer your customers local payment methods, you may save on costs, too. Local payment methods such as ACH in the US are practically free for your customers. These local payment methods work like NEFT in domestic transactions and are easy to use, quick, and affordable. There's a bonus too. Your clients might prefer these payment methods over traditional wire transfers, which will help you boost engagement.

• Processing fees: When you receive international payments in India, your bank or transfer service may charge processing or operational fees. These fees are often recorded as additional fees and are charged above FX fees–leaving you to play a guessing game. But you have a choice. Players like Xflow offer transparent pricing and don’t charge any additional fees. The upfront transparency helps you understand the amount you are likely to receive. You can check out our detailed blog on Xflow vs banks to get a clear understanding on how much you can save on cross border payments via Xflow.

• Account opening and documentation fees: To be able to initiate an international payment invoice, businesses need to sign up for the service. This signing up could involve setting up an account or onboarding with the financial institution. The process of sign-up or onboarding can come at a cost. However, some financial services providers offer account opening and access to documents like e-FIRA for every withdrawal for free. That's right—a chance for you to save money.

Pro tip: If you want to save costs on receiving international payments, compare FX rates or look for competitive FX rates linked to inter-bank and mid-market rates. In addition, opt to receive payments via local payment methods, which offer a significantly lower rate than international wires and can be practically free for your customers.

Despite the growing ease of doing business globally, international payments still have a frustrating set of hurdles.

High FX markups and hidden fees

Receiving $10,000 at a bank rate could cost you ₹30,900–₹31,400 in FX markup and fees.

That's a significant dent for a single invoice, especially if you're operating on thin margins. The losses can quickly scale into lakhs of rupees per year for recurring monthly payments.

Slow settlement times

Cross-border payments using traditional systems like SWIFT typically take 3–5 business days, sometimes stretching to 7–10 days due to weekends, time zones, bank holidays, or compliance delays.

This can put your cash flow at risk if you're waiting on client payments to process payroll, settle vendor invoices, or reinvest in growth. Without a way to track real-time progress, you're left guessing when the money will actually arrive.

Regulatory and compliance complexities

If you're based in India, you already know the paperwork involved in moving foreign money compliantly. Each international transaction might require the following:

FEMA (Foreign Exchange Management Act) compliance

GST filings for export of services

RBI reporting for certain fund inflows

Supporting documents: invoices, contracts, Form 15CA/CB

Mistakes or mismatches in these documents can delay settlements or freeze incoming funds. Multiply this across multiple clients or countries, and the admin work alone becomes a burden.

Lack of cost and process transparency

Have you ever expected ₹8.5 lakhs but received only ₹8.2 lakhs without clarity? 

You're not alone.

Hidden deductions are common because:

Banks don't disclose exchange rate margins upfront.

SWIFT transfers often go through 2–4 intermediary banks, each potentially deducting fees

Your own receiving bank might apply charges after the funds arrive.

The result: Unpredictable receipts, confusing bank statements, and extra time spent chasing explanations.

Fragmented global payment infrastructure

While India enjoys fast, efficient domestic systems like NEFT, RTGS, and IMPS, international payments still rely heavily on SWIFT—a network built in the 1970s.

SWIFT moves money through a chain of correspondent banks, each adding cost, complexity, and delay. Newer instant payment networks and fintech platforms offer faster and more transparent alternatives. But global adoption remains inconsistent, and many Indian businesses are still tethered to legacy rails by default.

1.Competitive FX rates and transparent fees

Look for:

• Exchange rates within 1% of the mid-market rate

• Disclosed fees with no surprises

• The ability to see the exact amount you'll receive before the transaction

2. Speed of settlement and instant payouts

How quickly can you access your money? The difference matters.

Verify how long payments take from your major client countries to India. Some routes are faster than others.

3. Compliance and security measures

Make sure the platform keeps your money safe with:

• Strong encryption and data protection

• Two-factor authentication for account access

• Proper regulatory approvals in India and your client countries

• Clear policies for handling disputed transactions

4. Multi-currency and local bank integrations

The best platforms give you local bank details in major markets.

For example, a good provider will give your Indian business:

• US account numbers for receiving USD

• EU IBAN numbers for receiving EUR

• UK sort code and account numbers for GBP

• And similar local details for other important markets

This makes it easier and cheaper for your clients to pay you.

