Canada is a growing market for Indian services businesses. Canadian tech companies, agencies, and enterprises regularly engage Indian software firms, design agencies, and consultants. This guide covers how Indian businesses receive payments from Canadian clients efficiently in 2026.
How Canadian Clients Prefer to Pay
Canadian businesses are comfortable with:
- Bank wire (EFT/Swift): Standard for B2B invoices above $2,000
- Interac e-Transfer: Canadian domestic payment (works within Canada only — not for cross-border to India)
- Credit card: Common for smaller invoices and subscriptions
- PayPal: Lower adoption than US but exists, especially among smaller businesses
Your Options for Receiving CAD or USD from Canadian Clients
Option 1: Invoice in USD (Recommended for Most)
Many Canadian businesses are comfortable paying international vendors in USD. Canadian companies transact in USD regularly for international services.
Setup: Provide your USD VBA details from Playto Pay or Skydo. Canadian client wires USD from their Canadian bank.
Canadian client's experience: Their bank sends an international wire in USD. Standard process, no friction.
Your experience: USD arrives in your VBA, converts to INR at zero markup (Playto Pay: 1% flat, Skydo: 0.3% above $10K). FIRA auto-generated. INR in Indian bank daily.
Best approach for most Indian businesses with Canadian clients.
Option 2: CAD-Denominated Invoice
If a Canadian client specifically wants to pay in CAD:
Wise Business (CAD account):
- Open a Wise Business account with CAD balance capability
- Provide Canadian Wise account details (transit number + institution number + account number — Canadian domestic format)
- Canadian client sends CAD bank transfer (domestic for them)
- You hold in CAD, convert to INR at ~0.5-1% above mid-market
- Manual FIRC at ~$2.50 Skydo: Check Skydo's current CAD VBA availability; Skydo periodically expands currency coverage.
Playto Pay: Playto Pay's VBA currently covers USD, GBP, EUR, AED. For CAD specifically, USD invoicing (via Playto Pay USD VBA) or Wise Business for CAD holding is the recommended path.
Option 3: Card Payment (Any Currency)
Playto Pay accepts card payments from Canadian clients in any currency:
- Canadian client pays by Visa/Mastercard (CAD or USD card)
- 4% flat, zero forex markup
- FIRA auto-generated
- INR direct daily Best for: Smaller invoices ($500-$5,000), subscription billing, SMB Canadian clients who prefer card.
Cost Comparison for CAD $10,000 Payment (~$7,500 USD equivalent)
| Method | Platform | Fee | Settlement |
|---|---|---|---|
| USD wire | Playto Pay VBA (1%) | ~$75 | Daily INR |
| USD wire (large) | Skydo (0.3%) | ~$22.50 | 24-48hr |
| CAD wire | Wise (~0.7%) + FIRC | ~$52.50 + $2.50 | 1-2 days |
| Card | Playto Pay (4%) | ~$300 | Daily INR |
| SWIFT to Indian bank | Indian bank | CAD 100-300 + 2-3% forex | 3-7 days |
Skydo for USD wires above $10K equivalent is cheapest. Playto Pay for mixed card + wire. Wise for CAD-denominated holding.
Invoice Template for Canadian Clients
Invoice in USD (recommended):
Service: [Description]
Amount: USD [X]
Export of Services – IGST @ 0% (Zero Rated – LUT filed for FY 2025-26)
Payment Instructions (USD):
Account Name: [Your Business Name]
Routing Number: [USD VBA routing from Playto Pay]
Account Number: [USD VBA account]
Swift/Bank: [Partner Bank]
Reference: Invoice [INV-001]
Invoice in CAD (if client requires):
Amount: CAD [X]
Payment Instructions (CAD):
[Canadian Wise account: institution + transit + account]
Reference: Invoice [INV-001]
GST/HST on Services to Canadian Clients
Indian businesses providing services to Canadian clients:
- Indian GST: Export of services, zero-rated. File LUT.
- Canadian GST/HST: For B2B services from Indian businesses to Canadian registered businesses, the Canadian reverse-charge mechanism typically applies (Canadian client handles their own GST). You don't collect Canadian GST.
- At scale with significant Canadian B2C revenue: consult a Canadian tax advisor on GST/HST registration obligations.
FAQ
How do Indian businesses receive payment from Canadian clients? Two approaches: (1) Invoice in USD — Canadian client wires USD, you receive via Playto Pay or Skydo USD VBA. (2) For CAD: use Wise Business CAD account. Card payments accepted via Playto Pay in any currency at 4% flat.
Should I invoice Canadian clients in CAD or USD? USD is simpler for most Indian businesses. Canadian companies are accustomed to USD invoices for international services. Only invoice in CAD if the client specifically requests it.
Does Playto Pay support CAD? Playto Pay's VBA primarily covers USD, GBP, EUR, AED. For CAD-denominated wire receipts: use Wise Business or invoice in USD via Playto Pay USD VBA. Playto Pay handles card payments from Canadian clients (CAD-issued cards) at 4% flat.
Do I need FIRA for Canadian client payments? Yes. All foreign currency receipts require FIRA regardless of the source country. Playto Pay auto-generates FIRA per transaction for USD/GBP/EUR/AED VBA and card payments.
What is the cheapest way to receive a large payment from a Canadian client? Invoice in USD, receive via Skydo USD VBA (0.3% for amounts above $10K USD equivalent). Cheapest option for large structured B2B wires.