payouts

Payouts Overview

Use PayPal Payouts to send money to multiple people at the same time. To send a payout, you need to know:

  • 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)

Recipients can receive their funds with a PayPal account. If they don't have a PayPal account, it's easy to open one.

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 PayPal or creates a PayPal account to collect payment.

Recipient notifications

If recipients have a PayPal account, an email prompts them to log in to their account to get details on the payment.

If recipients don't have a PayPal account, an email or mobile notification prompts them to open a PayPal account to claim their money.

Email without PayPal account

Payouts features

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

  • Global reach — Payouts works in over 180 countries and complies with KYC regulations.
  • Currency conversion — Send payments in USD, CAD, AUD, EUR, MXN, and GBP even if you don't maintain a balance in that currency.
  • Flexible integration — Upload a file to Payouts Web or SFTP server, or integrate deeper with the Payouts API.
  • Easy for recipients — Receiving a payout is as easy as opening an email or mobile notification.
  • 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.
  • Reduced risk — PayPal's risk and compliance controls help protect you from fraud.

Send payouts

You can send payouts using the recipient's email address, domestic mobile number, or payer ID.

Use an email or mobile number

This method is the simplest to integrate. To send the payout with this method, use each recipient's email address or domestic mobile number. PayPal sends the money to their PayPal wallet. Recipients who do not have a PayPal account can open an account and claim the money from their PayPal wallet. Unclaimed funds are returned to you after 30 days.

Use a payer ID

This method guarantees payments, reconciliation, and settlement. Use each recipient's payer ID (an encrypted PayPal account number) to send the payout. If you don't already have a recipient's payer ID, the recipient can verify their account through a PayPal flow. When they complete the flow, PayPal sends you their payer ID. Access their Payer ID using Assisted Account Creation.

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 SFTP 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.

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