PayPal is one of the world's most widely used digital payment methods, trusted by hundreds of millions of shoppers globally. With PayPal in your checkout, shoppers can pay quickly and securely using their PayPal balance, linked bank account, or card.

PayPal is currently available in open beta. If you want to offer PayPal through Kustom Checkout, reach out to us and we'll take it from there.

The broader rollout of PayPal will take place gradually. All of Kustom's merchants will have the opportunity to offer the payment method in their checkout during the year 2026, integrated with Kustom's functionality for autofill, address validation, shipping and other features.

We'll share more details on supported markets and currencies as the rollout progresses.

Kustom's standard payment method offering covers four layers of the payments stack. With most payment methods, Kustom handles all four. PayPal works differently, ownership is split between Kustom and PayPal, which means there are some operational differences worth knowing about when it comes to Paypal.

You manage orders, captures, refunds, and cancellations through Kustom — exactly as you do for other payment methods. Settlement and financial reporting is accessed through your PayPal merchant dashboard. Disputes on PayPal transactions are managed through PayPal's Dispute Center.

Transaction-level financial data for PayPal orders lives in your PayPal dashboard, not in Kustom. Payout schedules and settlement timing follow PayPal's infrastructure. Your finance team will need to work across two reporting environments:

PayPal transactions are filtered out from all settlement-related reports and endpoints in the Kustom Portal, including transaction reports, settlement reports, settlement batch reports, and balance reports.

Kustom passes the Kustom order ID to PayPal on every transaction. If merchant reference 1 (mref1) is set at the time Kustom captures against PayPal, it is also passed as a separate field.

References are not updated retroactively. If you set or update mref1 after the order has been captured, that change will not be propagated to PayPal. For PayPal transactions, use the Kustom order ID as your primary reconciliation key — it is always present on both sides.

Kustom's dispute tooling does not apply to PayPal transactions. The Disputes tab in the Kustom Portal shows which orders have active PayPal disputes and their current status, but resolution happens in PayPal's Dispute Center. Response timeframes, evidence requirements, and outcomes follow PayPal's rules and processes.

Full order management functionality is available for PayPal orders, including the Order Report. You can view all PayPal orders, their statuses, and perform captures, refunds, and cancellations just like any other payment method.

PayPal transactions are filtered out from all settlement reports. Use your PayPal dashboard for PayPal financial data.

Shows orders with active PayPal disputes and their current status. To manage and resolve disputes, this is done through the PayPal's Dispute Center. You can go to Paypal's Dispute Center from Kustom Portal by clicking the "Handle in Paypal" button in the top right corner of a Paypal dispute.

You need an active, verified PayPal Business account in a supported market. Kustom does not provision PayPal accounts — if you don't have one, you'll need to complete PayPal's own onboarding and KYC process first.

If you don't have a PayPal business account, you can click on the PayPal onboarding link in Kustom Portal.

Important note: If you are unable to find the PayPal onboarding link, let Kustom know and we will make it available for you.

The connection is done through the Kustom Portal and takes about 5 minutes. Once your PayPal Business account is ready, follow the setup guide in Kustom Docs for step-by-step instructions.

Yes. Once the connection shows as Completed in the portal, reach out to Kustom with your store name and the Merchant ID shown in the onboarding card. We'll enable PayPal as a payment method in your checkout configuration.

Order management works identically to other payment methods — captures, refunds, and cancellations are all handled through Kustom as normal. The main difference is that financial reporting and payouts for PayPal orders sits in your PayPal dashboard rather than Kustom.

PayPal is available in a growing number of markets. We'll share more details on supported markets and currencies as the rollout progresses.

Standard transaction fees apply. For detailed pricing, contact your Kustom representative.