How to Set Up PayPal Payouts in CollabPay

Published on 12 September 2021
Updated 25 January 2023
How to Set Up PayPal Payouts
Avatar for Jason Clarke
Jason Clarke
Table of Contents

CollabPay has the ability to use ‘PayPal Payouts’ to pay collaborators automatically. You can also use Stripe Payouts; check this guide to learn more.

Before we begin with PayPal Payouts, you need to set up the following:

  1. A PayPal business account with sufficient funds for payments (funds need to be in your PayPal account)
  2. A confirmed identity, email, and bank account linked to your PayPal business account
  3. Permission from PayPal to use PayPal Payouts (follow the steps below to apply)

Using PayPal Payouts will also incur a 2% fee for each payout. These are PayPal fees, and CollabPay is not in control of this. The fees cannot exceed the total value of $14 USD for domestic transactions and $90 USD for international transactions. This may vary depending on your currency. See more about PayPal Payout fees here.

paypal fee

Funding your PayPal

PayPal does not allow you to pay via Payouts using bank accounts or cards. You need to have funds in your PayPal balance. Learn more here.

The majority of store owners use PayPal as a payment gateway for their store, which means funds are constantly being added to the balance. You will need to use this balance to pay your Collaborators, or you can fund your PayPal yourself.

If you are using two gateways, for example – Shop Pay and PayPal. Roughly 50% of all sales go via PayPal on average with stores that use CollabPay. This means you should have plenty of funds in your PayPal account to pay Collaborators.

Connecting CollabPay with PayPal for automated payments

1. Go to CollabPay settings > PayPal Payouts > Click the “Login with PayPal” button

Simply press the button and it will direct you to a login page.

connect paypal

2. Click the “Agree & Connect” button

agree and connect

3. Done

after connect

How to apply for “PayPal Payouts”

You will need to apply to use “PayPal Payouts” for CollabPay automated payouts.

1. Scroll down here and click ‘Enable’

Please go to this page to enable the setting.

2. Click ‘Contact us’ and apply for payouts

contact button

3. Contact

Scroll down and click ‘Contact us’. You can either choose to call or message them. PayPal will usually get back within a few hours and process your request.

contact paypal button


Want to learn about how CollabPay works? See our guide on the workflow of CollabPay and how it works.

Avatar for Jason Clarke
Jason Clarke