Banks dominated the traditional banking system in India for decades. You might recollect visiting the closest bank branch to open an account or for money transfers. But visits to physical branches were often frustrating due to long queues and slow processing time.

However, in the last 5 years, the banking sector saw the rise of Neobanks, fully digital banking platforms. These banks have emerged as a popular alternative to traditional banks – about <a href="https://www.marketsandata.com/industry-reports/india-neobanking-market">26%</a> of the Indian population were using Neobanks in 2023 – especially among millennials and Gen Zs.

In this blog, we will tell you every essential detail about Neobanks you must know like the definition of Neobanks, their features, and advantages and disadvantages.

Neobanks have brought in a new wave of banking services in India. The biggest differentiator with a traditional bank is the absence of physical branches. They operate entirely online and provide the usual banking services digitally without a single brick-and-mortar branch.

The term Neobank is made of two words "Neo" and "bank". The word "Neo" means New, however, they cannot be technically called as a "bank" because they cannot apply for a banking license from the Reserve Bank of India (RBI). The RBI doesn't allow 100% digital banking operations in banks. However, these Neobanks can tie up with traditional banks like IDFC and ICICI to provide banking services.

The lack of a banking license doesn't restrict Neobanks from offering a range of financial services similar to conventional banks. You can open bank accounts, avail credit, and engage in online investment options from a single digital interface. The Neobank's model cuts through the frustrations of traditional banking processes like lengthy documentation and offers a seamless experience - one of the prime drivers for tech-savvy customers to prefer Neobanks

What Are the Unique Features of NeoBanks in India?

Here's a list of five features that make Neobank popular:

Neobanks provide their services through digital banking that's why there are no traditional physical branch networks. This benefits customers as they can access any banking service from anywhere and anytime mostly using a mobile app.

One of the biggest reasons behind the rise of Neobanks in India is its technology-led banking services. These services are designed in a way that they match the digital lifestyle of the younger generation. For example, mobile apps are simple and have a clean interface similar to any other app. The learning curve is low, so the customer quickly learns how to open a savings account or transfer money from the app. Additionally, Neobank apps are secure with biometric authentication and offer integration with other digital platforms.

Neobanks leverage AI and data analytics to analyze customer behaviour and offer personalized banking experiences like tailored saving plans or budgeting strategies. For example, the Neobank app might highlight the specific category in which you made frequent purchases last month so you can optimize the spending going ahead.

Neobanks have a low-cost operational model because there is zero spending on maintaining physical branch location. This allows them to pass on the benefits to account holders like lower fees and competitive interest rates.

Most Neobanks have a built-in spending analytics feature that categorizes your expenses into different categories like groceries, entertainment, and travel. This allows you to visualize the spending patterns and take active steps to use money more effectively.

Short-Term Goal-Specific Investment

Neobanks cater to their clientele by providing an option to save money for short-term goals like a vacation or buying a new mobile phone and earning interest on the savings. Customers can create buckets for goals, track progress, and stay motivated. This savings mechanism inculcates a proactive approach to saving and financial discipline.

Cashback and rewards programs incentivize customers to use their services. For example, a customer earns cashback using the Neobank virtual payment cards on certain purchases. Instead of a cashback, they might receive reward points which they can redeem later as discounts on future transactions. Such services enhance the banking experience and encourage customers to use the Neobank for more purchases.

Neobanking is one of the fastest-growing markets in India. It is expected to grow at a three-year compound annual Growth Rate (CAGR) of<a href="https://fintechnews.sg/72636/fintech-india/india-neobanking-sector-poised-for-50-5-annual-growth-through-2025/#:~:text=India%20Neobanking%20Sector%20Poised%20for,Growth%20Through%202025%20%2D%20Fintech%20Singapore"> 50.5%</a> in the fiscal 2025 and to reach<a href="https://inc42.com/features/decoding-indian-neobanking-funding-landscape/"> $183 billion</a> in valuation by 2030. The future of Neobanks is promising and you might expect to see more of them in the coming days, but here's a list of the biggest Neobanks presently operating in India:

Niyo targets travellers and blue-collar workers offering them specialized services like travel cards and salary accounts with attractive benefits. Niyo's goal is financial inclusion by providing access to users unfamiliar with formal banking services.

