PayPal Shopify Integration – How does PayPal integrate with Shopify
Last Updated | September 10, 2024
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You can now accept payments from customers using their PayPal account without requiring them to open another wallet or register on your site. PayPal on Shopify has made customers’ and merchants’ life easier by allowing pay-and-receive order payments without a hassle.
Payment processing is easy with Shopify Plus, and it only takes a few minutes for you set up the integration to accept these types of transactions through express checkout, where all they need to do when purchasing something online via credit card (or debit), are entering the name as well as email address before paying out backed by security.
PayPal’s security features make it an excellent choice for e-commerce websites.
Shopify, on the other hand, stores sensitive credit card information which hackers can use to commit identity theft or fraud to access your money!
Step-by-step PayPal Shopify integration method utilized?
With the same email account, you can use PayPal Checkout Express for your online store. The service is reliable and easy to navigate, so don’t hesitate!
This means that if someone has an official-looking or personal domain name they want their website registered under, then there’s no need at all to have two different accounts with this company as long as one of them has access already through either registering oneself or becoming a button user on behalf of another individual (which could potentially lead into more problems down the road), getting hired by them precisely because he needs help managing his eCommerce.
Folio3 does the PayPal and Shopify Integration from the following angles:
Step 1: Integrate Shopify with PayPal.
Step 2: Integrating Shopify PayPal with Guest Payments
Step 3: Include a Phone Number Section in Shopify and PayPal Express Checkout.
Step 1: Integrate Shopify with PayPal
To set up your PayPal and Shopify integration, Folio3 uses the following steps:
- Log in to your Shopify account and go to Payments > Settings.
PayPal Shopify – Shopify Settings
- Select PayPal Express Checkout from the PayPal Section.
- Click the Activate button to be taken to the PayPal login screen.
Shopify PayPal Activate Button for Shopify
- Sign in to your PayPal business account and choose the “I Give Permission” option.
- Select the Back to Shopify option.
In the Payment Authorisation area, pick the following two options:
Order payments should be captured automatically (Immediate Sale).
Capture money for orders manually (Authorize only).
- Click the Save button to finish the Shopify PayPal Integration. You may run a test transaction to see if the Shopify PayPal Integration is working correctly.
Visit the Shopify Help Center for further information on how to configure the Shopify and PayPal Integration on mobile devices or how to use the mobile app for the Shopify store. You can also hire certified Shopify experts or a Shopify integration company.
Step 2: Integrating Shopify PayPal with Guest Payments
The Guest Payments functionality in the Basic Shopify PayPal Integration enables you to accept payments from customers without having them create an account. To do this, follow these easy steps:
- Access your PayPal account.
- Select Account Settings from the Profile Icon in the top right corner of your screen.
- In the Products & Services area, click on the Website Payments option from the left side list.
- On your screen, you will see a selection of alternatives. Locate Website Preferences and choose the Update option.
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Shopify PayPal is an online payment method.
- Scroll down to the PayPal Account Optional area and turn the function on.
Customers may now pay directly using an additional checkout option without having a PayPal account.
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Step 3: Include a Phone Number Section in Shopify and PayPal Express Checkout
Shop owners can integrate the customer’s contact information into their Shopify Order Details by providing a Phone Number field during checkout. This section will appear under an order’s total value and shipping address on any online retailer site that integrates it, such as Amazon or Etsy! To add this feature, follow these easy steps:
- Log in to your PayPal Business Account first.
- Select the Account Settings option by clicking on the Gear Icon.
- Select Website Payments > Website Preferences > Update from the drop-down menu.
- Scroll down to the Contact Telephone Number area and choose one of the three options:
-
- On (Optional Field): This allows the consumer to input their phone number if they like.
- On (Required Field): Forces the consumer to input their contact information and finish the checkout process.
- When this option is selected, the contact information field will be eliminated from the checkout process.
Read Also: Affirm Shopify Integration
How to connect PayPal to Shopify?
When you create an online store with Shopify, they set up a PayPal Express Checkout account using the email address linked to your finances. Suppose that the same person already has another active payment processing system, like Regular A/C or Mobile Payments.
Those payments will go through immediately instead of waiting for standard delivery time after shipping orders out!
Step 1: Log in to Shopify
- Go to your Shopify admin dashboard: Open your Shopify account by logging in at shopify.com.
Step 2: Go to Payment Settings
- Navigate to Settings: On the bottom-left corner of your dashboard, click on Settings.
- Select Payments: Once in Settings, click on Payments to manage how you accept payments.
