Use Case for Express Checkout Recurring Payment

Express Checkout Recurring Payments is a legacy PayPal integration that allows you to set up billing agreements with customers for recurring payments, subscriptions, and usage-based billing. This integration uses billing agreements and reference transactions to charge customers on a recurring basis without requiring them to log in to PayPal for each payment.

With Express Checkout Recurring Payments, you create a billing agreement with your customer that gives you permission to charge their PayPal account in the future. Once established, you can process payments on your schedule—whether that's for subscriptions, installment plans, or variable recurring charges.

Upgrading to modern PayPal Recurring Payments provides a more streamlined setup process, better subscription management tools, and enhanced features that improve the customer experience.

Use case identification

To find the right upgrade path for your business, identify which Express Checkout Recurring Payments use case matches your current implementation. Review the descriptions below to determine how your system currently handles billing agreements.

1. Billing Agreement with Purchase

You're using this use case if you collect an initial payment at the same time you establish the billing agreement with your customer. The customer authorizes future recurring payments AND completes their first payment in a single transaction.

Common examples: Monthly subscription services with immediate access, annual memberships with upfront payment, SaaS products with first month charged immediately, software licenses with recurring billing, membership sites with instant activation

Recommended: Upgrade to PayPal Recurring Payment

Key Features
  • Customer pays immediately upon signup
  • Single-step enrollment process
  • Billing agreement created for future reference transactions
  • Requires API integration and development work

View Billing Agreement with Purchase upgrade guide >

2. Billing Agreement without Purchase

You're using this use case if you establish a billing agreement with your customer without collecting an initial payment. The customer authorizes future recurring payments, but no money is transferred during the setup process. You charge them later based on your billing schedule or usage.

Common examples: Free trial subscriptions, usage-based billing services, metered services (utilities, cloud services), delayed billing arrangements, pre-authorized payment plans, services with setup periods before first charge, subscription boxes with deferred start dates

Recommended: Upgrade to PayPal Recurring Payment

Key Features
  • Establishes billing agreement without immediate payment
  • Customer authorizes future charges only
  • First payment occurs later based on your billing schedule
  • Flexible billing timing and amounts
  • Requires API integration and development work

View Billing Agreement without Purchase upgrade guide >

3. Subscription

You're using this use case if you create recurring payment profiles to charge customers on a fixed schedule. The customer authorizes a subscription with defined billing terms (frequency, amount, duration), and PayPal automatically collects payments according to that schedule. You define the billing structure upfront, and the system handles ongoing payment collection.

Common examples: Monthly SaaS subscriptions, annual membership renewals, subscription boxes, streaming service plans, gym memberships, magazine subscriptions, software license renewals, recurring donation programs, premium content access

Recommended: Upgrade to PayPal Subscriptions API

Key Features
  • Automated billing based on predefined plan structure
  • Supports fixed, quantity-based, volume-based, or tiered pricing models
  • Built-in trial period and setup fee options
  • Full subscription lifecycle management (suspend, activate, cancel, revise)

View Subscription upgrade guide >