FAQ

How To Set Up PayPal On Shopify

Last modified: December 23, 2025

PayPal is one of the most popular payment gateways online. Not only is it used by companies to collect payments, customers also like to use the software to manage their finances and pay for goods. In addition, PayPal allows for payments to be made via debit and credit cards, so it’s a versatile payment gateway.

PayPal is also one of the default payment modes on Shopify. Setting it up for your store is one of the easiest things you can do.

When it’s enabled, customers can select PayPal on the checkout to complete the transaction. And customers won’t need to leave your website, they will complete the transaction, via PayPal, while still on your store.

However, it should be noted that you will be charged for any transaction that’s handled from PayPal. The transaction charge will depend on your currency, your monthly revenue and the order value.

However, PayPal also offers benefits to you and customers that makes it one of the top payment gateways online.

Key Takeaways

Offering financing options like PayPal Pay can attract more customers and boost sales by providing flexible payment alternatives.

Access PayPal settings via Shopify Payments to initiate the setup process.

Perform test transactions to ensure the PayPal setup works seamlessly before going live.

How To Set Up A PayPal Account On Shopify

Step 1: Log Into Your Shopify Dashboard

First, log into your Shopify dashboard using your log in credentials.

Step 2: Shopify Payments

Move to the payments screen, labeled as ‘Shopify Payments’ in the dashboard and within this screen click on the ‘Edit’ button in the PayPal section.

Step 3: Deactivate

On the dialogue box select the ‘Deactivate’ button. You will need to confirm the deactivation again by selecting ‘Deactivate’ when prompted.

Step 4: Select PayPal Account Type

Then find the drop-down menu in the Accept Payment section. Choose the type of PayPal account you currently have. Then you should click on the ‘Activate’ button.

Step 5: Enter Details

Enter your PayPal account email address. Click on the ‘Next’ button to proceed. You then need to enter in your PayPal account password and select the ‘Log In’ button.

Step 6: Give Permission

If you’ve not set up a PayPal account before, you will be given a ‘give permission’ screen. Read the text and then select ‘I Give Permission’. If you’ve already created an account with PayPal, this screen will be skipped.

Step 7: Finishing

Once you’ve confirmed, you can navigate back to your Shopify Payments page. Your PayPal account is now connected and you can accept payments through PayPal.

It is also highly recommended that you carry out a couple of test transactions before going live on your site. This can be done through a test facility on PayPal.

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FAQs

How can I offer PayPal Credit to my customers on Shopify?

To offer PayPal Credit, ensure your PayPal account is a business account based in the U.S. Customers will then see the option to pay via PayPal Credit at checkout. It’s a great way to increase conversion rates by offering flexible payment options to your customers.
What are the transaction fees associated with using PayPal on Shopify?

PayPal charges a fee per transaction, which varies depending on the country and the total sales volume. It’s essential to review PayPal’s fee structure regularly to be informed about the costs associated with each transaction and plan your pricing strategy accordingly.
How can I ensure the security of transactions when using PayPal on my Shopify store?

With PayPal, transactions are encrypted and monitored to prevent fraud and identity theft. Ensure your PayPal account is verified and regularly update your security settings. Utilize PayPal’s security tools like fraud filters and security key features to add an extra layer of protection.

Enhancing PayPal Integration on Shopify

Advanced PayPal Setup

We have been in the digital marketing and development space for years, and we understand the nuances of integrating payment gateways like PayPal with e-commerce platforms like Shopify.

While the basic setup is straightforward, there are advanced steps to ensure a seamless transaction experience for your customers. For instance, enabling guest payments is a crucial step that allows customers to pay with their credit card without having a PayPal account.

This can be activated by linking a credit card to your PayPal business account and adjusting the settings.

Automating Billing Agreements

PayPal offers a feature for automatic billing, essential for subscriptions or post-purchase offers. Shopify requests PayPal for Reference Transactions approval on your behalf when it detects the use of apps that charge customers automatically.

Ensuring that this feature is activated can enhance the customer’s shopping experience and streamline your revenue collection process.

Common Issues and Solutions

Some common issues with PayPal integration include activation errors and business account requirements. We recommend ensuring that your store’s country matches your PayPal account and upgrading to a business account to avoid these issues.

For errors related to Invoice ID, changing the order ID format by adding a prefix or suffix can be a viable solution.

Optimizing PayPal for Business Growth

Verification and Trust Building

We always emphasize the importance of trust in e-commerce. Verifying your PayPal account is not only a requirement but also a step towards building trust.

Connecting the same email address for both your Shopify store and PayPal account can minimize payment holds and disputes, ensuring smooth transactions and positive customer experiences.

Tracking Number Synchronization

By default, Shopify order tracking numbers do not automatically appear in PayPal transaction details.

Synchronizing these numbers is essential for validating order details in case of disputes or chargebacks, and it facilitates the quicker release of PayPal funds.

Offering Financing Options

In the competitive e-commerce landscape, offering financing options can give your store an edge. Although Shopify does not directly support PayPal Pay in 4 financing buttons and marketing materials, custom code or third-party apps can be employed to integrate this feature, enhancing the flexibility of payment options for customers and potentially boosting sales.

Conclusion: How To Set Up PayPal On Shopify

If you want more help with PayPal, then you can always use the free PayPal app here.

Written by:

Lindsey Perry

I have 5+ years of experience with Shopify and 15+ years of experiences on other eCommerce platforms. My theme reviews are designed to help store owners find the best theme for them.