Founded in 2019, Jupiter attracted more than<a href="https://www.thearcweb.com/article/nbfc-jupiter-revenue-jitendra-gupta-neobank-sequoia-O8Icbunk7NbkYJ5Z"> 2 million users</a> soon after its launch. It offers digital savings accounts in partnership with Federal Bank and provides debit cards and personalized spending insights.

Founded by ex-Googlers, Fi Money offers unique features like group saving goals and peer-to-peer payments

Freo is a credit-led Neobank that serves as a single place for customers to pay with UPI, buy insurance, invest in FDs, and take loans. It offers Freo card, a credit card in partnership with Yes Bank which has no joining or renewal fees and offers generous rewards and fuel surcharge waivers. Freo Pay is another product that lets you shop with UPI transactions, but pay the amount 30 days later.

With the growth of SME founders, Open fills in the gap for modern banking solutions tailored to their requirements. Open allows business owners to connect multiple business accounts and track payments in one place seamlessly. It also allows them to create GST-compliant invoices to get paid on time.

Here are the four benefits of Neobanks that might convince you to give their services a try:

Convenience is the prime reason why many opt for Neobanks over traditional banks. Imagine no long queues or visits to the bank to avail of a loan. Neobanks gives you access to the core banking services right from your home with a stellar customer experience.

Fast services like quick account opening and fast online transfers provide the freedom to concentrate on other important aspects. This is especially true if you are an entrepreneur. Using digital bank services, you can spend more time on growing your business than spending hours on simple banking operations

Neobanks don't have to spend on traditional banking infrastructure keeping their overhead costs low. This gives them the leeway to offer banking services at comparatively lower fees. Zero balance facilities and minimal transaction fees are the most popular ways Neobanks keep its services cost-effective.

Unique Features by Leveraging Technology

Neobanks uses Artificial Intelligence (AI) to study spending habits and offer financial insights. With a rewards program, they incentivize users to spend responsibly. This makes banking more engaging and effective for modern consumers.

Neobanks also have disadvantages, here are the four most common:

While a 100% digital banking experience is convenient for many users, it can be a major disadvantage for other customers. This group of customers prefer face-to-face interactions especially when need assistance with complex banking financial transactions.

Neobanks do not have banking licenses issued by the RBI. This might concern a few users as Neobanks do not fall under the strict radar of financial regulations.&nbsp; A sudden RBI regulation to oversee Neobanks might raise many questions about their operations.

Limited Services Compared to Traditional Banks

In terms of services, most Neobanks are behind traditional banks. A wide range of loan products, wealth management services, and investment advisory are a few services that might leave some customer needs unmet.

As Neobanks operate only as a digital platform, they are more susceptible to cybersecurity threats. However, Neobanks take various security measures to protect customers from fraud. As a customer, you must remain vigilant while completing financial transactions online.

Receive 100% Safe and Compliant International Payments with Skydo

While Neobanks has shifted traditional banking towards digital, tech-savvy experience, they are not the only ones. Virtual banking account platforms like Skydo, offer digital platforms to business owners, exporters, and freelancers to <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payment</a>. Compared to traditional banks, Skydo is quick, affordable, and transparent.

Once your client pays in an international currency, it's converted to Indian Rupee (INR) based on real-time rates and credited to your bank account in 24-48 hours. Skydo also keeps your business compliant with regulatory norms by offering free <a href="https://www.skydo.com/blog/inward-remittance-in-india">foreign inward remittance</a> Advice (FIRA) for every transaction.

Sign up for Skydo in less than 5 minutes and start accepting international payments.

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Canadian clients paying you? Skydo gives you a CAD receiving account, so they transfer to you like a local bank.

If you plan to expand your freelancing or export business to Canada, you will probably wonder: How will my clients transfer money from Canada to India?

Deciding on how your Canada-based clients pay you is not an easy decision. There are multiple ways through which your clients can transfer money from Canada to India and each has a different fee structure and settlement duration. Most of your confusion will be cleared after you read this blog.&nbsp; We have covered all the essential details about each payment method like fees, payment duration, and documentation.&nbsp;

By the end of this blog, you will be much closer to choosing the right payment partner. Note that in this blog, we will mostly be focussing on business payments and no&nbsp;

What Are the Ways to Transfer Money from Canada to India?

Here are the most popular ways for your clients to transfer money from Canada to India:

Banks use <a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">international wire transfers</a> to transfer money from Canada to India. It is definitely the most popular way to transfer across borders, but it comes with its own caveats which we will look. into later in the blog.&nbsp;

This method allows businesses to make payments and transfer money from Canada to India through credit or debit cards. PayPal is a popular example of a payment gateway.

