Top 12 Payment Gateways for Freelancers in India (Low Fees)

Freelancers in India lose ₹6,000–₹8,000 on every $1,000 they invoice internationally—not because of taxes, but because payment gateways hide forex markups and stack percentage fees. The “zero setup fee” promise means nothing when 4.4% transaction charges drain 18 invoices worth of income annually.

Here’s what competitors won’t tell you: the cheapest gateway isn’t always the one with the lowest listed percentage. Settlement time, GST calculations, and whether you accept international or domestic payments completely change which platform saves you money. A 0.75% gateway that takes 7 days to settle might cost you more than a 2% option with T+1 transfers—especially if you’re paying bills or reinvesting fast.

Why “Free” Payment Gateways Cost More Than You Think

Every Indian payment gateway advertises zero setup fees. Razorpay, Instamojo, Cashfree, PayU—all free to start. The trap? They’re betting you won’t read the fine print on transaction day.

Here’s the real cost structure no one explains upfront:

• Base transaction fee: 2%–2.5% on domestic cards/UPI

• GST on that fee: Add 18% to whatever percentage they quoted

• International card markup: Another +1% to +3%

• Currency conversion spread: 2%–4% hidden in the exchange rate

• Dispute/chargeback fees: ₹500–₹1,000 per incident (buried in Terms)

A “2% gateway” effectively charges 2.36% after GST for domestic payments. For a $500 international invoice, you’re looking at 7%–9% total erosion before money hits your account.

The Reality Check: My Actual Settlement Report I once invoiced a client ₹10,000 via a popular “low fee” gateway. Here is the math that actually hit my bank account:

Item	Amount	Notes
Invoice Amount	₹10,000	What the client paid
Gateway Fee (2%)	-₹200	The advertised rate
GST on Fee (18%)	-₹36	The surprise deduction
Settlement	₹9,764	Net Received

That ₹36 GST doesn’t look like much until you scale it. On a ₹5 Lakh revenue month, you are bleeding ₹1,800 just in tax-on-fees that you can’t claim back unless you are GST registered. 

Domestic Payments: The Sub-2% Tier

If you’re invoicing Indian clients in rupees, three platforms consistently stay under 2.5% effective cost:

1. Razorpay – 2% + GST (2.36% effective)

Zero setup, zero annual maintenance. Supports UPI, cards, net banking, wallets. Settlement in T+1 to T+2. The dashboard is clean, APIs are well-documented, and they don’t hold your first few payments hostage like some competitors.

The downside? International card acceptance requires manual activation, and their forex fees jump to roughly 4.3% + 2% currency conversion. If even 10% of your clients pay with foreign cards, your blended rate climbs fast.

2. Instamojo – 2% + ₹3 + GST (2.36% + ₹3)

Built specifically for solopreneurs and micro-businesses. The ₹3 flat fee stings on small transactions (₹500 invoice = effectively 2.96% after GST), but it includes a free online store and payment links you can share on WhatsApp.

Critical limitation: Instamojo does not support international payments at all. No foreign cards, no multi-currency. If you have even one overseas client, you’ll need a second gateway.

3. Cashfree – ~2% + GST with T+0/T+1 settlement

Slightly better settlement speed than Razorpay (often next-day or even same-day on specific plans). They have favorable UPI rates and occasionally run startup discounts that drop the percentage to 1.8%. The catch: Their customer support is notoriously slow, and reviews often cite rude behavior or “ticket loops” when funds get stuck.

International Payments: The High-Stakes Battlefield

This is where freelancers bleed money. PayPal’s brand recognition makes it the default—and that laziness costs ₹7,000 per $1,000 invoice.

4. BRISKPE – 0.45% + GST (The New King)

Formerly 0.75%, BriskPe recently slashed fees to a flat 0.45% (minimum $2) for freelancers invoicing under $10,000/month. It’s not a payment gateway in the traditional sense; it’s a virtual account service. You get USD/GBP/EUR account details, clients transfer locally (avoiding SWIFT), and BRISKPE converts to INR at mid-market rates.

My Opinion: I was skeptical of BriskPe because it’s newer than Wise, but the math is undeniable. On a $1,000 invoice, Wise charges ~$24 (1.6% + fees). BriskPe charges ~$4.50 (0.45%). The Risk: It is strictly for business payments (B2B). You cannot use this for peer-to-peer transfers or crypto. Also, since clients have to “push” money via bank transfer rather than you “pulling” it via credit card, the friction is slightly higher for them.

