Set up PayPal as a payment service in Xero

Accept online payments for your invoices using PayPal. To set this up, add PayPal as a payment service, then apply to a branding theme.

Before you start

  1. Add a bank account in Xero and set up a PayPal feed
  2. (Optional) Update your PayPal account settings to remove the £1,700 annual receiving limit (PayPal Help).

Add a payment service

  1. In the Settings menu, select General Settings.
  2. Under Connect, click Payment Services.
  3. Click Add Payment Service, then select PayPal.
  4. Enter a name to display in Xero and your PayPal email address.
  5. Under Payment account, select the bank account with a PayPal bank feed.
  6. If you want to automate your fees, under Fees Account, select Add account. Check the PayPal fees expense account details that Xero has entered and click Save.

    If you don't want to automate fees, unselect the checkbox.

  7. Click Save.

    Image showing the PayPal payment services set up screen.

Apply to a branding theme

  1. On the Payment Services screen, click Manage Themes.
  2. Next to the branding theme, select this PayPal service. If you've set up another payment service, you can select it as a credit card service.
  3. Click Save.