How to Set Up PayPal on WooCommerce

Connect a PayPal account

Once the WooCommerce PayPal Payments plugin has been installed and activated, it needs to be connected to your PayPal account.

The integrated onboarding connects a PayPal account via login credentials (email and password) without the need for API credentials. The onboarding automatically creates a new REST application in the PayPal developer site, registers the webhooks, and enables relevant features such as Vaulting. If desired, the account can also be connected manually.

1 After installing and activating the WooCommerce PayPal Payments plugin, go to WooCommerce > Settings.

2. Click the Payments tab.

3. The Payment methods list will include two PayPal options.

4. Click Set Up (or Manage if the extension is already active) next to PayPal. (not PayPal Standard).

5. The Account Setup section presents different options for the onboarding process:

  • Enable PayPal Payments — includes PayPal, Venmo, Pay Later — with fraud protection
    • This setting is required as PayPal Payments automatically offers eligible payment methods and you can hide specific funding sources once the onboarding process is completed.
  • Securely accept all major credit & debit cards on the strength of the PayPal network
    • Enables or disables credit card functionality, which can be changed after onboarding. If enabled, PayPal Payments offers two different credit card processing options:
    • Standard Card Processing:
      • PayPal manages card transactions with a user-friendly, pre-built experience, streamlining compliance requirements for all business and personal seller accounts.
    • Advanced Card Processing:
      • Only available in selected regions. PayPal acts as the payment processor for card transactions. Card fields are fully customizable and provide optional features like Vaulting or Chargeback Protection for more security. Additional vetting by PayPal is required and prompted automatically during the onboarding.

6. Choose Standard Card Processing or Advanced Card Processing to enable credit card functionality during onboarding.

7. Activate PayPal by clicking the button and following the prompts and connecting an existing live PayPal account. Or when creating a new site, click Test payments with PayPal Sandbox to test the integration in the PayPal Sandbox. If you don’t have a PayPal account yet, you can create one from the activation window.

8. After completing the connection steps, navigate to the Standard Payments tab and ensure the checkbox next to Enable/Disable is checked.