5. PayPal – 4.4% transaction + 4% forex conversion (8.4% total)

Let’s be blunt: PayPal is the most expensive legal way to receive money in India. On a $1,000 payment, you lose $44 in fees, then another 4% vanishes in their bad exchange rate. You’ll receive around ₹76,000–₹77,000 instead of the ₹84,000 market rate.

Why use it? Clients trust it, and disputes favor buyers. If you’re closing a first-time client who insists on PayPal, take the hit. But for repeat clients, migrate them immediately.

6. Wise (formerly TransferWise) – 1.6%–1.8% + ₹210 eFIRC fee

The best international option for most freelancers. Wise uses the actual mid-market exchange rate (the one on Google) and charges a flat 1.6%–1.8%. For $1,000, you pay ~$24.50 total. Drawbacks: No buyer protection (clients can’t dispute), so use it only with trusted repeat clients. The eFIRC (tax document) costs ₹210 per transaction, which eats into margins on small invoices below $200.

7. Razorpay International – 4.3% + 2% forex (The “Invite-Only” Club)

Razorpay technically supports international cards, but activation is manual. If approved, you’re looking at 4.3% on card transactions + 2% forex conversion + GST.

My Testing Experience: I applied for international activation on a standard freelancer account. It wasn’t instant. I had to submit an IEC (Import Export Code) and wait roughly 2 weeks. Even then, settlements for international payments took T+7 days. A freelancer waiting two weeks for a $2,000 invoice might as well be using PayPal. Note: They recently launched “MoneySaver Export” accounts which rival Wise at ~1% fees, but this requires a separate application.

8. PayU Biz – 2.9%–3.5% + annual fees

Supports 125+ currencies and provides FIRA documentation. The pricing is murky (depends on negotiation), and there’s often an annual maintenance fee that PayU refuses to disclose publicly. Best for agencies billing $50,000+/year. Overkill for solo freelancers.

9. Payoneer – The Marketplace Heavyweight

If you work on Upwork, Fiverr, or Amazon, Payoneer is often your only real choice besides PayPal. It’s huge, integrated everywhere, and gives you local receiving accounts in USD, EUR, GBP, and more.

• The Fees: You usually pay a 0%–1% receiving fee, but the sting comes at withdrawal. They charge a 2%–3% forex markup when converting to INR.

• The Trap: The “Inactivity Fee”. If you don’t transact at least $2,000 (or sometimes just have “no activity”) in 12 months, they slap you with a $29.95 annual fee.

• Verdict: Mandatory for marketplace freelancers. For direct clients, move them to Wise or Skydo to save that 2% forex hit.

10. Skydo – The “Zero Forex” Flat-Fee Challenger

Skydo is aggressively targeting high-ticket freelancers by removing percentage fees entirely. Instead of charging 1% or 2%, they charge a flat fee (e.g., $19 for invoices under $2,000, $29 for up to $10,000) and convert at the live mid-market rate with zero forex markup.

• The Math: On a $5,000 invoice:

  • PayPal takes ~$250+ (Fees + Forex)

  • Wise takes ~$60 (Percentage fee)

  • Skydo takes $29 flat.

• The Catch: It’s B2B only (invoices must be for business services). You can’t use it for peer-to-peer transfers. Also, for very small invoices (e.g., $100), the flat fee makes it expensive ($19 on $100 is 19%).

11. PhonePe Payment Gateway – The “Actually Free” Domestic Disruptor

While Razorpay and Cashfree charge 2%, PhonePe is currently disrupting the market with a “Zero Transaction Fee” offer for new merchants (limited period) and standard pricing of 1.95% afterward.

• Why it matters: If you process ₹5 Lakh/month domestically via UPI and cards, saving that standard 2% fee puts ₹10,000/month straight back into your pocket.

• The Reality: “Zero fee” promotions are temporary customer acquisition tactics. Sign up while it lasts, but expect to eventually pay the industry standard 1.95%–2% + GST once the honeymoon period ends.

12. PingPong – The E-commerce/Freelancer Hybrid

A direct competitor to Payoneer, popular among Amazon sellers and agency owners. They claim a flat 1% fee cap, which sounds great compared to PayPal’s 4.4%.

