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Connect PayPal to Odoo: Payment Integration Guide

DeployMonkey Team · March 22, 2026 9 min read

Why PayPal + Odoo?

PayPal is accepted in 200+ countries with 400M+ active accounts. For international businesses, PayPal provides a trusted payment option alongside card payments. Odoo includes a native PayPal payment provider — configuration takes 10 minutes.

Setup Steps

1. PayPal Business Account

  1. Sign up at paypal.com/business
  2. Verify your business account
  3. Go to Developer Dashboard (developer.paypal.com)
  4. Create a REST API app → get Client ID and Secret

2. Configure in Odoo

  1. Invoicing → Configuration → Payment Providers
  2. Select PayPal
  3. Enter PayPal Email (your business PayPal email)
  4. Enter Client ID and Client Secret (from REST API app)
  5. Set State: Test Mode (for sandbox testing)

3. Webhook Configuration

# In PayPal Developer Dashboard:
# My Apps → select your app → Webhooks
# Add webhook URL: https://your-odoo.com/payment/paypal/webhook

# Events to subscribe:
# PAYMENT.CAPTURE.COMPLETED
# PAYMENT.CAPTURE.DENIED
# PAYMENT.CAPTURE.REFUNDED

4. Test with Sandbox

# PayPal Sandbox test accounts:
# Developer Dashboard → Sandbox → Accounts
# Use sandbox buyer account to test payments
# Sandbox URL: sandbox.paypal.com (auto-used in test mode)

PayPal Payment Flow

  1. Customer clicks "Pay" on Odoo invoice/checkout
  2. Redirected to PayPal payment page
  3. Customer logs in to PayPal (or pays with card via PayPal)
  4. Customer approves payment
  5. Redirected back to Odoo with confirmation
  6. PayPal webhook confirms payment → Odoo marks invoice as paid

Features

Multi-Currency

PayPal supports 25+ currencies. Odoo sends the invoice currency to PayPal. PayPal handles the conversion if the buyer pays in a different currency.

Recurring Payments

PayPal subscriptions can be used with Odoo Subscriptions for recurring billing. Configuration requires PayPal subscription plan setup.

Refunds

Process refunds from Odoo: create a credit note, and Odoo sends a refund request to PayPal via API.

Troubleshooting

IssueCauseFix
Payment not confirmed in OdooWebhook not configured or blockedVerify webhook URL in PayPal Dashboard and check Odoo logs
"PayPal account not verified"Business account not fully verifiedComplete PayPal business verification
Currency mismatchInvoice currency not enabled in PayPalEnable the currency in PayPal account settings
Test payments not workingUsing live credentials in test modeUse sandbox credentials for test mode
Customer cannot payPayPal blocks certain countriesCheck PayPal's supported countries list

PayPal vs Stripe

AspectPayPalStripe
Global reach200+ countries46 countries
User base400M+ accountsCard payments (any card)
Fees2.9% + $0.302.9% + $0.30
Payout speed1-3 business days2 business days
Best forInternational B2CCard payments, SaaS

Recommendation: offer both PayPal and Stripe to maximize customer payment options.

DeployMonkey + PayPal

Deploy Odoo with eCommerce on DeployMonkey, configure PayPal in 10 minutes, and start accepting international payments. The AI agent helps troubleshoot payment issues and optimize checkout conversion.