5. API and automation capabilities

If your business handles frequent or high-volume international business payments, choose platforms that offer robust APIs to streamline tasks like invoicing, reconciliation, reporting, and compliance. The right integrations can save hours of manual work and reduce the risk of costly errors.

6. Customer support and reliability

Choose a platform known for fast, knowledgeable, and accessible support. Before committing, test their responsiveness. Send a few pre-sales queries and see how quickly they respond. If support is slow when evaluating, it won't improve once you're a customer.

Checklist for evaluating providers

1. Transparent pricing

• Clear fee breakdown with no hidden charges

• Exchange rates within 1% of the real interbank rate

2. Fast, reliable settlements

• Payment speed that matches your cash flow needs

• Settlements within 1–2 business days (not 5–7)

3. RBI compliance and documentation

• RBI-licensed provider or AD-I partner

• Offers BIRCs and necessary documentation for compliance

• Supports FEMA, GST, and Form 15CA/CB processes

4. Global reach with local payouts

• Supports all major client geographies

• Uses local payout networks instead of just SWIFT

5. Seamless business integration

• Connects with tools like Tally, QuickBooks, Zoho Books, Shopify

• Offers APIs for custom workflows

6. Enterprise-grade security

• End-to-end encryption, 2FA, and compliance with global standards (e.g. SOC 2, ISO 27001)

7. Responsive customer support

• Available during your working hours

• Quick resolution times via chat, phone, or email

Red flags to watch out for

• Hidden fees and unclear FX rates
• Forced currency conversion when you'd prefer to hold foreign currency
• Poor reviews specifically mentioning payment delays
• Unresponsive pre-sales support (it will only get worse after you're a customer)
• Limited regulatory licenses in India or your key markets
• Poor customer service or delayed responses
• No local compliance or BIRC support

1. What is the total cost to receive $10,000 from the US, including all fees and exchange rate margins?
2. How do your exchange rates compare to the real-time interbank (mid-market) rate? Can you show historical data?
3. What is your typical settlement time for payments from my key markets (e.g., US, UK, Europe) to India?
4. Do you provide local bank account details in those markets so my clients can pay domestically?
5. What documentation do I receive for tax and compliance purposes (e.g., BIRCs, Form 15CA/CB support)?
6. Are you RBI-approved or partnered with an AD-I category bank?
7. What happens if a payment gets delayed or rejected? What level of customer support do you offer?
8. Can I automate or integrate payment workflows with tools like Tally, Zoho Books, QuickBooks, or Shopify?
9. Do you offer local INR payouts to my Indian bank account? If so, how fast?
10. How does your platform ensure compliance with FEMA, GST, and RBI rules for cross-border payments?

Choosing the right international payment platform directly impacts your bottom line and operational efficiency. For an Indian business or freelancer receiving ₹10 lakh monthly from international clients, the difference between using a traditional bank and a modern platform could mean saving ₹25,000-35,000 every month—money that goes straight to your profit margin.

Beyond the immediate savings, the right payment solution helps you:

Get paid faster, improving your cash flow

Spend less time tracking and reconciling international business payments

Offer more convenient payment options to your international clients

Scale your global business without payment headaches

XFlow is built specifically for Indian businesses and freelancers who work globally. We offer:

• Transparent FX rates close to the mid-market rate

• No hidden fees—what you see is what you get

• Fast settlements directly to your INR account

• Support for BIRC documentation and compliance workflows

• Seamless integration with your existing tools

Start with Xflow today and keep more of what you earn.

1. How do international payments differ from domestic payments?

International payments involve cross-border transfers, meaning different currencies, regulations, and banking systems. This adds complexity, costs, and potential delays compared to domestic transactions.

2. What are the best options for low-cost global payments?

Digital-first providers like Xflow and better exchange rates than traditional banks. Choosing multi-currency accounts and batch payments can further reduce costs.

3. How long do international transfers take?

Timelines vary based on the provider, destination country, and currency. While some business-to-business international money transfers settle within minutes, others may take 1–5 business days if processed through traditional SWIFT networks.

4. What security measures should businesses consider?

Look for providers with end-to-end encryption, two-factor authentication (2FA), fraud detection systems, and compliance with global standards. Internal controls and user permission settings are also key to preventing misuse.