Payouts enables you to send and manage payments to a large number of recipients simultaneously. All you need to know is:
- Each recipient's email address, a domestic mobile number, or Payer ID (an encrypted PayPal account number)
- Payment amount
- Currency code
You can use Payouts to send payments to consumers, affiliates, or to other businesses that provide services to your company. For a list of businesses that typically use Payouts, see use cases.
- The Payouts flow begins when you initiate a payout request using one of these integration methods:
- The Payouts API validates your request and then processes the payout.
- Payouts sends you a status report.
- Recipients receive a notification that they've received a payment and log in to PayPal (or create a new PayPal account if they don't have one) to collect their payment.
You can send payouts using the recipient's email address, domestic mobile number, or Payer ID.
Sending payouts using an email or mobile number
Tip: Provides the simplest integration.
In this model, you use each recipient’s email address or a domestic mobile number to send the payout. If recipients have a PayPal account, the money is sent to their PayPal wallet. If not, recipients can open an account and claim the money from their PayPal wallet within minutes. Any unclaimed funds are returned to you after 30 days.
Sending payouts using a Payer ID
Tip: Provides guaranteed payments and ease of reconciliation and settlement.
Use each recipient's Payer ID (an encrypted PayPal account number) to send the payout. Depending on your relationship with the recipient, you may already have their Payer ID. If not, you can send the recipient through a quick PayPal flow to verify their account and gather the Payer ID using Log In With PayPal.
Note: If a recipient doesn't have a PayPal account, they can open one, and PayPal promptly provides you the Payer ID.
Barring compliance or fraud issues, this method guarantees payouts, so you don't have to deal with returned payments.
If a recipient has a PayPal account, an email notification prompts them to log in to their account to get details on the payment.
If a recipient doesn't have a PayPal account, an email or mobile notification prompts them to open a PayPal account to claim their money.
Payouts is optimal for sending and managing small-to-medium sized payments to a large number of recipients simultaneously.
These types of businesses typically send payouts:
- Marketplaces, Retail
- Financial Services/Insurance
- Loyalty Rewards, Rebates, Coupons, Incentives
- Online Travel
- Digital Gaming
Choose a Payouts integration method.