# PayPal service provider for 2Checkout

## Overview

PayPal Service Provider is a new self-service PayPal solution offered to merchants signed on our PSP model, allowing for multiple payment options to be available under the same high-conversion shopping carts.

## Availability

Merchants eligible for the PayPal Service Provider need to meet the following criteria:

* Business Model: Payment Service Provider (PSP)
* Merchant country: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.

## Prerequisites

Merchants need to have or create a valid PayPal business account.

If you don't have a PayPal account, follow this [Sign up](https://www.paypal.com/bizsignup/#/singlePageSignup). If you already have an account, simply [Log in](https://www.paypal.com/signin).

## Workflow

To be able to accept payments via PayPal in your 2Checkout account, you first need to generate the API credentials from your verified PayPal account dashboard. In order to do this, perform the following steps.

### PayPal Settings

1. Log in to your PayPal account.
2. Navigate to *Account Settings > Account access*. 
3. On the *Account access* page, click on **Update** next to **API access**.<br>

   <div data-with-frame="true"><figure><img src="/files/zKakzERO6ITRhL68JPOj" alt=""><figcaption></figcaption></figure></div>
4. On the next page, scroll down to **NVP/SOAP API integration** and click on **Manage API credentials.** <br>

   <div data-with-frame="true"><figure><img src="/files/luYq9AEHL0y1zPbZVKI5" alt=""><figcaption></figcaption></figure></div>
5. PayPal will then generate API Credentials that you can use in your 2Checkout account.\
   \
   To complete setting up PayPal in your 2Checkout account, you will need to collect and use the following credential information:
   * API Username&#x20;
   * API Password&#x20;
   * Signature<br>

     <div data-with-frame="true"><figure><img src="/files/ri3zUV2La2ogutbPqTNO" alt=""><figcaption></figcaption></figure></div>

### 2Checkout Settings

1. Once you have identified your PayPal credentials, log in to your [2Checkout Merchant Control Panel](https://secure.2checkout.com/cpanel/) account.
2. Navigate to *Setup > Ordering options* and click on the [Payment methods](https://secure.2checkout.com/cpanel/order_settings.php?tab=payment_methods) tab.<br>

   <div data-with-frame="true"><figure><img src="/files/qp857Ep7OEmfvd5zZGnf" alt=""><figcaption></figcaption></figure></div>
3. On the *Payment methods* page, click on the **Settings cogwheel** next to the **PayPal** payment option.<br>

   <div data-with-frame="true"><figure><img src="/files/aYwOweMbqemgQZDu9KP7" alt=""><figcaption></figcaption></figure></div>
4. On the **PayPal payment settings** page paste the credentials you copied previously from the PayPal admin.
   * API Password
   * API Signature
   * API Username<br>

     <div data-with-frame="true"><figure><img src="/files/pw2PPmXzvVUZKR11vzBc" alt=""><figcaption></figcaption></figure></div>
5. Click **Save**. You can now accept payments via PayPal in your 2Checkout account.&#x20;

## Reference Transactions

If you are selling subscription-based products or services or you are looking to improve the shopping experience for returning customers using 2Checkout, make sure that **reference transactions are enabled** for your PayPal business account.&#x20;

Payments through reference (the reference of the billing agreement) are not available by default in PayPal business accounts. To activate this feature, you need to [contact PayPal](https://www.paypal.com/us/smarthelp/contact-us) and request the enablement of reference transactions.

{% hint style="warning" %}
It is up to PayPal to validate if certain requirements are met or not, before it enables support for reference transactions for your account.
{% endhint %}


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