PayPal Complete Payments for marketplaces and platforms
Last updated: Oct 25th, 1:18pm
PayPal offers the following multi-party payment processing solutions for marketplaces and platforms that process payments on behalf of other businesses.
Connected Path: Your merchant chooses PayPal as their payment processor (gateway). They can manage their payments using an existing PayPal account or creating a PayPal account. A merchant PayPal account is mandatory for the Connected Path solution.
Managed Path: Your merchant onboards onto your platform and they do not have to create or connect a PayPal account. PayPal powers the payment processing for your platform as a white-labeled or embedded financial solution. Your merchants are aware of PayPal's role as the payment facilitator (payfac), only when they accept the payment terms and conditions.
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Connected Path |
Managed Path |
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Merchant servicing |
PayPal managed. |
Partner managed. |
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Merchant experience |
Co-branding is possible. Merchant is redirected to PayPal to complete onboarding. They should log into their PayPal account to manage their payments. |
Partner-controlled white-labeled merchant onboarding. Settings and account management are unbranded. |
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Risk management / liability |
PayPal facilitates transactional and account risk management, including operational support. |
Partner should provide the necessary operations and tech resources for transactional and account risk management. |
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KYC compliance |
Merchants provide data to PayPal. PayPal communicates with them to complete verification. PayPal adjudicates based on global regulatory frameworks. |
Partner takes advantage of PayPal's verification systems, gathers data from their merchants, and facilitates all verification-related communication. |
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Pricing |
PayPal sets the sell rate for merchants. Partner gets revenue share from PayPal. |
PayPal supports multiple models. For information on this, reach out to our sales team. |