Step 3: Find PayPal in Payment Methods
- Locate PayPal Section: Scroll down to the PayPal section under “Payment Providers”. Shopify automatically includes PayPal Express Checkout as a payment method when you open your store.
Step 4: Activate PayPal
- Activate PayPal: If this is your first time using PayPal, you’ll see the option to Activate it.
- Log in to PayPal: A new window will open. Sign in to your PayPal account using your email and password.
- If you don’t have a PayPal account, you’ll need to create one at paypal.com.
Step 5: Authorize Shopify to Use PayPal
- Authorize the connection: After logging in, you need to give Shopify permission to use your PayPal account for payments. Click Agree and Connect to link them.
Step 6: Customize Settings (Optional)
- Adjust PayPal settings: Once connected, you can manage your PayPal settings in Shopify, like whether you want PayPal to be the primary payment method.
Step 7: Test Your PayPal Connection
- Test the setup: Make a small test purchase on your store to ensure PayPal is working properly and accepting payments.
What does the PayPal Shopify integration cost?
When selling goods and services in the United States, you only pay a percentage of what people purchase. Suppose they buy from your website or app. In that case, 2% goes to Paypal as their fee for use with this payment platform while 4%-6%, depending on where it comes into contact with in America -is added onto that total cost before being paid out again at settlement time (which could be any minute!).
When receiving payments via PayPal’s shopping cart system outside US borders, users will also have an additional charge applied according to currency rates fluctuating daily; these additions can vary.
Features |
Shopify Payments |
PayPal |
Cost and Fees |
Varies by plan |
2.4% – 2.9% + 30¢ |
User Experience |
Easy to install and use |
More complex, time-consuming |
Payout Schedule |
3 business days |
5-7 business days |
Dispute Resolution |
within 60 days |
up to 75 days |
Customer Support |
24/7 |
24/7 |
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Shopify PayPal – PayPal Contact Phone Number
- After selecting the On option, a contact number field will be shown when the consumer advances to the checkout page.
What are the benefits of the Integration of PayPal and Shopify?
There are several benefits of Shopify integration with PayPal, and some of them are listed below:
In only a few clicks, it transmits payments straight from a PayPal account to a business’s bank account, making it extremely simple to retrieve the money.
PayPal also offers a Seller Protection Program, which protects eCommerce vendors from suspected fraud or incorrect claims.
Because so many businesses use PayPal as an alternate payment option, a company may never have to deposit money into a commercial bank account. Instead, money may be transferred from one PayPal account to another through an online payment system.
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When conducting international commerce, which is frequent for many Shopify companies, PayPal will eliminate the need to convert one currency to another. PayPal swaps currencies instantly in-house, making it an excellent choice for eCommerce retailers.
What is the easiest way to Connect PayPal + Shopify?
Some of the ways of PayPal and Shopify integration have been discussed in this article. But the following is the easiest way to do it:
- Log in to your Shopify administration panel.
- Select Settings.
- Select Payments.
- Within the PayPal module, choose PayPal Express Checkout.
- Click the Activate button.
- Log in to your PayPal account and click I Give Permission after being brought to a PayPal login screen.
- Return to Shopify by clicking here.
- Select: Automatically capture payments for orders under Payment Authorization (Immediate Sale).
- Capture money for orders manually (Authorize only).
- Save the file.
How to Boost Shopify Dropshipping Sales With PayPal?
There are many Shopify and PayPal Shopify optimization solutions to boost your Dropshipping sales. Here are five methods to position yourself for success with PayPal in your Shopify dropshipping business.
Begin by opening a PayPal Business account
Even if you have a personal PayPal account, you should register a separate PayPal Business account for your business. You can also hire a company that provides Shopify store design services that can create a business account for you. Fill out all relevant information about business ownership, stakeholders, and legal facts.
This is the first step in developing a strong seller profile with PayPal. It’s a good idea to submit information like financial documents and bank statements ahead of time. This allows PayPal to determine that you run a legitimate, well-managed firm.
Financial partners, same as Shopify partners, exist, such as banks, and do risk assessments on all organizations. PayPal operates in the same manner. If your new dropshipping business is successful and PayPal does not have any information, it will require you to supply it. This may cause delays at a time when you should be focusing on providing for your consumers.
Shipment communication should be excellent
Good customer service and a smooth shipping process is key to maintaining happy customers.
“One of the main problems that drop shippers face is that they are often shipping from China, and delivery time will be at least 10 days,” he explains. “But customers in the US are now used to same-day deliveries. So, they will wait maybe 5 days, then go straight to PayPal and register a dispute or a chargeback.”
