PayPal for Marketplaces: Setup

Learn how to enable and configure the PayPal for Marketplaces payment method in your store.

Olga Tereshina avatar
Written by Olga Tereshina
Updated over a week ago

The "PayPal for Marketplaces" payment method is a part of the PayPal add-on. So please make sure it is installed and enabled in your store:

To add "PayPal for Marketplaces" as a payment method:

  1. Open the payments listing page in your store’s Admin area (Store Setup > Payment Methods) and click Add payment method:


  2. Locate the method "PayPal for Marketplaces" in the popup and click the Add button opposite its name:


  3. After that, configure the payment settings:


    Your Account Settings:

    • PayPal For Marketplaces account email: Specify your e-mail registered for PayPal for Marketplace account.

    • PayPal API Client ID: Specify your login to PayPal sandbox or live account.

    • PayPal API Secret: Specify your password for PayPal sandbox or live account. Sandbox accounts are used for testing purposes only. Live accounts are used to process live orders.

    • PayPal Partner ID: Specify the Partner’s business account log-in.

    • PayPal BN Code: Specify a unique build notation (BN) code you’ve got from PayPal as a Partner. If you do not have a BN code, contact your PayPal account manager. BN codes provide tracking opportunities within the PayPal system on all transactions originating or associated with a particular Partner (for revenue sharing).

    Additional Settings:

    • Payment descriptor: Specify the payment descriptor on the buyer's credit card statement of account activity.

    • Test/Live mode: Select the payment method operation mode.

    • Order id prefix: A prefix added to the IDs of all the orders originating from this store to make them unique. This value is required only if you use your PayPal account with more than one store.

    • Disburse funds: Select Delayed if you need an option to authorize the earnings transfer to the vendor’s account and Immediate if no pre-authorization is required.

  4. Save the configuration settings.

    You can connect an additional PayPal Business Account to your X-Cart if required:


    Click the Connect to PayPal link to access PayPal and sign in using a different PayPal account. Your online store will use this additional account to get shipping costs (if you ship out goods on behalf of vendors), earnings on the products you own (if you are one of the sellers), and earnings on the sales of the vendors who have not set up a PayPal Business account for some reason.

    If you don't configure this option, and there is a vendor without a setup PayPal Business account, buyers will not be able to pay orders with PayPal if they contain products from such vendors.

  5. Make sure the new PayPal for Marketplaces payment method is active.

    • Check the payment settings page.

    • Check the payment methods list.


Once you have completed the steps mentioned above, shoppers at your store can select this method at checkout and use it for payment. The default payment method name is "PayPal":


If customers select to pay an order with PayPal, they will need to submit the credit card details on the PayPal site:


After the payment, customers will return to your online store and see PayPal as the payment method in the order invoice:


If necessary, you can adjust the display name of this payment method (the one visible to customers) and the position of this payment method in your store’s payment methods list. Learn how you can do it here.

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