Platforms like Skydo, <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">wise</a>, and Payoneer offer virtual accounts which are digital accounts linked to your physical bank account and these accounts provide an easy and affordable way to transfer money from Canada to India.&nbsp;

Wise P2P and Western Union fall into this category and these are mostly used for personal transfers. These platforms also do not provide FIRA for receiving international payments, which can make compliance harder for you.&nbsp;

How Much Time It Takes to Transfer Money From Canada to India

The duration of transferring and receiving money from Canada depends on the payment method. Here’s a quick breakdown of each method:

It can take 1 to 7 days to&nbsp; transfer money from Canada to India via bank transfer. For example, a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfer</a> takes 5 business days to complete. However, it can take longer if multiple <a href="https://www.skydo.com/blog/intermediary-bank-meaning-and-hidden-fees">intermediary banks</a> are involved in the settlement process.&nbsp;

If your client in Canada transfers money to you in India via PayPal, then it money appears in your PayPal account quickly, but it might take another <a href="https://www.paypal.com/in/cshelp/article/how-do-i-transfer-funds-to-my-bank-account-help394">5 business days</a> for PayPal to credit the amount to your bank account

International virtual accounts are the modern way to make <a href="https://www.skydo.com/blog/cross-border-payments">cross border payments</a>. These are <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual bank accounts</a> tied to your main bank account in India. So your client in can pay you in your virtual bank account in Canada, making it a local transfer instead of an international one, bypassing SWIFT fee.&nbsp;

Virtual account platforms are faster than bank transfers, but the duration of completing a cross-border payment depends on the platform. For example, Skydo settles&nbsp; payments within 24-48 hours

These platforms take 1-5 business days to credit the amount in your bank account. 

What Are the Fees for Transferring Money from Canada to India?

Fees are a key factor when choosing a payment partner. High platform fees reduce the amount you receive, and in most cases, the cost to transfer money from Canada to India is passed on to the receiver.&nbsp;In addition to high fees, transparency is also an important factor. Here’s the fee breakdown to help you make the right choice:

Bank fee structure is complex because the fees depend on the sending as well as the receiving bank. If your clients transfers you money from Canada to India, then they will have to pay a SWIFT fee, roughly ranging between CAD 15 to CAD 80, depending on the bank and they will mostly pass this fee on you. Further, your receiving bank in India, may also charge a fee for receiving an international payment.&nbsp;

Banks also do not provide a live exchange rate by charging a <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup</a>. For example, if the exchange rate of the Canadian Dollar (CAD) to the Indian Rupee (INR) is Rs. 60, the banks might offer Rs. 58 – a loss of Rs.2 for every dollar. In addition, banks charge a fee to issue FIRA which starts at Rs. 200.&nbsp;

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">Payment gateways like PayPal </a>charge 4.4% of the amount as a transaction fee and 0.30 CAD as a fixed fee. So if your client transfers money from Canda to you in India via PayPal, you will have to pay 4.4% as transaction fee plus 0.30 CAD as fixed fee. Further it also levies a 4% markup on the ongoing exchange rate meaning you will effective exchange rate for converting CAD to INR will be 4% lower than the live forex rate.&nbsp;

The fee for international virtual accounts depends on the platform you choose. While there are no SWIFT fees involved while receiving money via international virtual accounts, different platforms levy their respective fee Here we have illustrated the fees for popular platforms like Wise, Skydo, and Payoneer.&nbsp;

Remittance platforms like Western Union, charge fees in the range of CAD 5 to CAD 50 based on the service speed and payment method.

What Documents Are Needed to Transfer Money&nbsp; from Canada to India

For your client to transfer money from Canada to India, you would need to share your respective details with them, including your name, bank account details and SWIFT code for a<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT transfer</a>. They may also need to share some identity proof if required by the bank.&nbsp;

The receiver, in this case the freelancer or business in India, also need to share certain documents and information while receiving the payment as well as while sharing your invoice

<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india">Documentation in inward remittance</a> is an important step, more so when you are receiving a payment from Canada and not just a personal transfer.&nbsp;

Without proper knowledge about documentation, you cannot collect the payment. Here’s a list of documents to help you with the right documents

