The Best PayPal Alternative in India for Freelancers and Online Merchants

We are in the middle of an ecommerce boom in India. Indian consumers are getting used to buying products and services online and making online payments.

In such a day and age, the ability to receive payments online is mandatory for any business. The business could be as small as a freelancer providing online services or it could be a medium-large business receiving millions of rupees in revenues every month.


PayPal was invented for this purpose. When PayPal was launched, online businesses blossomed all over the world. New business models were born because it was so easy to receive payments online. PayPal used to work well in India, for a while.

Then all of a sudden RBI (The Reserve Bank of India) started disrupting the business model with a lot of regulations and restrictions.

Post RBI’s intervention Indian PayPal users were not able to:

  • Hold their PayPal balance in their PayPal account
  • Send or Receive money between Indian PayPal users.

Right now PayPal can be used only to make payments through your credit or debit card to a PayPal user in another country. You can also receive payments to your PayPal account from other countries but that money will be withdrawn to your bank account. You will not be able to hold that balance to make further payments.

If you try to send or receive payments within India, your transaction will not go through. The biggest hurdle for Indian businesses is that there is no peer-to-peer money transfer system within India.

Without an easy online payment system, most of the Indian freelancers and merchants go about this way:

  • Ask your customers to send money via NEFT bank transfer (very cumbersome because they have to add the details manually and wait 24-48 hours for the beneficiary to be approved). If you are going to make it hard for your customers to send money to you, you are going to lose a lot of customers.
  • And of course, there is a possibility of asking your customers to send you a Cheque to your address. And we know how cumbersome that is.

Doing business in India is difficult enough already. Creating something of value and selling it online is not easy either. On top of this if the customers find it hard to send payments, it could mean the difference between a thriving online business to actually closing it down due to poor sales and low revenue.

instamojo changes all that. The people behind Instamojo wanted to create a simple online payment solution for Indian freelancers and merchants. Instamojo is not just an alternative for PayPal in India, it is much more than that.

If you want to sell anything online in India, all you have to do is sign up for an account, verify your account by uploading your KYC documents and within half a day your account would be ready to receive payments.

With PayPal, you can receive payments with an email ID, with Instamojo you have to create a payment link and anyone can pay you by clicking on the link.

I am a happy user of Instamojo and this is how my account dashboard looks:

instamojo dashboard

Once you create a payment link, you can share this link anywhere you want: your blog, your social media account, email, whatsapp and so on.

People who click on this link will see a page with your offer. They can make a payment through Credit Card, Debit Card or Net-banking – the most used online payment modes in India.

instamojo payment

After they finish payment, they will be taken to the URL of your choice where you can deliver your digital goods, or let them enter their contact details in a form.

Your customer’s payments are reflected in your account. This balance is paid out every Friday directly to your bank account. Instamojo charges a flat 5% fee on your transactions but the fees go down as you make higher volume of transactions.

The best part about is that there are no setup fees and the activation of the account is simple and fast! Other payment gateways in India charge a monstrous setup fee, ask you to submit a ton of documents with n number of signatures, and also charge transaction fees!

Instamojo also has an App store where you can find amazing apps make your selling experience easier and better. For example, they have introduced an affiliate app recently which helps you recruit affiliates and encourages them to promote your product for free.

I have been using for quite some time now and I am very satisfied with their service. You can read my seller success story on Instamojo’s blog.

A while back I had published a review of Instamojo on this blog as well. Since they have no setup fee and the registration is free, why don’t you give it a try today? Go and check out the apps that they have in their system.

I have another surprising news about Instamojo which I will tell you in a while! I hope you found this blog post interesting and useful. If you have any comments or questions, looking forward to hear from you.


#Receiving Monies Day & Night!


32 thoughts on “The Best PayPal Alternative in India for Freelancers and Online Merchants”

  1. That’s an excellent post. I have been looking for a good PayPal alternative in India and Instamojo seems to be good enough. I just tried signing up for a free account and so far it looks good! Will post a feedback after using them!

