How Does PayPal Work When Sending Money to India?

If you are an expat living in Singapore—whether you hold an EP, SP, or WP—sending part of your hard-earned salary back home is a monthly ritual. A common question I get from my readers is: how does paypal work when sending money internationally, and is it the best option?

Here is the straight answer: While PayPal is convenient for shopping, it is often a wallet-killer for remittances. When you send money from Singapore to India via PayPal, they apply a significant markup on the exchange rate (often 3-4% above the mid-market rate). In contrast, local banks like DBS or UOB offer safety but often come with lower exchange rates or fixed fees. This is where fintech disruptors like Panda Remit shine, offering rates closer to the actual market rate with transparent, low fees.

Stop Queuing: Where is the Best Place to Change Money in Singapore?

For decades, the standard answer to where is the best place to change money in singapore was undoubtedly People’s Park Complex in Chinatown or The Arcade at Raffles Place. We have all been there—standing in long queues during lunch breaks, carrying large amounts of cash, and haggling over a few cents.

However, in 2024, the "best place" is no longer a physical shop; it is on your smartphone. Physical remittance centers have high overhead costs (rent, staff), which are passed on to you via worse rates. Digital platforms like Panda Remit operate entirely online, allowing them to pass those savings back to you in the form of higher INR exchange rates. Plus, you avoid the security risk of carrying cash across the island.

The PayPal Trap: How Does It Actually Work?

To truly understand the cost, let's break down how does paypal work when sending money from Singapore to India:

• The Process: You link your Singapore credit card or bank account to PayPal and select the recipient in India.
• The Hidden Cost: PayPal charges a transaction fee, but the real cost is in the currency conversion. If the market rate for SGD to INR is 63.00, PayPal might offer you 61.00. On a $1,000 transfer, you are effectively losing 2,000 INR just on the rate difference.

Comparatively, Panda Remit displays the fees upfront and offers a rate much closer to the Google market rate.

Tutorial: How to Transfer Money from DBS to Other Bank (Panda Remit)

Many users worry that switching to a new app is complicated. It isn't. The most common funding method is using PayNow or a standard bank transfer. Here is a quick guide on how to transfer money from dbs to other bank accounts to fund your Panda Remit wallet:

1. Register an Account: First, set up your profile on pandaremit.com. You will need your Singpass for instant verification (MyInfo).
2. Initiate Transfer: Enter the amount of SGD you want to send to India. The app will show you the exact INR amount your recipient will get.
3. Select Payment Method: Choose "Bank Transfer" or "PayNow".
4. Log in to DBS/POSB Digibank:
   • Select PayNow and enter the UEN provided by Panda Remit.
   • OR select Transfer Funds > To Other Bank (FAST Transfer).
5. Complete the Transaction: Once the funds reach Panda Remit (usually instant via FAST/PayNow), the remittance to India begins immediately.

Singapore to India: Speed and Options

When sending to India, speed is crucial. You might ask, how long does overseas transfer take?

• Traditional Banks (SWIFT): 1 to 3 working days.
• Panda Remit: Often arrives within minutes. They support direct transfers to Indian bank accounts (via IFSC) and UPI IDs (like Google Pay India, PhonePe, or Paytm), making it incredibly convenient for your family back home.

Comparison: DBS vs. Chinatown vs. Panda Remit

FAQ: Remitting from Singapore

1. Is Panda Remit regulated in Singapore?

Yes. Safety is the priority. Panda Remit is regulated by the Monetary Authority of Singapore (MAS) under the Payment Services Act. This means your funds are handled with the same level of compliance expected of major financial institutions.

2. What is the PayNow transfer limit?

By default, most banks like DBS/POSB set a daily PayNow limit (e.g., S$1,000 or S$5,000). If you need to send a larger amount (e.g., for property investment in India), you can log into your banking app to increase your daily transfer limit up to S$200,000 depending on your bank's settings.

3. How long does overseas transfer take on weekends?

Traditional banks often pause processing on weekends. However, because Panda Remit utilizes local payment networks in India (IMPS/UPI), transfers initiated on a Saturday or Sunday are often processed 24/7.

Ready to get more INR for your SGD? Check the live rates now at pandaremit.com and stop overpaying on hidden fees.