Identification Proof: Any government-issued document like an Aadhar card, Passport, Voter ID card or Driving license will fall into this category

Bank Account Details: Your payment might get delayed without the right banking account details. Always double-check your account details like account number, branch details, and IFSC before you share with your clients.&nbsp;

Purpose Code: The <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required">Purpose Code</a> defines the nature and purpose of the fund transfer. These codes are alphanumeric and are managed by the Reserve Bank of India (RBI) to regulate cross-border payments in and out of the country. For example, if you provide software consultancy to Canada-based clients, you must mention P0802 as the Purpose Code on your invoice.&nbsp;

<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">Foreign Inward Remittance Advice(FIRA):</a> FIRA is a document issued by banks as proof that you have received payment in foreign currency in India. It’s useful for filing taxes and if you’re an exporter, it’s also useful to claim tax deductions and GST refunds.

<a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know">Bank Realisation Certificate (BRC)</a>: A BRC is essential for exporters selling software or providing services about it because it falls under <a href="https://www.skydo.com/blog/softex-form-guide-indian-exporters">softex</a>. SOFTEX is a form issued by the RBI and must be mandatorily filled out by software exporters. This document is irrelevant if you’re a freelancer or an exporter with no relation to software.&nbsp;

Choosing the Best Way to Transfer Money from Canada to India

Despite the above breakdown, it’s hard to decide the best payment method for your business. It depends on what’s most important for you. Low fees, fast transfers, real-time exchange rate or all of the above? To help you decide, we have rounded up all the above points in this section.

Banks, as trusted financial institutions, must have been at the top of your mind, when contemplating you can your client can transfer money from Canada to India. However, receiving your international payments via banks might not be the best and most affordable option for you especially if you are a freelancer or small business not processing huge volume of payments.&nbsp;

For starters, a SWIFT transfer takes 2 to 7 business days to settle a payment. It can take more time if there are many intermediary banks or due to incorrect details.&nbsp;

In addition to slow settlement, high fees take a deep cut out of your income. As we've mentioned, SWIFT transfer via banks will cost around CAD 15 to CAD 80 in SWIFT fee, which will mostly be passed on to you by your client. Then there will be unfavourable exchange rate offered by the bank, which will further eat into your income. Let's understand this with a quick example. 

Suppose your client is transferring a payment of CAD 10,000 to you via banks. So first there will be a SWIFT fee of say around CAD 50 to transfer the money from Canada to India, which mostly will be adjusted by payment making it CAD 9950. Now, this CAD 9950 will be converted in INR by your bank.&nbsp; Consider the ongoing exchange rate to be 1 CAD = INR 61. However, most banks levy a 2-3% forex markup, so your effective exchange rate will stand at say INR 59. So you will receive 9950*59 = INR 5,87,050 from your bank.&nbsp;

So for your payment of CAD 10,000, which ideally should have been INR 6,10,000, you will receive&nbsp; INR 5,87,050, a difference of INR 22,950 lost to fees and forex markups.&nbsp;

Additionally, collecting FIRA requires multiple follow-ups with your bank, often incurring extra charges—adding to the hassle

Banks might be a reliable option for large businesses handling high volumes of international payments as they can negotiate exchange rates and also get personalized services. However, for small and medium businesses, and freelancers, banks might be an expensive and time-consuming option.

PayPal is another popular platform to transfer international payments from Canada. But it might not be the best option for receiving all kinds of payments.&nbsp;

Case in point: if your client transfers an amount of less than CAD 1,000 using a Credit Card, it’s a suitable option for you. The amount gets added to your PayPal account quickly, but it may another 5 days for the payment to appear in your bank account.&nbsp;

PayPal charges 4.4% as a transaction fee and 0.30 CAD as a fixed fee. The markup rate is about 4% on the current exchange rate of the Indian currency meaning if the rate is Rs.60, then PayPal’s rate will be Rs. 57.6. On a CAD 10,000 payment, you will lose Rs. 24,000.

PayPal provides a digital FIRA covering all the transactions in a month on the 15th of the following month. This might be bad news for you if you prefer instant documentation for payments. 

PayU is another example of a payment gateway that offers convenience but charges a <a href="https://payu.in/pricing/">flat fee of 3%</a> on the transaction . So on a CAD 10,000 payment, the charges will be INR 3000.

Online remittance platforms charge fees based on the payment method. Other than fees, it’s a good option for making personal transfers, but not ideal for business payments because it doesn’t provide FIRA which is necessary for businesses.

