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PayPal Invoicing supports two ways to create and manage invoices: The key difference between these options is how invoices are created, sent, and tracked: either manually in the Dashboard, programmatically in your application, or a mix of both. All invoices, regardless of how they are created, are accessible in the PayPal dashboard for tracking and management. The primary difference between these options is how invoices are created and updated: manually in the dashboard or programmatically through your application.

Comparision

CategoryPayPal Invoicing (Dashboard)Invoicing REST API
Who should use itBusinesses that want a no-code solution and manually create invoices from the PayPal dashboard
Ideal for low to moderate invoice volume
Businesses that need automated invoicing, higher invoice volumes, or integration with backend systems such as ERP, CRM, or SaaS platforms
How invoices are createdManually in the PayPal dashboardProgrammatically via REST API calls from your backend
Technical requirementsNo development requiredRequires backend development and REST API integration
Uses OAuth 2.0 authentication
AutomationLimited to dashboard-based workflowsFull automation of invoice creation, sending, reminders, and reconciliation
Invoice lifecycle managementManage invoices in the PayPal dashboard (status tracking, reminders, refunds, offline payments)Manage invoices via API and webhooks
Invoices are also visible in the PayPal dashboard for operational support
Payer experiencePayPal-managed payment workflow with multiple payment methods such as PayPal, debit and credit cards, digital wallets, and eligible local payment methodsPayPal-managed payment workflow with multiple payment methods such as PayPal, debit and credit cards, digital wallets, and eligible local payment methods