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A Brief Guide To Magento PayPal Integration

Published on October 10, 2019 - Content Updated on

5 Min Read
How to setup paypal in magento

PayPal is one of the most popular payment processing company that offers fast and secure ecommerce payment solutions. By integrating PayPal with your Magento ecommerce store, you can receive payments globally using both PayPal and credit cards. In short, it is an all-in-one solution that benefits both you and the online shoppers.

The good news is that Magento 2 PayPal integration with your ecommerce store is super easy. The steps are simple to understand and you could have the setup integrated within minutes. If you don’t have a Magento store set up on Cloudways, click below and signup right now.

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Configuring PayPal in Magento 1

Magento has rolled out to versions: Magento 1 and Magento 2. Since most people are still using the older version i.e. Magento 1, I have provided the tutorial for that below. Read on to know Magento 2 PayPal integration with your ecommerce store.

First of all, login to your Magento admin panel.

Magento Admin Panel

Navigate to System > Configuration.

Magento Configuration

In the left panel under the Sales menu, tap Payment Methods.

Magento Payment Methods Backend

Now, expand the Merchant Location section, select your Country from the drop-down menu. Make sure this matches with the country that you have selected for your Magento 2 PayPal setup.

Magento Merchant Locations Backend

Next, under the PayPal All-in-One Payment Solutions section, there are three PayPal bundles available for configuration. Choose any one from them.

Magento Payment Solutions

Tap the Configure button in front of the PayPal Payments Standard tab that also includes PayPal Express Checkout.

Magento Paypal Express

Expand Payments Standard under the Required PayPal Settings section, view all the available configuration options for PayPal.

Magento Payment Setting

Now, enter the Email Address in the first field that is associated with your PayPal merchant account. Second, add all the other required fields such as selecting API Authentication Method, API Username, Password, and Signature. You can also set the Sandbox Mode to Yes, if you are going to use the credentials from your PayPal sandbox account.

After entering all the necessary information, change Enable this Solution to Yes and hit Save Config button.

Tap the Configure button again and expand the Basic Settings of the Magento PayPal integration module. Under this configuration:

Magento Payment Basic Setting

Let’s see what all these labels mean.

Title: Enter the title for the PayPal payment method.
Sort Order: Enter a number to sort this method on the Magento checkout page.
Payment Action: Select either Authorization or Sale. Authorization will approve purchase but hold the funds; Sale will immediately draw the purchase from customer’s account.
Display on Product Details Page: Select Yes because this brings a trust factor between you and your customers.

Next, click on Advanced Settings to expand it and set the below settings:

Magento Payment Advance Setting

Payment Applicable From: Set All Allowed Countries.

Debug Mode: Set No to disable debugging.

Enable SSL verification: Set Yes to use the secure layer of SSL.

Transfer Cart Line Items: Set Yes to transfer cart line items.

When completed, hit the Save Config button to complete the Magento 2 PayPal setup.

Configuring PayPal in Magento 2

Magento 2 is the latest version of Magento open source ecommerce platform. Our recommendation is that you should switch to Magento 2 if you are using Magento for your ecommerce store.

First of all, login to your Magento 2 admin panel.

Magento 2 admin panel

Navigate to Stores > Configuration.

Magento Configuration

In the left panel under the Sales menu, click Payment Methods.

Magento Sales menu

Click on Configure to set PayPal as your payment method.

Magento Configure Paypal

The configuration process is similar to Magento 1 that I have already explained above.

In the recent release of Magento 2.3, there is an additional feature in which you can advertise your PayPal credit.

Advertise PayPal Credit

Through advertise PayPal credit your customers have more time to pay, while you get paid up front at no additional cost to you. PayPal’s free banner ads that let you advertise PayPal Credit financing as a payment option when your customers check out with Magento PayPal extension.

Advertise PayPal Credit

The feature helps you advertise their credit on Home Page, Catalog Category Page, Catalog Product Page and Checkout Cart Page with following fields:

Magento PayPal configuration

  • Either you want to Display the banner on that page or not
  • Define the Position of the banner either on Header (center) or on Sidebar (right)
  • Specify the size you want to allocate for the banner

Once you have properly configured Magento PayPal configuration, you will be ready to accept payments through Paypal on your Magento store.


The Magento PayPal configuration is easy and will add convenience to your customers, even for the customers who do not have a PayPal account. They can still purchase items through a safe and secure checkout method. In either case, the Magento PayPal integration will help you boost your store’s sales and conversions.

If you need any further help with Magento PayPal extension, you can contact me directly through email or post a comment below.

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Fayyaz Khattak

Fayyaz, a passionate Motorbike tourist, works as a Team Lead — Magento Community at Cloudways - A Managed Magento Hosting Platform. His objective is to learn & share about PHP & Magento Development in Community. You can contact him at [email protected]


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