Virtual bank accounts are the modern solution for receiving payments from Canada to India. Platforms like Wise, Payoneer, and Skydo settle payments in 24-48 hours and bypass the high SWIFT fees.&nbsp;

However, each platform levies its charges on the transaction amount. <a href="https://www.skydo.com/blog/payoneer-fees-india-guide">Payoneer fees</a> can range from 3% -6% of the transaction amount depending on the method of payment with additional markup on conversion and withdrawal fees.

Wise Business usually charges 1.8% of the transaction amount plus FIRA fees.

In comparison to other platforms, Skydo offers straightforward and <a href="https://www.skydo.com/blog/unlock-transparent-pricing-and-maximize-cost-savings-with-skydo">transparent pricing</a>. For receiving an amount up to $2,000 you pay $19. For anything more than $2000 but less than $10,000 the charges are $29 and for payments upwards of USD 10,000, a 0.3% fee is charged.&nbsp; The amount is converted to INR at a live exchange rate with no markups.&nbsp;

Skydo and Payoneer offer FIRA instantly free of cost. Wise, on the other hand, charges a fee.

How Skydo Makes It Easy to Transfer Payments from Canada to India

Skydo keeps the process of transfer payments from Canada to India simple, transparent, and cost-effective. All you need to do is set up your account on Skydo and you will get virtual accounts in key geographies like the US, Canada, Europe and more in less than 5 minutes. Now, all you need to do is share your Canadian virtual bank account number with your client in Canada. The client will make the payment in that account making it a local transfer instead of an international one, bypassing SWIFT fee. Skydo will then consolidate the payments, convert it to INR at live exchange rate without any markup and deposits it in your Indian bank account.&nbsp;

There are no <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates">hidden fees</a>, you get the current exchange rate value, and you can withdraw the amount in less than 24 hours. To keep your business compliant with the RBI regulations, it automatically creates a FIRA for every transaction at no additional cost.

<a href="https://www.skydo.com">Sign Up</a> for Skydo and choose a hassle-free payment partner for expanding your business in Canada.

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Tazapay is a Singapore-based payment platform that enables cross-border transactions. The platform supports receiving payments through local payment methods, virtual accounts, and cards across Asia, the Middle East, Latin America, and Africa.&nbsp;

This blog post will analyze some of the Tazapay features, pricing structure, user experiences, and find out if there's a more seamless and cost effective Tazapay alternative.&nbsp;

Operating in emerging markets comes with unique payment challenges. From navigating local payment methods to managing currency conversions, here's a detailed look at what Tazapay delivers: 

Payment Gateway to accept payments from 173+ countries

Tazapay processes payments through cards and local methods across different regions. The card processing covers standard options like Visa, Mastercard, and American Express. For local payments, the coverage focuses mainly on emerging markets - PIX for Brazil, UPI for India, and GrabPay for Southeast Asia. While they claim coverage in 173+ countries, the actual availability of local payment methods is limited to specific regions.&nbsp;

Global Collection accounts to receive local payments in 35+ currencies&nbsp;

These virtual accounts enable payment in 35+ currencies through local bank transfers. This means your customers can pay you as if they're making a domestic transfer, even though you're in a different country.&nbsp;

The service requires businesses to complete account verification, though activation timeframes aren't specified upfront. Settlement cycles and maintenance fees vary by country and currency pair. The platform uses quote-based foreign exchange rates rather than displaying live rates, which can affect cost predictability.

For Indian businesses needing FIRA, Tazapay charges <a href="https://tazapay.com/pricing">USD 4 per certificate</a>. The service is restricted to transactions processed through their platform and requires manual requests for each certificate. Processing timeframes and potential amendment charges aren't disclosed in their documentation.

The platform's payout network spans 80+ markets using SWIFT and local bank transfers. SWIFT transfer fees range from<a href="https://tazapay.com/pricing"> USD 5 to USD 35</a>, while local transfers cost between USD 2-5 per transaction. Processing times depend on the destination country and chosen transfer method.

Transaction protection levels vary based on the payment method. Card payments follow standard chargeback procedures, while bank transfers have more limited coverage. Their dispute resolution carries an additional fee of USD 15 per case, and verification requirements change based on transaction value.

