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How to Set up PayPal for WooCommerce Stores

November 22, 2021

8 Min Read
PayPal for WooCommerce

Digital commerce is made possible by online payment gateways. If this component is working smoothly, the rest of the issues can be worked out with minimal headaches.

The good part is that the number of reliable payment gateways is small enough to make it easier for you to choose your preferred payment gateway. In fact, if you are new to WooCommerce or similar platforms, experts suggest you stick to PayPal because of two simple reasons: It works and it works great almost everywhere.

In this article, I am going to show you how you can integrate PayPal with WooCommerce and simplify payment processes for your customers.

Let’s get started!

Why Use PayPal Payment Gateway?

As a WooCommerce store owner, you have the choice of several popular industry-leading payment gateways including Stripe, Skrill, PayPal, and many more. So why PayPal? Well, according to the official stats, around 19 million merchants rely on PayPal to build, run, and grow their business. Customers all over the world trust PayPal with their financial information such as credit card details and banking information.

Features & Benefits Using PayPal

  • PayPal is safe and free!
  • Easy onboarding with WooCommerce
  • Easy installation and integration
  • A simple guide on connecting PayPal with WooCommerce store
  • Security is handled by PayPal

PayPal Sandbox Account

Very often, it happens that the WooCommerce store is up and running with the inventory uploaded and all the extensions in place along with the payment gateway but you haven’t tested it yet because there is no way of doing it other than carrying out an actual transaction.

PayPal provides a PayPal Sandbox Account that is a safe and isolated environment for testing gateway operations and ensuring that everything is working as intended.

In this article, I will take you through the process of setting up a PayPal Sandbox account and integrating it with your WooCommerce store.

Login to the PayPal Developer Website

To set up the Sandbox Account, go to the PayPal developer website. In the top-right section, click the Login into Dashboard button.

PayPal Login Dashboard

On the next screen, you can either set up a new PayPal account (click the sign up button) or log in to an existing one with the associated email address or phone.

PayPal Signup

For the purpose of this article, I will set up PayPal for WooCommerce. When creating a new account, you have the choice of opting for either a Business or a Personal account.

  • Personal Account is good for end-users who want to use PayPal for online shopping and similar activities.
  • Business Account: is ideal for merchants who want to integrate PayPal as a payment gateway for their stores.

Since I am demonstrating WooCommerce PayPal integration, I will opt for a PayPal Business account.

Business Account

Next, enter your email address, and click the Continue button.

Sign up for business account

That’s it. You have successfully created your PayPal sandbox account.

The next major step is to connect PayPal to WooCommerce store.

WooCommerce & PayPal Integration

With a fresh WooCommerce installation, the default payment options are:

  • Direct Bank Transfer
  • Check Payments
  • Cash on Delivery
  • PayPal Standard

The first three options are offline but the PayPal Standard is a standard digital option used by numerous online stores around the world.

Managing the PayPal related operations on the WooCommerce stores, you can use one of the several popular and highly functional PayPal for WooCommerce extensions that add great value to your WooCommerce store.

I think before going deeper into how PayPal Standard adds value to the store, it is a good idea to go over some of the popular PayPal extensions. Note that the following list reflects my opinion. If I have missed out on your favorite extension, do mention it in the comments.

  • WooCommerce PayPal Powered by Braintree Payment Gateway
  • WooCommerce PayPal Checkout Payment Gateway
  • Angell EYE-PayPal for WooCommerce
  • WP Easy PayPal Payment Accept

WooCommerce PayPal Powered by Braintree Payment Gateway

WooCommerce PayPal Powered by Braintree Payment Gateway

This WooCommerce PayPal plugin/extension is powered by Braintree. This extension simplifies the store payment processes and the users can pay for their purchases through debit cards, credit cards, and PayPal funds.


Some of the most important features of this plugin are:

  • This plugin support Subscriptions & Pre-Orders plugins
  • You can add multiple merchant IDs to support multi-currency when used with a currency switcher
  • It can support 3D Secure (with an enabled Braintree account)
  • Supports Braintree Advanced Fraud tools and Kount Direct (if enabled)

WooCommerce PayPal Checkout Payment Gateway

WooCommerce PayPal Checkout Payment Gateway

This is the official WooCommerce PayPal Checkout plugin with over 800,000 active installations. Security is the strong suit of this plugin. Since this is an official plugin, WooCommerce PayPal setup is very easy and straightforward.

