PayPal Checkout and how it works

Feb 20 2020 | PayPal editorial team

How to add seamless checkouts to your site for better sales conversion.
If you want to give your customers a smooth and uninterrupted shopping experience, PayPal Checkout is for you. This add-on allows you to receive payments securely while keeping shoppers on your website or mobile app throughout the process. A few clicks or taps is all that is needed. You can even customize the experience to ensure the shopping experience feels smooth and uninterrupted.

What is PayPal Checkout? 
PayPal Checkout integrates the checkout process onto your website to make payment quicker and easier for your customers. They have the option to pay using a preferred debit or credit card, or sign into their PayPal account to skip typing in their billing and shipping information. Like PayPal’s other payment solutions, there are no monthly or setup fees. You only pay when a sale is made.

How does PayPal Checkout work? 
When customers confirm their order, they are directed to a PayPal overlay where they can choose to sign in to their account if they have one. Once they have reviewed and completed their purchases, they’ll be brought back to your page. 

How do I get started?
Before you start, you will need to activate your accountOnce you’re done with this stepyou can begin the process of adding PayPal Checkout to your website. 

Step 1:  If you want to let your customers pay without a PayPal account, make sure you have the first option selected. 

Step 2:  Choose how you want to integrate payment onto your website. 

If you already have a shopping cart in place, follow the steps from the provider’s integration guides. Some of the partners we work with are featured below, with the full list in our directory. You can also try out a demo or check out our global community forums to see what others have done. 

Step 3: If you do not have a shopping cart, you can add the button directly into your website. 

Adding the PayPal Checkout button to your website will require some knowledge of API integration language. We have a guide for developers on how this can be done, that also shows how you can customise the look to suit your style.  

That’s it! You’re done. Start creating the checkout experience you want for your business with PayPal Checkout now.

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

Frequently asked questions.

An automatic payment authorizes a merchant to charge you whenever you make a purchase on their website without signing in to your PayPal account. This is something that is set up on the first checkout with the merchant. The terms of the automatic payment will be available in your PayPal account.

Finding your automatic payments on the PayPal app:

  1. Tap  Wallet.
  2. Scroll to the bottom and tap Automatic payments.
  3. ​Tap the merchant to view or update.
  4. You can update your preferred payment method or Remove PayPal as your payment method at the bottom.
Finding your automatic payments on the website:
  1. Go to Account Settings.
  2. Click Money, Banks and Cards.
  3. Click Set Automatic Payments.
  4. Select the merchant.
On this page, you can Cancel the automatic payment and Change the backup funding source.

Changing the payment method:

  1. Select your current payment method.
  2. Select a new payment method or click link a new card or bank.
  3. Click Save
Contact information for your merchant can be found in the automatic payment.

If you’re a merchant who needs to cancel a subscription for your customer:
  1. Click Pay & Get Paid.
  2. Click Subscriptions.
  3. Find your customer’s subscription to update.
You can use your PayPal account with Google pay in 3 ways: To make purchases at any in-store merchant that accepts Mastercard Contactless Payments, when shopping in an app, or when you use the Chrome mobile web browser to checkout.

In Store: When shopping in-store or through an app, Google pay uses your PayPal balance. If you don’t have enough money in your PayPal balance at the time of purchase, we'll automatically use your bank or debit card to add money in increments of $10 to your PayPal balance first to cover the purchase.

Chrome mobile web browser: If you’re using the Chrome mobile browser and check out using PayPal with Google Pay, you’ll be asked if you’d like to pay with PayPal. If you do, put your finger on your phone’s fingerprint scanner to complete the purchase. There’s no need to log in with your username and password, authenticate using your biometrics, and then pay with any of your available payment methods.

Online or in app: You can choose PayPal from within the Google Pay wallet anywhere you see Google Pay button. If you haven't added PayPal to your Google Pay wallet, you'll go through linking PayPal account to Google Pay.
PayPal offers various payment solutions to power up any business, whether you have a website or not. If you're a seller, you can upgrade your individual account to a Business account to enjoy more powerful features for business.

Here are a few payment solutions we offer:
  • Website Payments Standard: You can simply copy and paste our payment button code to your website to start receiving payments. It is mobile-optimized, and can be added onto an existing shopping cart to offer your customers secure transactions.
  • Express Checkout: An API-based solution that allows you to personalize your customer's checkout experience from start to completion. However, if you don't have an eCommerce solution or a shopping cart already installed, you'll need some knowledge of API programming to install Express Checkout on your website.
  • Invoicing: You can bill your customer directly without setting up your own website.
All these payment solutions have no setup or monthly fees, and the transactions eligible for our Seller and Buyer Protection policies are safeguarded by PayPal. You're only charged a fee when receiving a payment. Go to your local PayPal website for more information.

Note: To enhance your account safety and remove initial account limits, make sure to confirm your email address and verify your account.

Your Preferred Payment Method is the funding source that will be used when paying with PayPal. You can check your preferred payment method in your Account Settings. You can change your preferred payment method at any time.

Changing your preferred payment method on your PayPal account will not affect billing agreements, subscriptions, or recurring payments. You can update your payment preference on billing agreements, subscriptions, or recurring payments at any time in your account.

To change your preferred payment method:

  1. Go to Settings.
  2. Select 'Account Settings'.
  3. Below 'Business Profile', click Money, banks & cards.
  4. Next to 'Your preferred ways to pay', click Set for each of the options.
  5. Choose a payment method and click Confirm.

If you don’t have enough money in your preferred payment method, we'll ask you to choose a different payment method at checkout.

To make sure you’re using the payment method you want, check the 'Review Your Payment' page.


  • Once a payment has been sent to another PayPal account, the funding source cannot be changed.
The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.