  2. Hi Deepak,
    Thanks for a major update.. The update, I’m talking about is the Payout time.. Somewhere, I don’t remember exactly, I had read that they pay after two weeks. But your current article is saying they send the payout every Friday ! That’s Really Awesome ! 🙂
    I’m already in at Instamojo ! 🙂
    Thank You For The Updates !

  3. Hi Deepak, thanks for your post, this is exactly what i was looking for. I’m eager to know what your “another surprising news about Instamojo” is going to be. will be waiting to read it… Also can you let me know whether the Instamojo pay button can be integrated with an autoresponder like mailchimp the way paypal does with getresponse and aweber . If yes, can you give us a brief tutorial on how to do it, would be greatly appreciated, thanks so much

    • Hi Nergis. Thanks for the comment. Right now instamojo doesn’t have an integration with email auto-responders. But I will suggest them that they should implement it. It will be very useful for information marketers.

      Regarding the news, I will be posting about it soon!

  4. I think Stripe is probably not currently available in India (might be in the future), but for some other countries the alternative is to use Stripe with a hosted payment form such as

      • But support faq says that buyers can be from beyond india and international payments are allowed. they say that it depends on KYC process and case by case basis. but they didnt tell explicitly on currency supported other than INR.

  5. Hi,
    do you have any idea if they require business account.
    I have service tax id and company name but just savings account.

  6. i have registered with instamojo 1 week before and i have submitted all required proofs but till now there is no response and i don’t know how to contact them bcoz if i try official number of instamojo “call is always redirected to voice mail..what to do??
    how long should i wait for approval???
    please give me solution for this..i am waiting for your reply..
    Thanks in advance..

  7. I have started to earn money from PTC websites recently. So I would like to know how to recieve payments to my bank account other than paypal as Paypal charges a lot of transaction and withdrawal charges. You should also note that different websites have different payment methods. Also thanks for the gr8 review………..Anybody who would like to earn lots of money online in their spare time or full time, feel free to contact me. My e-mail id is

  8. Hi,
    Thanks for this amazing paypal alternative. I want to know, I already have verified paypal a/c. Can i connect my bank a/c to instamojo because it already connected to paypal.can i sell ebook on my blog using instamojo.
    Thank you

    • Yes you can sell ebooks using Instamojo. You can connect the same bank account to instamojo. Your payouts will be made to the bank account listed there.

  9. Hi,
    Thanx for reply,
    Few days ago I opened instamojo a/c and also created my first paymenet link. I am also provided my document but still it showing This link is pending approval.
    I want to sell ebook contaning some ptc, survey, data entry websites. They take long time to approval.
    Can ebook or other digital good we want to sell make copyright?

  10. Deepak ….

    I head a small USA Devlpmt company

    I am having increasing problems with PayPal payments to Indian Freelance software consultants.

    Could you please recommend one or two Freelance phP/MySQL freelancers who are using Instamojo where monthly payments by Visa Card will work to pay their fees.

  11. Hi Deepak,

    Thank you for this informative write up. It answers questions for many of us. As a business owner, I need to pay sellers on my website on a regular basis. Instamojo seems to be ideal. Do you know if one can pay sellers outside India?

  12. Dear Mr.Deepak,
    We are a well known merchant based in India with our worldwide operation s in USA, UK n Aus.we are using PayPal from many years n now looking for a better option see if u can assist… Instamojo doest support our requirements…eagerly waiting for your reply

    • Hi Nikhil, please go ahead and sign up at However, Instamojo supports payments only within India.

  13. it’s only work in india if i want to receive amount from usa to india so is that possible with this.

    please reply me ASAP.

    Regards: Deepak Upadhyay

  14. I want to invest money in paidverts. Have you heard about paidverts? If you have not than google it. But there is no way with paypal than what should i do? Let me know if you can help me or not.

  15. If India is restricted, do you feel it would be a good idea to buy a PayPal account in another country from Auction Essistance?

  16. Hi Deepak
    That’s a good article. I am working for a US client, currently getting paid thru paypal. Looking for an alternative. I think my US client can pay in INR, but my only question is about the conversion rates. Are they better than pathetic paypal rates or even worse than that. Please reply.


Leave a Comment