PayPal Plus for WooCommerce

PayPal Plus for WooCommerce

PayPal plus for WooCommerce is another great extension that allows smooth integration of all PayPal Plus payment methods (PayPal, Credit card, Direct debit and Pay upon invoice)  into your WooCommerce stores.


This plugin has a host of features including:

  • Set up faster payments with the Express Checkout button
  • The PayPal checkout is fully responsive and very userfriendly

PayPal Buy Now Button

PayPal Buy Now Button

This plugin allows your users to pay for products and services by using the PayPal Buy Now button. You can place this button anywhere on your store to customize your payment processing flows.


In addition to standard features, the plugin offers:

  • The process of creating the buy button is simple: just need to fill the name and price and the button is ready for deployment.
  • Four different PayPal button designs and sizes available
  • Apply a fixed discount and per item discount rate

All the above-mentioned extensions work well in their role. For the purpose of this article, I will show you how to host a WooCommerce application and I will go with the default WooCommerce PayPal option to walk you through the WooComerce PayPal integration process.

Host WooCommerce on Cloudways Server

If you are a new user then you need to signup for Cloudways.

Want to Test Your Changes on Free Staging URLs?

Try Cloudways managed WooCommerce hosting for a hassle-free experience.

cloduways signup

Next, you need to verify your account and complete the signup process. Once it’s done, you will see a Launch button that will let you launch your server and host your WooCommerce store on a cloud server.

launch server

Next, click on the Launch button and choose WooCommerce from the Application drop-down list and fill the application & server name field.

woocommerce application

Next, select your server type, server size, and server location for your WooCommerce store. Please note that the recommended server size for the production WooCommerce store is 4 GB or higher. 1 GB or 2 GB can be used for staging or testing purposes.

wocommerce app launch

Next, click on “Launch” and in a few minutes, your WooCommerce store is ready.

Integrate PayPal With WooCommerce

Cloudways is a varnish compatible WooCommerce hosting platform with smooth performance and high security. As a result, your visitors have a great experience at your store.

Now, go to your WordPress admin dashboard, navigate WooCommerce > Settings > Payments.

WooCommerce Settings

Next, enable the PayPal option and click the Manage button.

PayPal Manage Settings

Configure your Settings

Under the settings, you can see some of the options which you now need to configure.

  • PayPal Configuration
  • Advanced Options
  • API credentials

PayPal Configuration

PayPal Settings

Enable/Disable: If you want to use this payment gateway make it “Checked”

Title: Add title which you wanna show to your customer during the checkout page

Description: Here you need to add the description

PayPal Email: Add your PayPal email address which you have signed up previously

Advanced Options

Advanced Options

PayPal Sandbox: Check for testing / Unchecked for a live website.

Debug log: Check the box if troubleshooting appear on your site otherwise leave unchecked

IPN Email Notifications: Check this option if you want to send notifications when an IPN is received from PayPal indicating refunds, otherwise uncheck.

Receiver Email: Here you can add main receiver email for your PayPal account

PayPal Identity Token: It’s an optional field that allows you to identify pending and successful payments without the need for PayPal IPN. To set up this option follow this guide Generate the PayPal Identity Token.

Invoice Prefix: Add the unique identify prefix which identifies the online orders. WC- is entered by default.

Shipping Details: Check if you want to send shipping details of your PayPal rather then billing details.

Address Override: If you want to verify the address then checked this option. We recommend to unchecked because it can cause errors.

Payment Action: You can see two options in the dropdown menu capture and authorize. Capture will cut off your customer payment immediately, without any sort of verification and authorize the payments manually before finalizing and completion.

Page Style: Here you can add the page style, it’s an optional

Image URL: It displays the logo of your website again it’s an optional

API credentials

Api Credenticials

You can add the PayPal API credentials here. For more details follow a simple guide to PayPal API Credentials.

  • Sandbox API Username: You can add your API username here
  • Sandbox API Password: You can add your API password here
  • Sandbox API Signature: You can add your API signature here

Once done, click to the ‘Save Changes’ button and that’s it. You have successfully integrated PayPal for WooCommerce.

Final Thoughts!

That’s all folks. I hope by now you have a clear understanding of how PayPal for WooCommerce integration works and how can you set it up on your WooCommerce stores. If you have any queries regarding this tutorial feel free to mention via the comment section below.

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Saud Razzak

Saud is the WordPress Community Manager at Cloudways - A Managed WooCommerce Hosting Platform. Saud is responsible for creating buzz, spread knowledge, and educate the people about WordPress in the Community around the globe. In his free time, he likes to play cricket and learn new things on the Internet. You can email him at [email protected]


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