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How do I receive payments through PayPal?

To find the best way you can receive payments through PayPal, check out all the payment solutions we offer in India.

For your account security and compliance with India’s financial regulations, you’ll need to confirm your email address and your identity before you can receive PayPal payments and withdraw funds from your PayPal account.

Here are the steps you need to take to confirm your identity:

  1. Confirm your email ID registered with PayPal
  2. Complete the identity confirmation required for your business type

Find out the documents you should provide according to your business needs, and then click Complete your KYC to begin the identity confirmation. Our comprehensive step-by-step guides can guide you through this process. To receive only international payments, you need to:

  • To receive only international payments, you just need to:
    • Verify your PAN (Permanent Account Number)
    • Add your Indian bank account
    • Select a Purpose Code

After we've received the information and confirmed your identity, you’ll be able to receive PayPal payments and withdraw funds to your bank account. You can also click Notifications (the bell icon) on your Summary page anytime to track your progress.

What's a purpose code?

In accordance with Indian regulations, you're required to add a reason for your payments (also known as a "purpose code"). This helps the regulators to understand the exact nature of your cross-border transactions. This purpose code must be in place before withdrawing payments from your PayPal account to your local Indian bank account. You only need to add the purpose code once, and it'll be used as the default reason for all your payments.

For all Business accounts, the purpose code is collected during the account creation. You can also update the purpose code later. You can click here to learn how to update the purpose code.

To add an additional layer of confidence when receiving payments, we now provide the sender of funds the option to share a link directly with the recipient that the recipient can use to access and redeem their payment.

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