payouts

Payouts Overview

Use PayPal Payouts to send money to multiple people at the same time.

To send a payout, you need:

  • A PayPal business account
  • Each recipient's email address, a domestic mobile number, or payer ID (an encrypted PayPal account number)
  • Payment amount (per recipient)
  • Currency code (one currency per payout)
  • Note to recipient (required for Venmo accounts, optional for PayPal accounts)

Recipients can receive their funds with a PayPal or Venmo account. If they don't have a PayPal or Venmo account, it's easy to open one. Venmo is for US recipients only.

You need a PayPal business account set up according to the prerequisites to use payouts.

Payouts flow

PayPal Payouts follows this flow:

Payouts flow

  1. The Payouts flow begins when you initiate a payout request.
  2. The Payouts API validates your request and processes the payout.
  3. Payouts sends you a status report.
  4. Payouts notifies the recipient that a payment is available. The recipient logs in to their PayPal or Venmo account, or creates a PayPal or Venmo account, to claim their money.

Recipient notifications

If a recipient has a PayPal or Venmo account, an email or mobile notification will prompt them to log in to their account to get payment details. If they don't have a PayPal or Venmo account, an email or mobile notification will prompt them to open a PayPal or Venmo account to claim their money.

Note: Venmo notifications require a US mobile number and are mobile only.

This flow shows the experience for PayPal recipients:

Email without PayPal account

This flow shows the experience for Venmo recipients:

Venmo recipient flow

Payouts features

PayPal Payouts is global, secure, flexible, and easy for recipients. Payouts includes these features:

  • Currency conversion — Send payments in another currency even if you don't maintain a balance in that currency.
  • Detailed records — Your complete payout history is available online, and you'll receive a notification when your payments are sent. You can download transaction details into your accounting tools.
  • Easy for recipients — Receiving a payout is as easy as opening an email or mobile notification.
  • Flexible integration —Upload a file to Payouts Web or SFTP server, or integrate deeper with the Payouts API.
  • Global reach — Payouts works in over 180 countries and complies with KYC regulations.
  • Reduced risk — PayPal's risk and compliance controls help protect you from fraud.
  • Use customers' preferred digital wallets — Send payments to PayPal or Venmo recipients.

Send payouts

You can send payouts to:

  • PayPal recipients — Use the recipient's email address, domestic mobile number, or payer ID (an encrypted PayPal account number).
  • Venmo recipients — Use the recipient's domestic (US only) mobile number.

Use an email or mobile number

This method is the simplest to integrate. It works with PayPal and Venmo, but doesn't guarantee payment, reconciliation, or settlement.

To send the payout, use each recipient's email address or domestic mobile number. Payouts to Venmo require the recipient's mobile number. PayPal sends the money to their PayPal or Venmo wallet.

Recipients who don't have a PayPal or Venmo account can open an account and claim the money. Unclaimed funds are returned to you after 30 days.

Use a payer ID

This method guarantees payments, reconciliation, and settlement, but works with PayPal only.

To send the payout, use each recipient's payer ID. If you don't already have a recipient's payer ID, the recipient can follow a PayPal flow to verify their account. When they complete the flow, PayPal sends you their payer ID. Use Assisted Account Creation to access their Payer ID.

Barring compliance or fraud issues, this method guarantees payouts, so you don't have to deal with returned payments.

Integration methods

PayPal offers three ways to integrate payouts to ensure you get the right solution for your business.

SFTP server

If you are sending large payments, PayPal recommends using the secure FTP server to send the payout details. PayPal processes the payouts in batches.

Payouts API

Send payouts programmatically from within your app.

Payouts Web

Upload a CSV file with your payment details to Payouts Web. No integration is needed.

Use cases

Business Use Case
Advertising and affiliates Pay global affiliates without manually verifying their identities. Maintain customer analytics
Digital gaming Pay in-game winnings
Insurance Process and send payouts for claims
Loyalty programs Send earnings to customers through their preferred digital wallet
Online travel Pay event organizers, ticketing platforms, and create travel marketplaces
Retail and marketplaces Manage payments from shoppers and pay sellers on their platform

Next

Complete the prerequisites.