The challenge for drop shippers is that, in these situations, customers will often go directly to PayPal rather than contact the seller first, so drop shippers don’t have an opportunity to explain the situation or address customers’ concerns.
Always provide clear and accurate information about delivery times to minimize these situations.
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Using reputable and well-known shipping companies (such as DHL, UPS, FedEx, and others) may enhance your delivery service and boost client confidence.
Always offer clients a tracking ID number so they can know where their delivery is, and, of course, process orders and dispatch things the same day they are received.
Sell high-quality goods from dependable sources
Another important cause of client complaints and disagreements is product quality.
Many drop shippers never see the items they sell, but if you want to create a significant business, you must be confident in the things you offer.
The first step is to inspect samples of the items you intend to offer in order to understand their quality, features, and functionality. If the things you sell are of excellent quality and satisfy the expectations of your clients, you will gain a good reputation and repeat customers over time.
Next, on your website, always utilize precise and comprehensive product descriptions. Because online shoppers cannot see or feel the things you offer, include detailed descriptions that contain all important information, such as materials (wool, silk, etc.), functions (for electronics and tech equipment), measurements, battery needs, and so on.
When displaying a product, always utilize high-quality photos and videos. Images are very strong on social media, so take the time to showcase your items to their full potential.
Choose reputable suppliers with high ratings and positive comments from sites such as Alibaba / 1688.com, Salehoo, and Ecomhunt, and carefully review the profiles and ratings of potential suppliers.
Building ties with a limited number of reliable vendors is preferable to switching providers frequently. Establishing formal agreements or contracts with your providers will help you guarantee that you have agreed-upon service levels.
Always follow PayPal’s Acceptable Use Policy (AUP). PayPal prohibits using its services for certain goods transactions (for example, narcotics, cigarettes, ammunition, and firearms). Other items and services require PayPal pre-approval. Always double-check that the items you propose to offer are in accordance with the AUP.
Spend money on customer service
Complaints, disputes, and chargebacks may all be detrimental to your business. Not only will you lose clients and establish a bad online image, but your account may be limited if the number of chargebacks and disputes registered on PayPal becomes too high.
Responding immediately to all queries, complaints, disputes, and chargebacks is critical to avoid escalation. To do this, you must have solid customer service practices in place, as well as an appropriately sized workforce.
The following pointers will assist you in dealing with consumer inquiries and concerns as promptly as possible:
Make it simple for customers to get in touch with you. Include contact information on your website and make it easy to discover. Use an online contact form and, if possible, provide live chat help.
Set a service level to ensure all customer communications are handled within a specific timeframe. The longest allowable duration should be 24 hours – sooner is preferable.
Consider employing automation tools to collect client inquiries from various channels (e.g., Facebook, Instagram, website, email, and so on) and deliver initial, automated answers when appropriate.
Be a person. When responding to complaints, it’s easy to seem robotic, but resolving inquiries and complaints in a compassionate, genuine manner may assist in defusing situations and avoid customers from turning their issues into formal disputes.
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Best PayPal and Shopify Integrations that you must know
PayPal is simple to incorporate into Shopify
Connecting PayPal to Shopify is a simple process that takes only a few steps. Furthermore, it includes thorough documentation in Shopify, Elon Musk, and Peter Thiel’s payment gateway.
The first step in connecting them is to sign in to Shopify, then go to Settings, then Payments. Then we pick PayPal Express Checkout, click Activate, and click Give Permission on the gateway’s login screen.
Returning to Shopify, we choose Automatically Capture Order Payments and Manually Capture Order Payments in the Payment Authorization area.
Finally, we press the Save button to save our modifications.
Synonym for effectiveness and broad reach
The conversion rates of this gateway are one of the secret assets of PayPal for most e-commerces (which benefits them considerably).
In certain situations, up to 87.5 percent! Given that the shopping cart abandonment rate is roughly 70-90 percent and that one of the contributing causes is the usage of inferior payment alternatives, this PayPal benefit should entice Shopify retailers.
On the other hand, PayPal has a massive reach in addition to its effectiveness.
Its consumers come from over 200 nations and utilize up to 25 currencies. They can all be simply translated to the local currency and processed using debit and credit cards, thanks to PayPal.
A positive for e-commerce is the Seller Protection Program
On the other hand, Paypal offers an intriguing Seller Protection Program, which analyzes data and transactions in real-time.
There might be a variety of drawbacks for vendors in e-commerce. For example, if a user made a payment through PayPal and then filed a complaint with the platform about an unlawful transaction, the PayPal staff can arbitrate between the two parties and determine if the transaction fits the standards.
