PayPal business set up

Set Up Your Business PayPal & Connect to Magento Website

Step: Sign Up for a Business PayPal Account

To begin accepting payments on your website, you’ll need to create a PayPal Business account.

1. Go to Open a Business Account Online | PayPal US
2. Click the Sign Up button (top right corner)
3. Select Business Account when prompted
4. Enter your email address and create a password

Create your business account

Step: Verify Your Email Address

PayPal will send a verification code to the email address you used during sign-up.

1. Check your email inbox for the code from PayPal
2. Enter the 6-digit code exactly as shown
3. Click Submit

👉 If you don’t see the email, check your spam or junk folder, or click “Resend” to receive a new code.

Once completed, you’ll see a confirmation message that your account setup is successful.

Step: Continue Account Setup

After verifying your email, PayPal will guide you through a quick setup process.

1. Click Get Started
2. Follow the prompts to answer a few basic questions about your business
3. This helps PayPal tailor your account for accepting payments

👉 If needed, you can click “Skip for now,” but it’s recommended to complete this step to ensure your account is fully set up for payments.

Step: Select How You’ll Use PayPal

PayPal will ask how you plan to use your account.

1. Select Selling goods or services
2. Click Next

👉 This option is required for your Magento website so you can accept payments from customers.

Step: Choose Where You’ll Accept Payments

PayPal will ask where you plan to receive payments.

1. Select On your website
2. Click Next

👉 This option is required to connect PayPal to your Magento store and accept payments directly on your website.

Step: Select What You Plan to Sell

PayPal will ask what type of products or services you’ll be offering.

1. Select Physical products
2. Click Next

👉 This is the correct option for your Magento store, as you’ll be selling physical items from your product warehouse.

Step: Choose How Customers Will Pay

PayPal will ask how you want to receive payments from customers.

1. Select One-time payment
2. Click See Your Recommendations

👉 This is the correct option for standard online orders through your Magento store, where customers pay in full at checkout.

Step: Select Checkout Setup

PayPal will recommend tools based on your answers.

1. Select Checkout (Top pick for you)
2. Continue to the next step

👉 This option is required for your Magento website, as it enables full payment processing during checkout.

Step: Select Your Business Type

PayPal will ask how your business is structured.

1. Select Sole proprietorship, or you sell on the side
2. Click Next

👉 This is the most common option for new eCommerce store owners and is recommended unless you have a registered business entity (LLC or corporation).

Step: Confirm Business Type

After selecting your business structure, you’ll be asked to specify the type.

1. Under Business type, select Individual
2. Click Next

👉 This is the correct selection for most new store owners who are operating as individuals.

Step: Enter Your Personal Information

PayPal will require your personal details to verify your identity and secure your account.

1. Enter your Full Name (as it appears on your ID)
2. Enter your Date of Birth
3. Enter your SSN
4. Fill in your Home Address:
   • Street address
   • Apartment/Suite (if applicable)
   • City, State, and ZIP code
5. Phone (mobile)
6. Click Agree and Submit

👉 This information is required for account verification and does not affect your credit score.

Step: Confirm Your Address

PayPal may suggest a standardized version of your address.

1. Select the Recommended address (preferred)
2. Click Confirm

👉 Using the recommended format helps avoid verification issues and ensures your account is properly validated.

Step: Enter Your Business & Customer Information

PayPal will now ask for details about your business and how customers can contact you.

Business Details:

1. Enter your Business Name (your store name)
2. Select your Business Industry (choose the closest match)
3. Confirm:
   • Country = United States
   • Currency = US Dollar
4. Enter your Date Established (you can use today’s date if unsure)
5. Select Yes for: “Do you sell on a business website?”
6. Enter your Business Website URL

Business Contact Information:

7. Confirm your Business Address

8. Enter your Business Phone Number

Customer-Facing Information:

9. Enter your Public Business Name (what customers will see)

10. Enter your Customer Service Email

11. Enter your Customer Service Phone Number

Step: Skip Bank Linking (For Now)

PayPal will prompt you to link your bank account.

1. Click Skip for now

👉 You will complete this step later. For now, we want to focus on getting your PayPal connected to your website.

Step: Skip Checkout Setup Prompt

You may see a message about setting up PayPal Checkout.

1. Click Skip for now

👉 We will not set this up here. Instead, we will connect PayPal directly through your Magento website in the next steps.

Step: Access Account Settings

You are now inside your PayPal account dashboard.

1. Locate the icon in the top right corner
2. Click on it to open your account settings

👉 This is where you will access the information needed to connect PayPal to your Magento website.

Step: Access API Settings

In your PayPal Account Settings:

1. Make sure you are on Account access (left-hand menu)
2. Locate API access
3. Click Update on the right-hand side

👉 This is where you will generate the API credentials needed to connect PayPal to your Magento website.

Step: Use NVP/SOAP API Credentials

You will now be taken to the PayPal API setup page.

1. Scroll down to the bottom of the page
2. Click “Continue with out-of-use NVP/SOAP credentials”

👉 This option is required for Magento integration, as it provides the correct API credentials needed to connect your PayPal account to your website.

Step: Continue with Deprecated Credentials

You may see a notice about NVP/SOAP being deprecated.

1. Select Direct (custom application)
2. In the text box, enter something like: “Pre-Built Magento 2 website”
3. Click Continue with deprecated credentials

👉 This step is necessary to generate the API credentials required for your Magento integration.

Step: Request API Credentials

PayPal will now ask how you want to generate your API credentials.

1. Select API signature
2. Click Agree and Submit

👉 This option is required for Magento, as it provides the API Username, Password, and Signature needed to connect your PayPal account.

Step: Copy Your API Credentials

Your PayPal API credentials have now been generated.

You will need to copy and save the following:

• API Username
• API Password
• Signature

👉 These credentials are required to connect PayPal to your Magento 2 website.

⚠️ Important:

• Do not share these credentials publicly
• Keep them saved somewhere secure
• You will use these in the next step when connecting PayPal inside your Magento admin

Now it’s time to connect this API Signature info to your website – Login to your site manager > click on Stores > Configuration

Scroll down and expand Sales dropdown > click Payment Methods

Find the PayPal option and click Configure

Copy and paste all of your credentials from the PayPal API Signature page (see what it looks like below as a refresher)

Click Save Config button in top right corner to save PayPal configuration changes

Last, go to System > Cache Management > click Clear Magento Cache

Your PayPal Business account is now set up and connect to your website. Visit the front end of your website > reload > and go to any product. You will now see options to pay with PayPal – Happy selling!