<a href="https://www.skydo.com/blog/cross-border-payments">cross-border payment</a> fees can significantly impact business margins. Here's what Tazapay charges for different services:&nbsp;

For payment methods like bank transfers and digital wallets, fees range from 0.8% to 2.5%, with exact rates varying by country and method. Card processing comes at 3.8% plus USD 0.5 per transaction. For example, if your client pays you USD 10,000 via credit card, you would pay USD 380 (3.8% of USD 10,000) plus USD 0.5, totaling USD 380.50 in fees.

For their virtual account service (Global Collection Accounts), pricing isn't publicly available and requires contacting their sales team. The forex rates for currency conversion also need to be directly discussed with Tazapay.

Additional charges include USD 2-5 for local payouts and USD 5-35 for SWIFT transfers.&nbsp;

Other fees to consider are FIRC certificates (USD 4 each), dispute handling (USD 15), refunds (USD 2), and 3D Secure authentication for cards (USD 0.2, waived for successful transactions).

Note: All fees mentioned are based on their standard pricing. Volume-based discounts may be available for larger businesses. Additionally, since Tazapay doesn't disclose their forex conversion rates upfront, there may be hidden <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup</a> costs when converting between currencies.

Tazapay Reviews: The Good, bad, and Ugly&nbsp;

Here’s what Tazapay customers had to say about the tool on review portal <a href="https://www.g2.com/products/tazapay/reviews#reviews">G2</a>

Tazapay gets mixed feedback on usability. While users praise its unique features and seamless transaction processing, a notable learning curve exists for businesses new to international payments. The platform easily integrates with websites, though some users mention the dashboard could be more flexible.

Users consistently highlight Tazapay's business-focused support team as a strong point, particularly appreciating their attentiveness to business needs.

One user opined that they found Tazapay's conversion rates to be unsatisfactory

Please note: These insights are based on user reviews gathered from public platforms and do not reflect Skydo’s opinions.

Skdyo: A seamless Tazapay Alternative for receiving international payments&nbsp;

For businesses collecting international payments, Skydo offers several distinct advantages over Tazapay. Let's examine the key differentiators:

Skydo displays live forex rates directly on the platform. This real-time visibility eliminates uncertainty in cross-border transactions and helps businesses better predict their receivables. The platform charges zero FX margin, potentially saving up to 8.7% compared to traditional methods.

While Tazapay's pricing varies by payment method (0.8%-2.5% for local methods, 3.8%+ for cards), Skydo uses a transparent fee model:

Compared to Tazapay's USD 4 charge per FIRA, Skydo provides instant FIRA (<a href="https://www.skydo.com/blog/inward-remittance-in-india">foreign inward remittance</a> Advice) at no additional cost. The platform also includes GST-compliant invoicing tools explicitly built for Indian businesses.

While both platforms offer virtual accounts, Skydo provides global accounts across 10+ countries within 5 minutes. The platform includes real-time payment tracking, allowing businesses to monitor their incoming transfers at every step.

Being an India-focused platform, Skydo offers localized support through multiple channels, including WhatsApp, and has specific expertise in Indian compliance requirements and banking regulations.

Here’s a quick comparison between Skydo and Tazapay when it comes to receiving international payments:&nbsp;

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Wire transfers can take 5 days with hidden deductions. Skydo settles in 24 hours via local rails, no SWIFT chain.

International wire transfers are the backbone of global payments, powering everything from exports and remote freelancing to SaaS subscriptions. As India’s exports hit record highs and more businesses work with international clients, knowing how to send and receive money across borders is now a must.

But how exactly do international wire transfers work? How long do they take, what fees should you expect, and are there safer or cheaper alternatives? In this guide, we’ll break down everything Indian exporters, freelancers, and SaaS businesses need to know, covering step-by-step processes, timelines, costs, and compliance tips so you can move your money with confidence.

An international wire transfer is an electronic transfer of money from one bank account to another across countries. No physical cash changes hands; everything happens digitally, with your bank and the sender’s bank communicating securely.

Most international wire transfers use the<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT network </a>(Society for Worldwide Interbank Financial Telecommunications). SWIFT acts as the world’s messaging system for banks, allowing them to send payment instructions using unique SWIFT/BIC codes. That’s why international wire transfers are also known as SWIFT transfers or simply bank transfers.

Example:
If a client in the US wants to pay you in India, they’ll instruct their bank to send money to your Indian bank account via SWIFT. The payment travels securely between banks, no physical money ever moves, just electronic records and confirmations.

