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Accept Payments with PayPal on Square Online

Find a POS designed just for your business.

Download the Square Point of Sale app free today, directly on your phone or tablet.

Note: Using PayPal requires an upgrade on your Square Online site.

With PayPal’s payment processor, you’ll have access to a more global customer-base, allowing a wider range of customers to purchase from your website where their cards may not be accepted.

Learn more about accepting payments on Square Online for more information on all of your online payment options.

Create a PayPal Business Account

To start, you’ll need a PayPal Business account. If you don’t already have one, you can convert your personal PayPal account to a Business account or sign up for a new PayPal Business account.

Set Up PayPal on Your Site

To accept payments with PayPal on Square Online:

  1. In your Square Online Overview page, go to Settings > Checkout or Shared Settings > Checkout.

  2. Under PayPal, select Connect and log in to your PayPal account to authorise the connection.

Note: Your customers are unable to pay for the following using PayPal:

  • Appointments: The online booking portion of your Square Online site is powered by Square Appointments, and Square Appointments doesn’t have an integration with PayPal at this time.

  • Gift Cards The gift cards portion of your Square Online site is powered by Square Gift Cards, and Square Gift Cards doesn’t have an integration with PayPal at this time.

  • Local delivery: Since Square is the intermediary between your business/the local delivery service provider and your customer, we cannot support third party payment providers like PayPal. If you have PayPal connected to your website, your customers can still use it to pay for orders that will be shipped or picked up.

Set Up Troubleshooting

If you run into an error while connecting PayPal to Square Online, you may need to make some changes to your PayPal account settings to complete the setup process. Follow the guide below for troubleshooting steps:

  1. Log in to your PayPal account and go to Profile > Website payments. Locate the ‘API access’ section and select the Update link.

  2. Select Grant API permission under the ‘Pre-built payment solution’ section.

  3. Paste the following text into the Third Party Permission Username field, then select Lookup.


  4. Enable the following options under Available Permissions, then select Add:

    • Use Express Checkout to process payments

    • Issue a refund for a specific transaction

    • Authorise and capture your PayPal transactions

    • Obtain information about a single transaction

    • Issue a refund for any prior transaction

  5. Go back to the Checkout tab in your Square Online Overview page to finish connecting PayPal. When prompted, check the box to confirm you’ve granted permission through PayPal and select Done.

Your PayPal account should now be connected and you can begin accepting payments through Square Online.

Note: If you disconnect your PayPal account, you may need to go through this process again before you can reconnect.


If you need assistance with PayPal outside of connecting it as a payment processor to your Square Online site, please contact PayPal’s support team.

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