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How To Set Up PayPal on Your WooCommerce Store


Being one of the most convenient and widely accepted forms of payment, Paypal is an excellent option for e-commerce stores. It takes a couple of minutes to set up Paypal to any e-commerce platforms.

For those who’re starting out, connecting Paypal with WooCommerce might look like a daunting task. In this guide, we will show how to setup Paypal on your WooCommerce site so that you can start accepting payments immediately.

We shall also use the Payment Data Transfer (PDT) method where a PayPal Identity Token is required.


Before you start, ensure you have the following ready:

  • A PayPal account
  • Access to the admin section on WordPress
  • A WooCommerce plugin installed.
  • With these items in place, we can start.

Step 1 - Acquiring Paypal Identity Token

To connect PayPal to your WooCommerce store using the PDT technique, we need to find PayPal Identity Token.

To get one, follow the steps below:

1.  Go to the PayPal homepage and login to the dashboard. Click My Selling Tools button.

2. You will be directed to the My Profile page. Search and press the Update button next to Website preferences section.

3. To obtain PayPal Identity Token, start by making the following changes.
First, enable the Auto Return option, then the Payment Data Transfer and then enter the Return URL.

4. Now, tap the Save button to obtain Paypal Identity Token.

Now that you have got your PayPal Identity Token, you can integrate it into your WooCommerce store.

Step 2 - Adjusting WooCommerce Settings

WooCommerce is widely known for its simple to use interface and overall flexibility. In fact, it takes a few minutes to set up several payments options in WooCommerce. By default, WooCommerce offers four payment channels. These are:

  • Direct Bank Transfer
  • Cash on Delivery
  • Check Payments
  • PayPal

To choose PayPal as your option and connect it on WooCommerce, follow the steps below:

1. Go to WordPress admin area and locate the WooCommerce page then click Settings.

2. On this page, click the Checkout section and then press on PayPal.

On the same page, you will be presented with several other empty fields for your to fill out. We will look at these in the next section.

Step 3 - Connecting PayPal on WooCommerce

To integrate PayPal payment method, you need to modify the WooCommerce settings. Here are the key changes you need to make:

Preliminary Options:

Enable/Disable: This section enables PayPal as the preferred payment method on WooCommerce.


Title: The actual heading that will appear on your page.


Description: A set of messages that will appear on your page when checking out.

PayPal Email: Features your official PayPal email address that will be used to send and receive payments.

Advanced Options

Under the Advanced Options, make sure you fill out the following fields as needed.

PayPal SandBox: These are virtual accounts used to check whether the payment process is working properly or not. It may be turned on. A developer’s account is needed.

Debug Log: This option may also be turned on, which proves to be useful in the development stage. It helps to log PayPal daily events such as IPN requests.

IPN Email Notification: Tick the checkbox to enable IPN (instant payment notification)

Email Notifications (optional).  These notifications are sent from your PayPal account once you receive a payment, a chargeback, issue a refund, or cancellation.

Receiver Email: Enter an email address on this section if your primary email address on PayPal is different from the one entered earlier in the PayPal email field.

PayPal Identity Token: The option will only allow verification of payments without using PayPal IPN.

Invoice Prefix: If you plan to use your PayPal account for multiple stores, a unique invoice prefix will come in handy since PayPal doesn’t allow orders with the same invoice number.

Shipping Details: To make sure the process is secure, PayPal allows a user to send items to one address. You can tick the checkbox to allow WooCommerce to send the details of the shipping to your PayPal rather than billing.

Address Override: If you enable this option you safeguard the address details and prevent them from being altered.

Payment Action: Provides you with a choice to either capture funds directly or authorize it first.

Page Style: Enter the page style you want to use.

Image URL:  Gives you the option to specify an image you wish to use in the PayPal checkout page.

API Credentials

You also need to include the API credentials for your PayPal account to process any refunds. This section includes the API username, password, and signature which are mandatory fields that are needed during the integration of PayPal with your account.

Once you’re done with PayPal settings, tap the Save Changes button to apply these changes.

You should see a message confirming that everything has been saved.


That’s it! With these tips, you can successfully set up PayPal on your WooCommerce store using the PDT technique. Then you can start accepting PayPal payment on your e-commerce shop.


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