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You can send payouts through:

Set up sandbox account for Payouts API integration​

  1. Sign up for a developer account. On successful signup, PayPal automatically creates your sandbox environment. The sandbox environment is a test environment that helps you mimic real-world transactions. By default, the environment includes a business and personal account. When testing your app, you can use the business account to send payouts and the personal account to receive. You can create multiple additional business and personal accounts.

  2. Set up the sandbox environment:

    1. Go to your PayPal developer account and toggle to Sandbox .
    2. Go to Apps & Credentials and select Create App .
    3. Enter your app name, select Type as Merchant , select the sandbox business account to test your app, and select Create App . The app details page is displayed.
    4. Configure a webhook listener for the app and subscribe to events: - Go to Features > Sandbox Webhooks .
    5. Select Add Webhook.
    6. Enter a Webhook URL (the server endpoint where notifications from PayPal are sent), select the events the app wants to subscribe to, and select Save. The webhook listener is successfully configured and a Webhook ID is displayed. You can store the ID and use it in your app code to verify the source sending a message to your listener. For more information on webhooks, see Webhooks guide. For the list of payouts events that the app can subscribe to, see Webhook reference.

  3. Retrieve sandbox app credentials: To integrate Payouts APIs and test them successfully, you require the following sandbox credentials for your app:

    • Client ID: App identifier that helps with account authentication.
    • Client secret: App credential that helps with app authorization.

    To retrieve the sandbox credentials:

    1. Go to your PayPal developer account and switch to Sandbox.
    2. Go to Apps & Credentials > API Credentials > REST API apps.
    3. Copy the Client ID and Secret (Client secret) listed next to your app name and save them.

  4. Retrieve sandbox account credentials: To successfully test the payouts flow in sandbox, you should:

    1. Run the app in your local environment and initiate payouts as a sender.
    2. For PayPal wallet: Log in to your sandbox personal account and sandbox business account (test site) and verify if the funds have moved from the business account to the personal account.

    To do this, you require the sandbox personal and business account log-in credentials. For information on how to retrieve the log-in credentials from your developer account, see Get sandbox account credentials.

  5. Set up the development environment.

Set up SFTP user account for large-batch file transfer​

PayPal uses Secure File Transfer Protocol (SFTP) to securely exchange payout files and reports between your system and the PayPal platform.

  1. Contact PayPal to enable report access for your PayPal business account.
  2. Create a user account on the SFTP server:
    1. Log in to your PayPal account.
    2. Click on your profile logo and from the dropdown menu, select Account settings.
    3. On the Account access page, click Update next to Secure FTP.
    4. Follow the on-page instructions to complete the user account setup. When finished, the final page displays your new user information.

Note: Create separate SFTP accounts - for sandbox and production environments.

Sandbox DropZone credentials​

Use the following sandbox DropZone credentials to connect to your DropZone on the SFTP server. You can connect through an SFTP client tool (such as WinSCP, Cyberduck, or FileZilla).

  • Sandbox endpoint/URL: dropzone.es-ext.paypalcorp.com
  • Destination host port: 22
  • Sandbox user name (from your sandbox SFTP user account)
  • Public SSH key

Production DropZone credentials​

Use the following production DropZone credentials to connect to your DropZone on the SFTP server. You can connect through an SFTP client tool (such as WinSCP, Cyberduck, or FileZilla).

  • Production endpoint/URL: dropzone.paypal.com
  • Destination host port: 22
  • Production user name (from your production SFTP user account)
  • Public SSH key

Set up business account for Web UI file upload​

Work with your account manager, call 1-888-221-1161, or contact PayPal to request Payouts access. After successful activation, you can go to your account and send payouts through file upload.

Set up production business account​

To use PayPal Payouts, you need a verified PayPal business account. After creating your production business account,

  1. Verify your account:

    1. Complete identity verification.
    2. Complete email verification.
    3. Link a bank account or credit card to your PayPal account.

  2. Request payouts activation: Contact PayPal support to enable Payouts on your account.

Fund your account​

To successfully send payouts, ensure your PayPal account has sufficient funds.

  1. Link a funding source: Log in to your PayPal account and link a bank account or credit card.
  2. Add funds to your PayPal account:
    1. Navigate to the Wallet section of your PayPal account.
    2. Transfer money from your linked bank account or card to your PayPal balance.
  3. Set up auto-funding: Enable auto-funding in your PayPal account settings to ensure your account always has sufficient funds for payouts.
  4. Monitor transactions: Regularly review your account balance and transaction history to ensure smooth payouts.