PayPal thereby helps excellent business practices while harming dishonest e-commerce.
However, PayPal also aids in the fight against credit card fraud. This gateway examines cancellations for suspected fraud or incorrect claims and examines unlawful transactions.
There are no setup fees. However, there are transaction fees
PayPal’s Shopify commissions are unfamiliar, particularly to newbies to e-commerce. When analyzing the total payments received, they are frequently discovered as a surprise.
All payment gateways charge a commission and an extra fee for each transaction executed. It is part of their business strategy, and e-commerce sites embrace it as a normal component of their services.
But how much does it cost to use PayPal with Shopify? The costs for using this payment channel vary by country. For establishments with a turnover of less than 2500 EUR in Europe, for example, 3.4 percent and a fee of 0.35 EUR per transaction apply (payments processed by PayPal).
If the number of payments handled by PayPal is between 2500 and 10,000 euros, the commissions are reduced to 2.9 percent, with a fee of 0.35 euros per transaction, and so on. Commissions vary and are quite comparable for vendors in the United States and other nations.
PayPal has a very handy rate calculator available on this site due to uncertainty among some sellers: paypal.com/en/webapps/mpp/accept-payments-online. Easily and quickly calculate PayPal costs when sending or receiving money through the Shopify PayPal calculator.
However, it is worth noting that connecting PayPal with Shopify is completely free, with no hidden fees.
This implies that the online business does not need to invest anything because it only pays PayPal when a transaction is completed. A method that is fair and reasonable for all sides.
PayPal is one of the hundreds of payment channels available on Shopify
Due to the enormous number of online consumers who choose this payment method, integrating PayPal with Shopify is a prudent and required investment. Is it, however, the greatest option for an e-commerce site?
Payment options compatible with Shopify are dependent on third-party providers, and as a result, commissions vary greatly.
In the case of PayPal, retailers must pay 3-5 percent of the base plus an extra transaction charge, as defined. Other Shopify-compatible payment gateways, on the other hand, charge substantially lower costs.
2Checkout, Skrill, Stripe, and WorldPay are simple to incorporate into Shopify, and their transaction fees do not significantly impact e-commerce profits.
Stripe, one of the sellers’ favorites, charges 1.4 percent for every transaction when connected with Shopify, with an extra price of 0.25 euros.
2Checkout, on the other hand, charges 2.4 percent for each transaction plus an extra fee, not to mention currency conversion fees.
As a result, there is a lot more to life than PayPal.
However, even if your e-commerce commissions are not the lowest, utilizing PayPal with Shopify is advised owing to the high demand for this payment method in e-commerce.
What are the PayPal and Shopify integration features that Folio3 implements?
If you are looking to hire Shopify developers, many companies provide Shopify optimization solutions, and Folio3 is one of them. Folio3 provides various solutions like Shopify website development, Shopify optimization solutions, Shopify data migration, and Shopify integration services.
Following are the features which Folio3 implements for PayPal and Shopify integration:
- Flat rate pricing structure (no setup fee, but transaction fee)
- Great Reach and turnout efficiency
- Seller protection
- Very easy and intuitive user interface.
- Increased drop in shipping sales.
FAQs
Is PayPal good for e-commerce with Shopify?
Payment options compatible with Shopify are dependent on third-party providers, and as a result, commissions vary greatly.
In the case of PayPal, retailers must pay 3-5 percent of the base plus an extra transaction charge, as defined. Other Shopify-compatible payment gateways, on the other hand, charge substantially lower costs.
But it has several advantages, like being easy to use, exchanging numerous currencies, and good boost dropshipping, which separates it from other integrations, so yes, it is good to use.
How does PayPal do Shopify inventory management?
PayPal allows you to tailor product availability across all your sales channels from a single dashboard.
With PayPal, you can keep track of your supply chain, from buy orders to sales orders.
In Shopify, where would I find PayPal express checkout?
To find Paypal express checkout Shopify; log in to your Shopify account and go to Payments > Settings.
Go to Shopify Settings from PayPal Shopify, and here you will find the PayPal express checkout option to activate your Shopify store.
How to capture PayPal payment Shopify?
Tap Orders in the Shopify app. To collect a payment, tap the order you want to pay for. Tap CAPTURE PAYMENT on the order details screen. Enter the amount that appears in the Amount to capture field on the Capture payment screen if you wish to capture less than the complete payment amount.
What is PayPal Pay in 4 in Shopify?
You can pay for your order with PayPal Pay in 4 installments to spread the cost into 4 interest-free payments. When you make your purchase, the first installment is payable. Following your initial installment, the following three installments are required every 14 days.