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[Guide] How To Use PayPal With Shopify

Setting up a Shopify store is pretty straightforward. Nowadays, many people are trying their hand in these Shopify stores. There are also a lot of different methods through which people can get their payment from these Shopify stores. People often doubt how to use PayPal with Shopify, and today we’re here with a guide to help you with that.

Paypal is one of the most popular leading online payment services, used by many people around the world. To be precise, PayPal had 429 million active accounts as of March 2022, as per the last audit. This application makes payments directly from your account and into your account in just a few clicks.

Also, we have seen that many people are worried about adding PayPal to their Shopify stores because of the fees that can be accrued over a year, which will all add to the bottom line at the end of the year. Due to that reason, we have added the complete pricing list that PayPal charges its Business accounts at the end of this article.

If you have started an online website using Shopify, you must know how to set up the PayPal application.

How Do I Add Paypal To My Shopify Store? 

PayPal is automatically added to your Shopify store with the email address you use to create your store. If you have a PayPal account using the same same email address as your Shopify store, you will get your funds directly into that account.

Shopify automatically creates a PayPal express checkout when you specify your email. If you don’t have a PayPal account using the same email address as your Shopify store, then you can add the email address to your PayPal account.

You also need to upgrade your personal PayPal account to your business PayPal account.

Do You Need Paypal For Shopify?

It is not compulsory to use a PayPal account with your Shopify store. Shopify also consists of its payment method.

However, there are some added benefits to using PayPal with Shopify instead of using Shopify’s payment method, which is as follows:

Shopify’s payment method is only applicable to limited countries. There are also some other third-party payment gateways that you can use if you want to use PayPal.

Paypal also charges some percent of fees if you use it as your payment medium through Shopify. One of the most beneficial methods you can use for your Shopify payment is the direct payment mode of Shopify itself.

How Do I Add A Paypal Button To Shopify? 

To add a PayPal button to your Shopify store, you will have to go to your Shopify admin dashboard and then follow the steps given below:-

  • Click on the option called Online Stores.
  • Further, you have to click on the option called Themes
  • Find the theme that you want to edit
  • Click on the option called Customise
  • Click on the option called Product pages from the top bar drop-down menu.
  • Check the button called Show Dynamic Checkout Button
  • Finally, click on the option called Save

You will see the dynamic checkout button on your Shopify store. You will have to update your theme if you do not know any checkout button.

How Do I Add A PayPal Credit Button To Shopify? 

To add a PayPal credit button to your Shopify store, you will have to follow the simple procedure given below:-

  • First, you will have to log in to your Shopify admin panel
  • On your admin panel dashboard, you will have to click on the option called Online Store
  • Further, you will have to click on the option called Themes
  • Click on the ellipsis (…) option
  • Click on the option called Edit HTML/CSS
  • Go to the Layout option
  • Choose the tab of liquid
  • Now you will have to obtain your PayPal credit banner code from PayPal Financing.
  • Paste your PayPal Credit banner code into the template being edited.
  • Click on the option called Save.

Also Read: 2Checkout vs. PayPal in 2023 – Which is Better?

Step-By-Step Guide on HowTo Use PayPal With Shopify

How to use Paypal with Shopify

Using your PayPal account with your Shopify store can be a great decision. When you create your store on Shopify, a PayPal express checkout is automatically completed using the email address you used to create your Shopify store.

There is no need for extra effort when using PayPal as your default shopping option on Shopify. PayPal is a default Shopify payment application.

If you want to set up your PayPal account with Shopify, then you will have to follow the step-by-step procedure which we have mentioned below:

  • First, you must create an official Shopify account using the Shopify application.
  • You must also have an official PayPal account. If you have a personal PayPal account, you can upgrade it to a Business one.
  • You can also create a new PayPal account using the same email address as your Shopify account. Ensure that the email address in your Shopify and PayPal accounts is the same.
  • You now need to log in using your Shopify admin dashboard.
  • On your dashboard, you will have to click on the option Settings Tog present in the far left corner.
  • Now click on the option called Payment Providers.
  • A PayPal section will be displayed on your screen. Click on the option called Edit present in that section and then on the option called Deactivate.
  • A dialogue box will appear on your screen, and you have to again click on Confirm Deactivation. Your PayPal account will be reactivated.
  • Now, click on the option called Activate in your PayPal account section again.
  • Enter your password. You can now also change your PayPal address.
  • You can edit your account and also use a different version to accept the Shopify payment, and you can also use your PayPal account, which is already logged in to your browser.
  • Click on the Grant Permission option to activate your PayPal account, which is already logged into your browser.
  • A PayPal Permissions Page will be displayed on your screen.
  • Click on the option called I Give Permission.
  • To complete the setup, you must undertake a PayPal Test Transaction.