To receive an international wire transfer in India, you’ll typically need to provide your bank account number and the correct SWIFT code for your branch.

How do International Wire Transfers Work?

Wire transfers operate by sending a secure message from the sender’s bank to the recipient’s bank, instructing them to deposit the specified funds into the recipient’s account. The sender pays for the transaction upfront, and the funds are transferred electronically. 

Upon receiving the message, the recipient’s bank deposits the funds into the recipient’s account. The two banks then settle the payment on the back end, ensuring a secure and efficient transfer process. This method ensures that the funds are transferred quickly and safely, making wire transfers a reliable option for sending money.

What Documents and Information Do You Need for&nbsp; International Wire Transfer?

If you’re receiving an International Wire Transfer, share these details with the sender to ensure your payment reaches you smoothly:

If you’re sending an International Wire Transfer, be ready to provide these details to your bank:

Note:
Banks may ask for additional documentation, like a government ID, PAN card, or paperwork supporting the purpose of transfer (university admission letter, medical bills, etc.), especially for high-value or special-purpose transfers.

How to Make an International Wire Transfer (Step by Step)

You have a few options to send an international wire transfer. Choose what’s easiest based on your bank and needs:

Method 1: Online Banking (Most Convenient)

Method 2: Banking App or Phone Banking

Method 3: In-Person at a Bank Branch

Note: If you’re receiving money, you typically don’t need to do these steps, just provide your bank and account details (see previous section). But knowing the process helps guide your overseas clients.

Yes, international wire transfers are generally considered safe.
They rely on highly regulated networks like SWIFT, which use secure, authenticated messaging and strong encryption to protect every transaction. Banks also carry out strict identity checks (KYC) and monitor for suspicious activity to guard against fraud. Every transfer comes with a unique reference number for traceability and dispute resolution.

What Are the Compliance Regulations Around International Wire Transfers?

International wire transfers in India are <a href="https://skydo.com/blog/compliance-guideline-for-inward-remittance">governed by the Reserve Bank of India</a> (RBI) unde<a href="https://enforcementdirectorate.gov.in/fema">r FEMA (Foreign Exchange Management Act)</a>.
Only Authorised Dealer Category-I (AD Cat-I) banks can process these transfers.

International Wire Transfer Fees (Costs Involved)

International wire transfers come with a mix of visible and hidden costs. Here’s what you need to look out for:

1. Outgoing Wire Fee (Sender’s Bank):
The sender’s bank usually charges a flat fee or percentage (often $30–$50 per transfer for foreign banks; for Indian banks, up to ₹1,500 for outward transfers plus GST). For&nbsp;international payments, clients often pass on the SWIFT fees to the receiver, further reducing the amount you receive.

2. Incoming Fee (Recipient’s Bank):
Indian banks often advertise “free inward remittance,” but what they really do is make their money on the currency conversion (forex markup), not on a direct fee.

3. Intermediary Bank Fees:
If the money passes through <a href="https://www.skydo.com/blog/intermediary-bank-meaning-and-hidden-fees">intermediary banks</a> (which is common in SWIFT transfers), each can deduct its own fee in transit, meaning you might get less than the amount sent, and this deduction is unpredictable.

4. Forex Conversion Markup:
The <a href="https://www.skydo.com/blog/forex-markup-fee-explained">biggest hidden cost</a>. Banks rarely offer you the real mid-market rate (the one you see on Google or XE.com). Instead, they add a margin (typically 1–3%) to the rate, which can cost you thousands on a large transfer.
Example: If $1 = ₹84 in the market but your bank gives you ₹82, you lose ₹2 per dollar. On $5,000, that’s a ₹10,000 loss, much more than any flat fee.

5. FIRC/FIRA Fees:
For compliance, you’ll need a <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">foreign inward remittance certificate</a> (FIRC or FIRA). Some banks (e.g., Axis) charge ₹250 per certificate.

6. GST/Tax:
All bank service fees (not the transfer itself) attract 18% GST in India.

7. Cancellation/Amendment Charges:
If a transfer needs to be cancelled or amended, some banks charge an additional fee (e.g., HSBC charges ₹100 + tax for cancellations).

