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How to set up PayPal for commission payments
How to set up PayPal for commission payments

Set up PayPal to issue commission payments to your affiliates.

Aleksandra Velkova avatar
Written by Aleksandra Velkova
Updated over a week ago

Requirements to use PayPal Payouts

There are a few requirements you must meet in order to use PayPal Payouts:

  1. PayPal Business Account.

  2. Payouts have to be enabled for your account. Not all PayPal accounts have this feature enabled automatically, especially if you are outside the U.S. Please contact PayPal directly to make sure this is enabled for you.

Step 1: Add PayPal to your Lootly integrations

  • Navigate to Integrations from your main menu -> Find PayPal -> click Connect

  • In the next screen you’ll add few pieces of information to connect your PayPal account with Lootly:

You’ll need to add:

  • Client ID

  • Client Secret

  • Payouts Webhook ID

Keep reading on how to obtain each piece of information from PayPal.

Step 2: Login in your PayPal’s Developer Portal

Head over to PayPal's Developer portal and click on Dashboard in the dropdown located on the top left of the screen.

Step 3: Verify that you have the Payouts API enabled

Note that this step might take anywhere from a few hours to several days, since PayPal has to give you permission for it.

We don't have control over this, so reaching out to us on this matter won’t drive results.

Applying for this option though is very easy.

At the bottom of the column called "permission name", you'll see the row labeled "Payouts".

You want to click the Enable link.

PayPal will email you that they are reviewing your request. Once you've been accepted you'll notice a green check mark signifying that the API is live.

Step 4: Add Lootly to the PayPal apps

  • Click on My App & Credentials in the left side menu.

  • Scroll down till you find the "REST API apps" section found under the My Apps & Credentials. Click the Live option on the Sandbox/Live button.

  • Next, click the "Create App" button.

  • Under App Name type Lootly Affiliate Payout. Then click the "Create App" button.

How to create a new app in PayPal

Step 5: Click Show underneath the Secret header and make sure to select "Live" on the top right.

Step 6: Obtaining your Client ID and Secret

Once you do step 5, you’ll see the Client ID and Secret. Please make note of these values as you’ll need to input them in Lootly.

Step 7: Obtaining the webhook

The webhook allows us to keep track of your payouts in Lootly. To obtain this, you’ll do the following:

  • In the Live Webhooks box, click the Add Webhook button

  • Enter the following URL in the "Webhook URL" field:

  • Click the box labeled "all events". This will make all the boxes checked.

  • Scroll down and click save.

  • Please make a note of this webhook - you’ll need to use it in the next integration steps.

Step 8: Connecting PayPal to Lootly

This step can only be done once your access to PayPal Payouts API has been approved by PayPal.

To connect Lootly with PayPal simply enter the previously obtained details into their respective fields in your Lootly account.

So in Integrations -> Manage -> PayPal:

Once you’re done, save your changes and make sure your integration is enabled.

You’re now ready to send commission payments to your affiliates via PayPal.

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