If you have the same email address in your PayPal account as your Shopify account, then you do not have to carry out any extra procedures.

Your PayPal account will be directly combined with your Shopify account, and you will now be able to use PayPal with Shopify.

You can easily make any transaction with PayPal, and if your customer is paying through PayPal, then the money will be directly transferred to your account without delay.

Related: How to Fight a PayPal Chargeback in 2023? (Manage Claims, Disputes, and Chargebacks!)

PayPal’s shipping and billing addresses

PayPal filled the billing address fields with the customer’s shipping address. By tapping on “Change”, the customers can edit the information.

PayPal works like this, and this cannot be changed or modified. Shopify can send only one address to PayPal. This particular address needs to be the shipping address for regular PayPal payments.

This is because already the billing address is possessed by PayPal. Shopify cannot know ahead of time whether a customer has a PayPal account or not. Therefore, the billing address cannot be sent by Shopify, like when a customer uses a credit card for payment instead.

Paying without a PayPal account

With PayPal Express, customers are asked to log in to a PayPal account or make a PayPal account. However, guest payments can be enabled to let the customers make payments using a credit card even if they do not possess a Paypal Account. You will have to link your credit card to the PayPal Business account you own to enable this feature.

You will have to modify your PayPal account settings to enable guest payments.

The necessity of phone numbers

Phone numbers are required for the Paypal Express checkout orders. However, if you rely on having your customers’ contact information and make use of PayPal Express, you may have noticed that the phone number is not contained on the order details page.

We also suggest you keep all the records of your customers, such as their full name, email address, location as well as even phone number to remain in compliance with the different operation standards around the world.

It is also helpful to ask for your customers’ numbers so that it can be easier for you to retarget them via that mode of contact.

To add the phone number section to the checkout, get in touch with the support team of PayPal.

PayPal for automatic billing

When PayPal Express is activated on your store, PayPal is asked by Shopify for the approval of reference transactions on your behalf of you as soon as it finds out that you are making use of an app actively that automatically charges the customers.

If you are not approved for reference transactions with PayPal, and a customer causes the order with a subscription, Shopify will hide PayPal during the checkout.

In case you use a post-purchase upsell app, PayPal will be shown by Shopify as a payment option during the checkout, even if you are not approved yet for reference transactions with PayPal. However, the customers will not be shown the post-purchase offers.

To check whether you have been approved or not, you can review the request’s status on the payments page of the Shopify Admin.

PayPal will contact you through email when you are approved for reference transactions. If they require more information, they may get in touch with you before agreeing. After getting approved, Shopify shows PayPal as a payment option on the store when the customer orders something with automatic billing.

Also, PayPal may deny you reference transactions; in that case, PayPal will not notify you in any way.

PayPal Business account fees

You do not need to incur setup fees for your PayPal business account. The account can be created for free.

You can link your credit card or bank account to accept 25 currencies from 202 nations. PayPal Express is a payment gateway for Shopify merchants and can easily integrate into the store.

PayPal product
Per-transaction rate
Per-transaction fee
Digital payments (invoicing, checkout, pay with Venmo and other commercial transactions)
Send/receive money for goods and services
Standard credit/debit card payments
Charity transactions
Alternative payment methods
PayPal Here (legacy offering for in-person payments)
Card present or QR code
No fee.
Zettle (for in-person payments)
Card present or QR code
QR code transactions
Over $10
Under $10
Online card payment services
Advanced credit/debit card
Per transaction rate is 3.5% for AmEx.
Payments Advanced
$5 monthly fee.
Payments Pro
$30 monthly fee.
Virtual terminal
Per transaction rate is 3.5% for AmEx. There is also a $30 monthly fee.

Making use of Shopify payments and PayPal Express

While making use of Shopify payments in the store for accepting credit card payments, you will have to pay credit card fees for every transaction based on the plan.

You will only need to pay the costs for the payment gateway the customers use for checking out. You will never be double-billed. 

James Miller
James Miller
I am passionate about technology and writing. I have 10+ years of experience in working with different digital media companies. If you have an interesting story, please feel free to send a mail to james@ecommercenext.org

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