PayPal, Wise or Payoneer: What RBI's Export Rules Mean for Getting Paid by a Canadian Client
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
In 2026 a Canadian client can pay an Indian exporter through PayPal, Wise or Payoneer. Each invoice is an export of services under the RBI's FEMA Regulations 2026. You file an EDF and realise payment within nine months. Your AD bank reports a purpose code. Keep the FIRC or FIRA. A GST LUT lets you supply without paying IGST.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies that export services to clients in Canada and invoice in CAD, USD or another currency. | FEMA Export and Import Regulations 2026, FEMA Manner of Receipt and Payment Regulations 2023, IGST Act s.2(6) and s.16, CGST Rule 96A, FETERS purpose codes, Canada Regulation 105 | Skydo, Razorpay, Wise Business, PayPal, Payoneer | 6 Oct 2026 |
How do PayPal, Wise and Payoneer compare for Indian exporters paid by Canadian clients?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,70,479 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,68,131 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,64,726 | Wise Business pricing (checked 6 Oct 2026) |
| PayPal | Card and PayPal-wallet payments from overseas PayPal buyers | 4.40% + USD 0.30 per international payment; fixed fee varies | 3.0% above PayPal's base rate on conversion | Not confirmed | Free weekly FIRA; custom Rs 100 + 18% GST each | PA-CB in-principle authorisation granted; final not confirmed | ₹4,35,506 | PayPal pricing (checked 6 Oct 2026) |
| Payoneer | Freelancers and sellers paid via marketplaces or Payoneer clients | Conflicting receiving fee: free, fixed or 1%; 3% INR withdrawal | Conflicting: 3% (fee notice) or 1-4% (pricing page) | Conflicting: auto-withdrawn within 24 or 48 hours | Free digital FIRA downloads; within 72 hours per guide | States in-principle PA-CB; not on RBI list (30 Sep 2026) | ₹4,49,372 to ₹4,68,984 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
Which RBI rule governs money from Canada?
Money from a Canadian client for services is governed by the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026, and by the FEMA (Manner of Receipt and Payment) Regulations, 2023. Canada is outside the Asian Clearing Union, so payment may be received in Indian Rupees or any foreign currency, including CAD.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency and channel | FEMA Manner of Receipt and Payment Regulations 2023 | Reg 3(2)(I)(a)(iii) | From countries outside the ACU, receipts can be in INR or any foreign currency, routed through an authorised bank or authorised person. | Exporters invoicing a Canadian client in CAD or USD |
| Export Declaration Form | FEMA Regulations 2026 | Reg 3(2) | File an EDF within 30 days from the end of the month in which the invoice was raised. Software exporters can also file through STPI. | Every service exporter, including software exporters |
| Realisation period | FEMA Regulations 2026 | Reg 5(1) | Realise and repatriate the full value within nine months from the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend the period. | Canadian clients on long payment terms |
| EDPMS closure | FEMA Regulations 2026 | Reg 4(2) | For invoices up to ₹10 lakh, the EDPMS entry can be closed on the exporter's declaration that payment was realised. | Freelancers with smaller invoices |
| Purpose code reporting | FEMA Regulations 2026; A.P. (DIR Series) Circular No. 84 | Reg 18(2); FETERS purpose code list | The AD bank reports each foreign trade transaction in FETERS, using a purpose code that describes the receipt. | Choosing the code with your bank |
Which option leaves the most rupees when a Canadian client pays $500, $2,000 or $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 4 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,800 | ₹0 | ₹324 | ₹45,248 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,800 | ₹0 | ₹324 | ₹1,87,364 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,748 | ₹0 | ₹495 | ₹4,70,479 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,192 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,895 | ₹0 | ₹341 | ₹1,87,252 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,737 | ₹0 | ₹853 | ₹4,68,131 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,275 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,161 | ₹0 | ₹569 | ₹1,85,759 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,623 | ₹0 | ₹1,372 | ₹4,64,726 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,113 | ₹1,358 | ₹380 | ₹43,521 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,366 | ₹5,434 | ₹1,506 | ₹1,74,183 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,872 | ₹13,585 | ₹3,757 | ₹4,35,506 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,364 and PayPal about ₹1,74,183 at today's reference rate, a difference of ₹13,181.
What documents and GST apply to payments from Canada?
