What is PayPal and how does it work?

PayPal is the most used online wallet in the world and can be used as a payment method in more than 200 countries. Customers connect their credit card or bank account to their PayPal account or add credit to their account. Payments can also be settled through smartphone or tablet, without filling out bank and credit card details.


How does PayPal work via Mollie?

PayPal payments are slightly different than most of our payment methods. PayPal processes the payments itself and also pays them to you. To use this service, it is therefore required to open a PayPal business account.

Yet there are 2 important benefits:

  • Mollie provides feedback on the status of every PayPal transaction via the API to your website. This ensures that an order is automatically placed on ‘paid’. You do not have to constantly check the PayPal account to see if a payment has already been made.
  • The status of each payment can be found in the transaction overview in your Mollie Dashboard. This means you will have an overview of all payments, made with different payment methods.

Mollie only charges a small fee of € 0,10 per transaction. Besides this, PayPal charges fees that can be found on PayPal.com or agreed directly with PayPal.


When does the status of a PayPal transaction change to 'Paid out'?

Since PayPal will process the payments itself, this means we will not pay you out, but we will settle the transaction fees for the transactions made. After the customer has successfully completed the payment, the status of the transaction in your Mollie Dashboard will be 'Paid'. The status will change to 'Paid out' as soon as your next settlement has been made and the transaction fees for the PayPal payments have been settled.


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