PayPal is one of the most famous payment gateways while Magento is one of the most popular eCommerce platforms. So, it would be strange if it didn't allow you to integrate PayPal into your online store. 

There is a variety of PayPal payment methods you can configure. However, in this article, you're going to configure PayPal Express Checkout in Magento 2.

It is probably the most popular PayPal payment method since it accepts almost all credit or debit cards and worldwide currencies.

With PayPal Express customers are redirected to the secure PayPal page where they fill out the payment details. Then they return to your website to finalize the order. Only after this, PayPal processes the transaction.

Besides, if you choose the PayPal Express Checkout, the PayPal button that allows your customers to checkout in one step will appear on the checkout.

To configure PayPal Express Checkout you need to fill out the required, basic, advanced, and additional features. But first, you need to go to Stores > Configuration > Sales > Payment Methods and find the PayPal Express Checkout option under Recommended Solutions tab.

Magento 2 PayPal Express Checkout

Note: remember that you have to register a PayPal business account or PayPal Payflow account to manage PayPal Express Checkout or any other PayPal Payment in Magento 2.

Follow these steps to configure PayPal Express Checkout in Magento 2.

1. Configure Required Settings

1. Specify the email associated with your PayPal merchant account in the Email Associated with PayPal Merchant Account. However, it is optional.

2. Set the API Authentication Methods:

  • API Signature — this method is easier to implement and it doesn’t expire.
  • API Certificate — this method is more secure and it expires after three years. 

3. Depending on the method you choose, fill out API Username, API Password, and API Signature or API Certificate.

4. Enable Sandbox Mode if you use credentials from a sandbox account. 

Note: only use credit card numbers recommended by PayPal to test the sandbox. Disable the sandbox mode before going live.

5. Enable the API Uses Proxy option and enter the Proxy Host and Proxy Port, in case you use a proxy server to connect Magento with PayPal. 

Required PayPal Settings in Magento

Once you finish with the required settings, Enable this Solution and the In-Context Checkout Experience if you want to provide your customers with an easier and simplified payment.

Required PayPal Settings

This is it for the required PayPal Express configurations. It is recommended to Save Config before moving to basic and advanced configurations.

2. Set Up Basic Settings

1. Give PayPal payment method a Title, so it is recognized on the checkout page.

2. Set the Sort Order which defines the place of the method in a list of Magento payment methods on checkout.

3. Set Payment Action to Authorization, Sale, or Order.

  • Authorization — after an order is placed, it is approved, but funds are not withdrawn until the merchant captures them (e.g once the order is approved in the admin).
  • Sale —  the funds are immediately withdrawn from the customers’ account.
  • Order — the funds are neither authorized, nor captured. Order is an agreement between PayPal and a merchant who can capture one or more amounts from the order total within 29 days.

In case you choose Order there are 3 more sections to fill out.

4. If you want to display the Check out with Paypal button on the product page, enable the Display on Product Details Page option.

Basic PayPal Express Settings

3. Fill Out Advanced Settings

  1. Choose whether to Display PayPal Express on Shopping Cart.
  2. Select which countries Payment will be Applicable From.
  3. To track payment system communication into the log file, enable Debug Mode.
  4. Enable SSL verification to verify the authenticity of the host.
  5. Enable the Transfer Cart Line Items if you want to display the summary of the customer’s order by line item from PayPal.
  6. Enable the Transfer Shipping Options if you want to include up to ten shipping options in the order summary.

Advanced PayPal Express Settings

7. Shortcut Buttons Flavor option defines the image used for PayPal acceptance. 

  • Static Image — won’t be changed dynamically.
  • Dynamic Image — will be changed from PayPal server dynamically.

8. Enable PayPal Guest Checkout if you want to allow PayPal customers to check out as guests, without registration.

9. Choose whether to Require Customer’s Billing Address.

10. Select the Billing Agreement Signup to define if your customer will be able to sign a billing agreement with your Magento 2 store in PayPal account (under the condition there are no active billing agreements in the customer account already). Scroll down to learn more.

11. Enable the Skip Order Review Step option if you down want a customer to review the order summary.

PayPal Setting Advanced

4. Configure PayPal Billing Agreement Settings

PayPal Billing Agreement Settings are offered to stores’ returning customers who want to utilize the billing agreement as a payment method. It simplifies the checkout process since customers don’t need to enter payment information every time a purchase is made. 

Instead, the payment system verifies the billing agreement by the unique number and charges the order amount from the customer’s account.

The billing agreement options appear only for customers who PayPal already authorized for multiple orders. PayPal issues a unique reference ID to identify orders associated with the Billing Agreement. Besides, customers can manage the billing agreements from their accounts dashboards.

The same, admin users can manage them in the billing agreement grid in the admin panel. From the same point admin can filter the agreements by ID, date, or status and cancel or delete them when necessary.

To configure PayPal Billing Agreement Settings:

  1. Enable this option.
  2. Give it a Title that will appear on the storefront (only for those that have been authorized).
  3. Define the Sort Order of the billing agreement payment method.
  4. Fill out the rest of the options that are the same as the advanced PayPal Express Checkout settings. Jump up to the previous section to check it.
  5. Enable the Allow in Billing Agreement Wizard option so customers can initiate an agreement from their customer account.

PayPal  Billing Agreement Settings in Magento

5. Set Settlement Report Settings

Settlement Report Setting is the PayPal standard requirement in Magento that consists of the SFTP Credentials and Scheduled Fetching sections you have to fill out.

  1. Enter the SFTP login credentials — Login and Password — if you are signed up for PayPal secure FTP server.
  2. Enable Sandbox Mode for running tests before going live.
  3. Set the Custom Endpoint Hostname or IP Address and Custom Path where reports are saved.
  4. Enable Automatic Fetching so reports are generated by schedule.
  5. Set the frequency of the fetching in the Schedule and Time of Day fields.

PayPal Settlement Reports Setting

6. Define Frontend Experience Settings

The last section of the PayPal Express configuration in Magento 2 is frontend settings that define the PayPal logo, page styles, and button options. This section also provides you with the opportunity to customize them on your store pages. 

  1. Select the PayPal Product Logo
  2. Define how PayPal Merchant Pages will look like.
  • Set the Page Style.
  • Enter the Header Image URL that will appear on the upper left corner of the checkout page (750x90 max).
  • Set the Header Background, Header Border, and Page Background Colors in six-character codes without [#].

PayPal Frontend Experience Settings

And finally the Smart Buttons.

PayPal Smart Buttons

This feature allows you to define how the Check out with Paypal buttons will appear on your Magento 2 store pages.

  1. Enable Customize Button option for Checkout, Product, Cart Pages, and Mini Cart.
  2. Set Label, Layout, Shape, and Color options for those pages you decided to customize buttons on.
  3. Disable Funding Options that go with the Smart Buttons feature.

Customize PayPal Buttons

Note that default PayPal buttons are well-recognized and may contribute to the success of your checkout rate. So, it is recommended to leave them as they are. However, you may need to customize them to fit your styling too.

Once you configure PayPal Express Checkout in Magento 2, your customers will see it as a payment option on checkout. Don't forget to set it at the top of the other Magento payment methods, so customers can see it right away.

Besides, there is one more option to make it more attractive.

PayPal Express Checkout in Magento 2

To make PayPal Express grab customers' attention you can add icon to the payment method or set it as the default payment method on Magento checkout.