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PayPal Complete Payments for marketplaces and platforms
Last updated: June 3, 2026
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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.
| Connected Path | Managed Path | |
| Merchant servicing | PayPal managed. | Partner managed. |
| 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. |
| 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. |
| 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. |
| 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. |