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Common scenarios with PayPal: One-time payments and subscriptions

This guide explores the most common integration scenarios for PayPal Checkout: one-time payments and subscriptions. Each section provides business context, describes the buyer experience, offers integration tips, and links to comprehensive implementation guides.

One-time payments​

One-time payments allow customers to make a single purchase, completing the transaction in one payment process.

Business context​

Ideal for various business models, including:

  • E-commerce stores selling physical products.
  • Digital marketplaces offering downloadable content.
  • Service providers charging one-time consulting fees.

Buyer experience​

The buyer:

  • Selects the PayPal button at checkout.
  • Reviews the order details and completes payment.
  • Receives confirmation and access to purchased goods or services.

PayPal, Pay Later, and Pay Now buttons displayed on a mobile device checkout

Integration resources​

Best practices​

  • Position the PayPal button prominently at key conversion points.
  • Enable guest checkout to reduce friction.
  • Display clear pricing and shipping information.

Subscriptions and recurring payments​

Subscriptions help customers to authorize regular, automated payments on a fixed schedule. This model creates predictable revenue streams and fosters long-term customer relationships while eliminating the friction of manual renewals.

Business context​

Subscriptions are valuable for:

  • SaaS platforms offering monthly software access.
  • Media companies with streaming subscriptions.
  • Nonprofits accepting recurring donations.
  • Membership sites with ongoing benefits.

Buyer experience​

The subscription process typically involves:

  • Selecting a subscription plan and choosing PayPal as the payment method.
  • Reviewing and accepting the recurring payment terms.
  • Receiving confirmation, with future payments processed automatically.

Subscription window with subscription details displayed at checkout

Advanced scenarios​

Subscription management capabilities include:

  • Free trials with automatic conversion to paid plans.
  • Plan upgrades or downgrades.
  • Subscription pausing and resuming.
  • Multi-currency support and localized payment methods.

Integration resources​

Best practices​

  • Clearly communicate billing terms, frequency, and upcoming renewal dates.
  • Send timely notifications before renewals or trial period endings.
  • Implement smart retry logic for handling payment failures.

Multiparty transactions and marketplace solutions​

PayPal enables complex payment scenarios where funds need to be distributed among marketplaces and platforms. Marketplaces and platforms serve as intermediaries between customers and multiple sellers or service providers.

What are marketplaces and platforms?​

Instead of the customer paying a business directly, the payment goes to the platform. The platform then splits and routes the funds to the appropriate parties, often using PayPal technology to manage the process.

This setup enables multiple recipients to be paid in a single transaction and streamlines payment processing and reconciliation. These solutions are ideal for platforms or marketplaces.

Marketplace payments​

  • Split payments between sellers and your platform using PayPal for Marketplaces.
  • Ideal for online marketplaces that charge platform or service fees.

International payments​

  • Accept multiple currencies and support local payment methods.
  • Ensure compliance with regional tax regulations and payment rules.

Integration resources summary​

ScenarioAPI/ModuleKey Endpoints/Documentation
One-Time PaymentPayPal Checkout/v2/checkout/orders, PayPal Checkout
SubscriptionSubscriptions API/v1/billing/subscriptions, Subscriptions

Best practices and optimization​

  • Conversion optimization: Place PayPal buttons strategically at decision points. Offer PayPal alongside credit cards and local payment methods.
  • Payment recovery: Implement webhooks to detect and handle failed payments with intelligent retry mechanisms.
  • Compliance & security: Clearly display terms of service, utilize secure backend calls, and stay current with regional regulations.