Depending on your website package, your online payment may be powered by Stripe.
After you have connected your website to Stripe, your customers can already choose from various payment methods at checkout. However, to activate PayPal, you'll need to take a few additional steps. These include setting up your PayPal account and activating PayPal as a payment method in Stripe.
Paying via PayPal offers a convenient payment option for your customers that can enhance their overall shopping experience. What makes it especially appealing is its universal accessibility, as customers from across the globe, regardless of their location or currency, can pay in your shop by using their PayPal account.
How to set up PayPal
To use PayPal as a payment method via Stripe, you need a PayPal Business account. You can either create a new PayPal Business account or upgrade your already existing PayPal account to a Business account.
In addition, your account must meet the following requirements:
- All verifications on the part of PayPal must be completed, for example, you must have confirmed your email address. More information can be found at PayPal.
- The Stripe account must be from a supported country:
- Make sure your business complies with PayPal's guidelines regarding supported activities. More information can be found in the PayPal help centre.
How to activate PayPal in Stripe
- Open Stripe and log in with your credentials.
- Navigate to the payment methods settings page.
- Scroll down to the section Wallets.
You might need to select your configuration from the Select configuration drop-down menu first, before you can activate any payment methods. This can be your own configuration or the Default option that is always available. You can find more information about payment method configurations in the Stripe DOCS.
- Select Turn on for the PayPal payment method.
A pop-up opens.
- Select where you would like to send your PayPal revenue. You can find more information about the different options in the Stripe DOCS.
- If you select Settle PayPal revenue to Stripe balance, you can access the money from your Stripe balance according to your payouts schedule, similar to your other Stripe payment methods. Without any action on your part, the funds from the payments received are immediately transferred from PayPal to your Stripe balance. This is also the recommended option.
- If you select Send revenue from PayPal sales to PayPal, you'll need to manage payouts on PayPal with the option to automate the frequency of payouts. The income from your PayPal sales will be displayed in your PayPal account balance.
- Select Connect to PayPal.
You are redirected to PayPal. You may need to confirm your Stripe password before you can proceed to PayPal.
- Connect an PayPal Business account. You can connect an existing PayPal Business account or create a new one as part of the process.
Currently, only PayPal business accounts in the European Economic Area (excluding Hungary), the UK, and Switzerland are supported.
- View the listed conditions and allow the permissions to connect Stripe and PayPal.
You are redirected to Stripe.
- Return to the payment methods setting page in Stripe to check the status of your PayPal integration. It should be Active. If necessary, select Turn on for the PayPal payment method one more time.
You have successfully activated the online payment with PayPal via Stripe.
Learn more about PayPal via Stripe
You can find more detailed information about PayPal payments in the Stripe DOCS. Note that they also contain a lot of information that is less relevant to you. This is why in the following you can find a short summary of the most important information.
The following information might be out of date if Stripe has changed the configuration in the meantime. Always cross-check the information at Stripe!
The payment process is as follows:
- Your customer selects PayPal as a payment method at checkout.
- Your customer is redirected to PayPal and enters login details.
- Your customer completes the authorization process.
They may be able to choose between different funding sources, for example PayPal Wallet, a linked card or bank account, or the Pay Later option.
- Your customer is notified that the payment is complete.
- Your customer returns to your shop for the order confirmation.
Customers must authenticate payments with their PayPal accounts, helping to reduce the risk of fraud or unrecognized payments. However, customers still retain the option to dispute transactions even after completing the payment. Common grounds for these disputes may include customers finding that the products didn't match their descriptions or that they never received their order at all.
Learn more about managing PayPal disputes in the Stripe DOCS.
Via PayPal, your customer can refund their payment up to 180 days after the original payment. Depending on the selected settlement method, Stripe will use either your Stripe balance or your PayPal balance to refund the payment. You can find more information about the different options in the Stripe DOCS.
PayPal fees are included in the Less fees sections of your Balance and Balance Activity reports at Stripe. They are not included in your tax invoice from Stripe. You can access these documents from your PayPal dashboard.
Minimum and maximum charge amounts
PayPal doesn’t have a minimum charge amount, but Stripe enforces the same minimum and maximum charge amounts for PayPal as for other payment methods.