• The Hidden Variable: While they cap the transaction fee at 1%, users often report the exchange rate offered is slightly lower than the mid-market rate (though better than PayPal’s).

• Best For: Freelancers who also run dropshipping stores or sell digital products globally, as it integrates well with e-commerce platforms like Shopify and Amazon.

The Hidden Variables No One Compares

Settlement Time (Why T+7 Gateways Are Scams)

• Instamojo: 2–3 days.

• Razorpay: T+1 or T+2.

• Cashfree: T+0 or T+1.

• PayPal: Can hold funds for 21 days for new accounts.

Why this matters: A freelancer with ₹50,000 monthly inflow loses ₹350–₹500/month in potential interest or early-payment discounts when settlement drags to T+7. Cashfree’s T+1 advantage means you invoice Monday and have cash Tuesday.

Updated Recommendation Matrix (The “Cheat Sheet”)

Client / Use Case	Best Gateway	Why?
Direct US/UK Client ($2k+ Invoice)	Skydo	Flat fee ($29) beats percentage fees.
Direct US/UK Client (<$500 Invoice)	Wise	Low % fee is cheaper than Skydo’s flat fee.
Upwork / Fiverr Payouts	Payoneer	Deep integration; unavoidable for marketplaces.
Indian Clients (UPI/Cards)	Razorpay / PhonePe	Reliable domestic support; PhonePe for promos.
Inward Remittance (Lowest Fee)	BriskPe	0.45% fee is currently the market floor.
First-Time / Trust-Issues Client	PayPal	Buyer protection makes the sale easier.

GST Confusion (The 18% No One Budgets For)

Every gateway fee attracts 18% GST. Razorpay’s “2%” is actually 2.36%. On a ₹1,00,000 monthly processing volume, that’s ₹360/month in GST that beginners forget to factor in. Worse: If you’re not GST-registered (turnover under ₹20 lakh), you can’t claim Input Tax Credit on gateway fees. That 18% is a dead loss.

My Actual Recommendation Matrix (Not a Summary)

Scenario 1: You invoice Indian clients under ₹5 lakh/month, mostly UPI.

• Use Instamojo. The ₹3 flat fee is negligible at scale, and the free store + payment links save you from needing a separate invoicing tool.

Scenario 2: You invoice Indian clients but some use international cards.

• Use Razorpay. Apply for international activation immediately. Until approved, direct foreign-card clients to a Wise payment link.

Scenario 3: You invoice $500+ per month from international clients.

• Use Wise for everything. Eat the ₹210 eFIRC cost—it’s still ₹5,000 cheaper than PayPal per $1,000. For first-time clients who demand PayPal, negotiate a 5% “platform fee” surcharge in your quote.

Scenario 4: You need the absolute lowest fees for high-volume exports.

• Use BRISKPE. At 0.45% (min $2), it beats even Wise on price. Just ensure your clients are comfortable doing bank transfers instead of card payments.

Go Check Your Last 10 Settlements Right Now

Don’t wait until year-end tax filing to realize you paid ₹18,000 in gateway fees you could’ve avoided. Download your last 3 months of settlement reports. Add up the fees. Multiply by 12.

If that number makes you wince, migrate 50% of your volume to a lower-fee option this week. You don’t need to switch everything overnight—just send your next 5 invoices through Wise or Razorpay and compare the net deposit.

FAQ (From Real Freelancer Panic Searches)

Q: Can I use Stripe in India as a freelancer? No. Stripe went “invite-only” in India in May 2024 and rarely approves individual freelancers anymore. Don’t waste your time applying; focus on Razorpay or Wise.

Q: Why is my PayPal payment stuck for 21 days? New accounts, large invoices, or “goods/services” classification triggers holds. Upload delivery proof (email screenshots work) and ask the client to “Confirm Receipt” on their end.

Q: Do I need GST registration to use a payment gateway? No, but without GST registration, you can’t claim the 18% GST that gateways charge you. If you’re processing over ₹10 lakh/year, consider registering voluntarily to reclaim thousands in ITC.

Q: Is Wise legal for freelancers in India? Yes, fully RBI-compliant. It generates e-FIRC documents for tax filing. Just ensure clients mark payments as “services” (Purpose Code P0802 usually) for LRS compliance.