--- title: PayPal Marketplace (Real time Split) description: "## Brief Introduction Payments are the backbone of any marketplace, but managing payouts can be complex and time-consuming. The **PayPal Marketplace module** simplifies this process by enabling seamless payment collection and automated store owner disbursements. With PayPal Marketplace, marketplace owners can handle…" url: "https://multivendorx.com/docs/knowledgebase/paypal-marketplace-real-time-split/" updated: "2026-05-27" category: Payments --- # PayPal Marketplace (Real time Split) ## Brief Introduction Payments are the backbone of any marketplace, but managing payouts can be complex and time-consuming. The **PayPal Marketplace module** simplifies this process by enabling seamless payment collection and automated store owner disbursements. With PayPal Marketplace, marketplace owners can handle multi-store transactions efficiently and securely in real time. ## Requirements - [MultiVendorX Pro](https://multivendorx.com/pricing/) ## PayPal Account Setup To get started, you need a PayPal Business account. You can use either a **Live account** or a **Sandbox account** for testing. ### PayPal Business Account Create a new **PayPal Business account** or log in to an existing one. For testing purposes, you can use a **Sandbox account** via the PayPal Developer Dashboard. > **Note:** For live mode, ensure your PayPal balance is 0 before starting the integration. --- ### API Credentials Log in to the **PayPal Developer Dashboard** and navigate to **My Apps & Credentials**. Create a new app by clicking **Create App**, then enter the app name and select your business account. Once the app is created, copy the following credentials: - **Client ID** - **Client Secret** Use **Sandbox credentials** for testing and **Live credentials** for production. --- ### Merchant ID Log in to your PayPal account and go to **Account Settings → Business Information**. Copy the **Merchant ID (Partner ID)** from this section. For Sandbox accounts, navigate to **Accounts → View/Edit Accounts** and copy the **Account ID**, which acts as the Merchant ID. --- ## PayPal Marketplace Configuration (Admin End) --- To start using PayPal Marketplace, the admin first needs to enable the module from **MultiVendorX → Modules → PayPal Marketplace** from the Payment Management section. Once enabled, the PayPal Marketplace option becomes available for further configuration. [![](https://multivendorx.com/wp-content/uploads/2022/12/PayPal-Marketplace-module.png)](https://multivendorx.com/wp-content/uploads/2022/12/PayPal-Marketplace-module.png) Next, navigate to **MultiVendorX → Settings → Finance → Withdrawal Methods** and enable the **PayPal Marketplace** payment option. Once enabled, you will need to provide the required PayPal credentials and configure the payment settings. - **Payment Mode** – The **Payment Mode** determines whether transactions are processed in a testing or live environment. Use **Sandbox** mode while testing your integration, and switch to **Live** mode only when you are ready to accept real payments. - **Client Id** – Enter the **Client ID**, which is your app’s public identifier issued by PayPal. Each environment (Sandbox and Live) has a different Client ID, so ensure you are using the correct one based on the selected payment mode. - **Client Secret** – Add the **Client Secret**, which acts as a private key to authenticate your server when communicating with PayPal’s API. - **Partner Merchant ID** – You will also need to provide the **Partner Merchant ID**, which is your PayPal Merchant ID as the marketplace owner. This is required to enable real-time split payments. Additionally, enter the **Admin PayPal Email**, which should be the email address linked to your PayPal Business account. - **Disbursement Mode** – The **Disbursement Mode** allows you to control when funds are released to store owners after a successful order. If set to **Immediate**, store owners receive their share instantly at checkout. With **On Order Completion**, funds are released only after the order is marked as complete or delivered. The **Delayed** option holds the funds for a specified period before releasing them, allowing time for order verification or handling disputes. [![](https://multivendorx.com/wp-content/uploads/2022/12/PayPal-Marketplace.png)](https://multivendorx.com/wp-content/uploads/2022/12/PayPal-Marketplace.png) Once these settings are configured, the admin setup is complete. Store owners can then connect their PayPal accounts from their store dashboard to start receiving payments seamlessly. ## Store Owner Configuration Store owners need to connect their PayPal account to start receiving payments. This can be done directly from the store dashboard. Navigate to the **Store Dashboard → Settings**, and once the page loads, go to the **Payout** section. From the available options, select **PayPal Marketplace**. Click on **Connect with PayPal** and complete the onboarding process. After successfully connecting, you will be redirected back to the **Payout** tab, where a confirmation message will indicate that the setup is complete. [![](https://multivendorx.com/wp-content/uploads/2022/12/Paypal-marketplace-gif.gif)](https://multivendorx.com/wp-content/uploads/2022/12/Paypal-marketplace-gif.gif) If needed, store owners also have the option to disconnect their PayPal account at any time by clicking on the **Disconnect** button. --- --- ## Frontend Behavior - Customers can choose PayPal Marketplace at checkout. - Payments are securely processed via PayPal. - Store owners receive their share based on the configured disbursement mode. [![](https://multivendorx.com/wp-content/uploads/2022/12/PayPal-Marketplace-Checkout-1024x715.png)](https://multivendorx.com/wp-content/uploads/2022/12/PayPal-Marketplace-Checkout.png)