What Are the Fees Charged by Indian Bank to Send a Wire Transfer

<a href="https://www.icicibank.com/personal-banking/online-services/funds-transfer/outward-remittance/branch-transfer/wire-transfer">ICICI</a>

Tip: Traditional banks add a<a href="https://www.skydo.com/blog/forex-markup-fee-explained"> forex spread, </a>but modern platforms like Skydo let you receive at mid-market rates, so you keep more of your money. If you're curious about how much you must pay while receiving a wire transfer, check our<a href="https://fx-calculator.skydo.com/comparison?utm_source=Social%20Media&amp;utm_medium=Skydo&amp;utm_campaign=FX%20Calculator"> FX calculator</a> to easily get accurate information.

How Long Does It Take to Receive an International Wire Transfer?

Most international wire transfers to India take 1 to 5 business days to show up in your account.

Tip:
If you haven’t received your payment after five business days, check first with the sender to confirm everything was sent correctly. Then, reach out to your bank for a status update or tracking help.

How to track an incoming international wire transfer?

Unlike tracking a courier, you can’t watch your wire transfer move in real time, but you do have options if you’re waiting for funds. Every international wire comes with a unique SWIFT reference number (sometimes called a UTR or transaction reference). Ask your sender for this number. You can also request an <a href="https://www.skydo.com/blog/mt103-what-is-it-why-it-matters-and-how-to-get-one">MT103 document</a> from the sender’s bank, it’s a detailed payment confirmation that acts like a “receipt,” showing where your money is in the SWIFT network.

If your payment is delayed, follow these steps:

Your bank can then use this information to investigate, often pinpointing whether the payment is still in transit, held by an intermediary bank, or if there’s a problem. Some banks even offer online tracking portals for SWIFT payments, or you can call customer support and provide the reference for a status update.

Tip: Waiting a few days is normal, but if your transfer is overdue, don’t hesitate to ask both the sender and your bank for help.

If your international payment is taking longer than expected, it’s likely stuck somewhere in the complex banking chain. Here are the most common reasons:

💡 Pro tip: With Skydo, you receive payments in local USD, EUR, or GBP accounts, bypassing intermediary banks, delays, and markup-loaded conversions. That means faster settlements and more money in your account.

How to Reverse or Cancel an International Wire Transfer

If you’re the sender and realize you’ve made a mistake, maybe you entered the wrong amount or sent money to the wrong person, the first step is to contact your bank immediately and request to cancel or recall the transfer. If the payment hasn’t yet left your bank or is still making its way through the SWIFT network, there’s a good chance it can be stopped (although banks may charge a recall fee).

However, once the funds have reached the recipient’s account, your bank usually cannot reverse the transaction on its own. In that case, you’ll need to contact the recipient and ask them to return the money. That’s why acting quickly is crucial; the sooner you notify your bank, the better your chances of a successful reversal.

Tip: Double-check all details before sending an international wire to avoid these headaches.

If you’re the receiver in India and notice an unexpected or incorrect incoming amount, notify your bank right away, and they can coordinate with the sender’s bank if needed to help resolve the issue.

How do I know if my foreign payment is stuck?

It can take upto 7 business days for your foreign payment to hit your bank account via SWIFT. However, if it is taking longer than that, your payment might be stuck. Don't hesitate to reach out to your payer to know more about where the payment is and urge them to check with their banks. You can also reach out to your bank to know your payment status.&nbsp; Alternatively, modern fintech platforms like Skydo let you track your payments, so that you know where your payments are, at every point in time.&nbsp;

Alternatives to International Wire Transfer

Skydo’s Virtual Accounts:&nbsp;Skydo is rapidly becoming the go-to choice for Indian exporters and freelancers looking for a smarter, faster way to <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payments</a>.

With Skydo, you get international <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual accounts</a> in key markets (US, UK, Europe, Australia, and more), allowing your clients to pay locally and skip the usual SWIFT fees and delays. Funds are transferred to your Indian bank account at the live forex rate with a transparent, flat fee, no hidden markups or intermediary bank charges.

You also get instant FIRC for compliance, and everything is handled digitally for convenience and security. For many, Skydo combines the best of global fintech, speed, savings, and simplicity.

Wise (formerly TransferWise) :&nbsp;<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise</a> is known for its transparent fees and mid-market exchange rates. Senders in over 80 countries can transfer money using local payment methods, which often means faster and cheaper transfers than banks. To maximise savings, both sender and receiver may need Wise accounts, and fees, though generally lower, do scale with larger payments.

Growing Global

Understanding Global Payments blogs