A payment from Canada needs an export invoice, an EDF, a bank remittance record and, for GST, an LUT or IGST payment. Services to a client in Canada are an export of services when the client is located outside India, the place of supply is outside India and payment comes in convertible foreign exchange, or in INR where the RBI permits. Export of services is a zero-rated supply, and an LUT in FORM GST RFD-11 lets you supply without paying IGST.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| Export invoice | You, the exporter | For every supply; its date starts the EDF and realisation clocks | All exporters |
| EDF | You file it with the AD bank, or STPI for software (Reg 3(2)) | Within 30 days from the end of the invoice month | Service and software exporters |
| FIRC or FIRA | The bank that credits the rupees | After each credit, as a record of the inward remittance; check the format with your AD bank | GST records and refund claims |
| e-BRC | DGFT, generated by the exporter with an IEC from the bank's inward remittance data | After payment is received | Exporters who need DGFT confirmation that payment was received |
| LUT (FORM GST RFD-11) | You file it with the jurisdictional Commissioner (CGST Rule 96A) | Before export, to supply without paying IGST | GST-registered exporters |
What changed in the rules this year?
The main change in 2026 is that the FEMA Export and Import Regulations 2026 came into force on 1 October 2026. A.P. (DIR Series) Circular No. 20 supersedes the Master Direction on Export of Goods and Services and the listed circulars, including the SOFTEX circulars, from the same date.
- New regulations: The 2026 Regulations took effect on 1 October 2026 and were amended on 22 September 2026.
- SOFTEX: The SOFTEX circulars are listed as superseded in Circular No. 20, and software exports now use the EDF.
- Realisation: The 22 September 2026 amendment set the services period at nine months from the invoice date, or twelve months for INR invoices (Reg 5(1)).
- Small invoices: Invoices up to ₹10 lakh can close in EDPMS on the exporter's declaration (Reg 4(2)).
- Unrealised exports: Exports unrealised one year past the due date limit further exports to full advance or an irrevocable letter of credit (Reg 13).
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026), Reg 1(2), 3(2), 4(2), 5(1), 13, 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Supersession of Master Directions and Annex circulars (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Reg 3(2)(I)(a)(iii) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Compilation of R-Returns, Reporting under FETERS, Purpose codes for reporting (checked 6 Oct 2026)
- IGST Act, 2017, Section 2 (Definitions), s.2(6) export of services (checked 6 Oct 2026)
- IGST Act, 2017, Section 16 (Zero rated supply), s.16(1) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 96A (Export under bond or Letter of Undertaking), Rule 96A(1)(b) (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC, FAQ 1, 2 and 10 (checked 6 Oct 2026)
- Canada Revenue Agency IC75-6R2: Required Withholding from Amounts Paid to Non-Residents Providing Services in Canada, Paras 2, 3, 32 and 33 (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)
- Payoneer India home (checked 6 Oct 2026)
Frequently asked questions
Which RBI purpose code goes with a CAD inward remittance from a Canadian client?
The purpose code comes from the RBI's FETERS purpose code list and must match the service you invoiced, such as software, consultancy or design. Your AD bank reports it with the inward remittance. Check our purpose codes list and confirm the code with your bank before the payment is credited.
Does a Canadian client withhold 15% tax under Regulation 105 on Indian export of services?
Canada's Regulation 105 requires a payer to withhold 15% of fees paid to a non-resident for services rendered in Canada. The CRA states that payments for services performed outside Canada are not subject to it. Work done partly in Canada needs a reasonable allocation, so check with the client if you travel there.
Is a FIRC or FIRA needed for export of services payments from Canada?
A FIRC or FIRA is the bank's record that foreign currency reached your account. It can serve as evidence that payment came in convertible foreign exchange, a condition for export of services under GST. Ask your AD bank or payment provider which record it issues for each credit. Our FIRA guide explains the format.
How long can a Canadian client invoice stay unpaid under the RBI export realisation rule?
Under Reg 5(1) of the FEMA Regulations 2026, you must realise the full export value within nine months from the invoice date, or twelve months if invoiced or settled in INR. Your AD bank may extend the period. Use the export realisation period guide for details on extensions.
Does an export of services invoice to Canada attract IGST if a GST LUT is filed?
No IGST is paid when you supply under an LUT in FORM GST RFD-11. If payment is not received within one year or the period allowed under FEMA, whichever is later, the tax with interest is due fifteen days after that period ends. See our LUT filing guide for the portal steps.
Does a freelancer file an EDF for a Canadian client payment now that SOFTEX has ended?
Yes. From 1 October 2026, Reg 3(2) requires service exporters, including software exporters, to file an EDF within 30 days from the end of the month in which the invoice was raised. Software exporters can also file through STPI. Read the EDF filing guide for the steps.
Do PayPal, Wise and Payoneer receipts from Canada follow the same FEMA export rules as a bank transfer?
Yes. The FEMA Regulations 2026 apply to the export itself, whichever channel the Canadian client uses. The money must reach you through an authorised bank or authorised person under the Manner of Receipt and Payment Regulations. The comparison table on this page shows each provider's verified data.