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PayPal Marketplace: Multi-vendor Marketplace for Shopify – [User Guide]

Updated 6 September 2023

Currently, the PayPal Marketplace feature app is not available in the Multi-vendor Marketplace App.

PayPal Commerce Platform is a full-stack solution that offers marketplaces and other commerce platforms powerful and flexible payment processing capabilities.
The Multi-vendor Marketplace app for Shopify has come up with the PayPal Marketplace feature app. It allows the merchants to auto-pay to the sellers via PayPal once the customer pays the order amount.

To use this feature, firstly you need to install the Multi-vendor app and then, enable the PayPal Marketplace feature app.
This feature app costs you $10 USD/month in addition to your Multi-vendor app plan.

MARK:- Before enabling this featured app, you must have PayPal marketplace API credentials. Please contact PayPal to get the PayPal Credentials.
Also, to use the PayPal Marketplace on your website firstly, you need to get the approval of your PayPal account. You need to manage this approval process from PayPal. Then only, you will get the PayPal credentials. So, please contact PayPal for the same.

3 Quick Steps To Install The Feature App:-

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  • Go to the Feature Apps.
  • Get the PayPal Marketplace Feature App.
  • Clicking the Enable Button, activate the PayPal Marketplace feature.

Click The ENABLE Button

Points To Be Noted

  • To make the “PayPal Marketplace” feature work, both admin and the seller need to have their business PayPal accounts.
  • Admin needs to Contact PayPal to get the PayPal API Credentials.
  • PayPal Marketplace works with Gift Cards. But the whole payment will be received by the admin and will not get auto-split between vendors & admin. The admin then further needs to transfer the vendor’s share separately.
  • If a customer cart contains more than 9 seller’s products then only Manual Pay Mode will be available.
  • If an order has discount applied on it, then the whole order amount will be sent to the admin’s account. And the admin will be responsible for sending the earning to seller account.

PayPal Commerce Platform (PPCP) currently supports the following countries:

US, Australia, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Hungary, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Canada, Austria, Germany, Ireland.


  • The merchant can pay the seller’s earning automatically in run time via PayPal.
  • The payment will get split on the basis of the commission configured in the app.
  • Refunds too will be managed automatically.

Steps to Retrieve the Client ID and Key

PayPal: Partners Onboarding

  • As the “PayPal Commerce Platform is currently available to approved partners,” initially, to register with the PayPal Commerce Platform, the store owner will have to navigate to the PayPal Commerce Platform Partner Onboarding page.
  • Thereafter, the store owner must tap on the link- PayPal Partner form if the store owner wishes to be an approved partner of the PayPal Commerce Platform.
  • It redirects to the PayPal Partner form page, where the store owner needs to fill in the necessary details, and submit the same.
PayPal - paypal-partners-1
  • Then a success message will display and a confirmation mail is sent to the store owner an account is created with PayPal.  
PayPal - success-message-paypal

Further, the store owner can carry on with retrieving the Client Id and Secret by following the steps below:

Generate Sandbox Client Id and Secret

So, for retrieving the Client Id and Secret, login here.

Then navigate to My Apps & Credentials as shown in the given image:

PayPal - My-apps-credentials

Create App

On clicking the Create App, it redirects to the Create New App page.

PayPal - sandbox_create_app

Sandbox Create New App Page

Here, enter your App Name and select the Sandbox developer account and proceed further by hitting the Create App button.

Subsequently, select the sandbox or live account for which you want to create the API credentials ie; client ID and secret key.

PayPal - sandbox_create_new_app-1

Sandbox – Get Client Id and Secret 


Get PayPal Live Client Id and Secret:

For the Client Id and Secret, login here.

Then, navigate to My Apps & Credentials as shown in the given image:

PayPal - live_dashboard

Create App

On clicking the Create App, it redirects to the Create New App page.

PayPal - live_create_app

Create New App Page

Here, enter your App Name and proceed further by hitting the Create App button.

PayPal - live_create_new_new

Find the Live Client Id and Secret:


Hence, copy the client ID and secret key and configure them in the admin backend under PayPal Marketplace Payment systems configurations.

Admin End Configuration

After retrieving the PayPal details, proceed to enable the PayPal Marketplace from the Order>>Checkout Payment Method section.


Now, enable the PayPal Marketplace payment method.

Please Note:- Make sure that you have activated only one payment method at a time (either PayPal or Stripe) to accurately auto-split the payment in run time.


Now, enter the following details to configure PayPal Marketplace in the app:-

  • Enter Development BN Code.
  • Enter the development ID of the PayPal Marketplace.
  • Also, enter the Development client secret.
  • After that, enter the PayPal Partner merchant ID.

Note:- You’ll get all these details from your PayPal Account.

  • Now, enter the PayPal Payment name.
    Note:- The payment method name that you mention in the app should be the same as the custom payment method name created on Shopify. Let’s check the Shopify settings once.

Shopify Store Settings

You need to create a custom payment method from the Shopify store backend.

Please Note:– Name of your custom payment method should be the same as the name of the PayPal Payment Method name (which you have entered from the “Checkout payment method” section of the multivendor app).

Then, the customers must need to pay via this custom payment method, only after that payment gets split between the admin & seller.

Admin needs to create the PayPal payment name from Shopify store settings to add Payment Name for the checkout page. Please follow the below steps:-

Admin panel of Shopify store>>Settings >> Payment>>visit “Manual Payments” section>>click “Create Custom Payment Method” from drop down>>Enter Payment Method name>>Click on “Activate” button.


That’s all you need to configure from the admin end. Let’s understand the Seller End Configurations.

Seller End Configuration

The seller needs to connect their PayPal with that of the admin’s account.

So, to configure this, the seller needs to proceed to login to Seller Panel>>Go to Orders>>PayPal Marketplace Configurations>>Click the button “Add Account to PayPal Marketplace“.


Visiting the PayPal Marketplace Configuration section, the seller needs to complete the authentication process and connect his/her PayPal account with the merchant’s PayPal account.


As the seller clicks on PayPal Marketplace Configuration, it redirects to the first page of the PayPal login page. The seller needs to fill in the Email ID and the country location.


Now, clicking the Next tab, the seller will proceed for the next step. 


This way, you can successfully add account to PayPal Marketplace.


This way, the seller can connect his/her PayPal Marketplace to the merchant’s PayPal Marketplace.

Customer End

Now, the customer can pay for the order via PayPal and get the payment split automatically between the merchant and the seller of the product.

Please Note:- The customers must need to pay via this manual payment method, Only after that payment gets split between admin & seller.

On the Payment page, the customer will get the option to pay via PayPal as shown in the screenshot.


Note: The PayPal pop-up will only appear on the “Thankyou” page & then, customers need to enter their Payment details & then payment will split.

The process goes like this:

  • Customers will choose the manual payment method from the checkout page.
  • Click on the complete order tab.
  • Order will be placed & the customer will redirect to the Thankyou page.
  • Here the customer will get the option to enter their card details.
  • Then, the payment will be done and will split between admin & seller automatically.

That’s all about the PayPal Marketplace feature app.

Need Help?

Furthermore, if you need any kind of support/Consultancy then please raise a ticket at or drop an email at [email protected] and the team will assist you.

Thanks for reading this blog!!! 🙂

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