Configure Odoo with paypal, Simple setup steps. Paypal is the easiest online payment acquirer to configure. It is also the only one without any subscription fee. We definitely advise it to any starter.

Set up your Paypal account

  • Create a Paypal Business Account or upgrade your account to Business account if you have a basic account.
  • Log in to Paypal and open the settings of your Profile.
  • Now enter the menu My selling tools.
  • Let’s start with the Website Preferences.
  • Turn on Auto Return and enter the Return URL: <your_instance_url>/shop/confirmation. Verify that this address uses the correct protocol (HTTP/HTTPS).
  • erp-paypal configuration
  • Turn on Payment Data Transfer. When saving, an Identity Token is generated. You will be later requested to enter it.
  • Then, get back to your profile to activate the Instant Payment Notification (IPN) in My selling tools.Enter the Notification URL: <your_instance_url>/payment/paypal/ipn


  • Now you must change the encoding format of the payment request sent by eCommerce to Paypal. To do so, get back to My selling tools and click PayPal button language encoding in More Selling Tools section.Then, click More Options and set the two default encoding formats as UTF-8.


    If you want your customers to pay without creating a Paypal account, Paypal Account Optional needs to be turned on.

Set up Parameters

  • Open Paypal setup form in Website or Sales or Accounting ‣ Settings ‣ Payment Acquirers+. Enter both your Email ID and your Merchant ID and check Use IPN.They are both provided in your Paypal profile, under My business info.
  • with Debug Mode or ask @snippetbucket support team to help to setup identity token.Then, go to Settings ‣ Technical ‣ Parameters ‣ System Parameters and create a parameter with following values:
    • Key: payment_paypal.pdt_token
    • Value: your Paypal Identity Token

Go live

Your configuration is now ready! You can make Paypal visible on your merchant interface and activate the Production mode.

Transaction fees

You can charge an extra to the customer to cover the transaction fees Paypal charges you. Once redirected to Paypal, your customer sees an extra applied to the order amount.

To activate this, go to the Configuration tab of Paypal config form in backend and check Add Extra Fees. Default fees for US can be seen here below.

To apply the right fees for your country, please refer to Paypal Fees.