# PayPal

This document guides you through setting up PayPal as a payment provider in your Medusa server, admin, and storefront using the [PayPal plugin](https://github.com/medusajs/medusa/tree/master/packages/medusa-payment-paypal).

## Overview

[PayPal](https://www.paypal.com) is a payment provider used by millions around the world. It allows customers to purchase orders from your website using their PayPal account rather than the need to enter their card details.

As a developer, you can use PayPal’s SDKs and APIs to integrate PayPal as a payment method into your ecommerce store. You can test out the payment method in sandbox mode before going live with it as a payment method.

Using the `medusa-payment-paypal` plugin, this guide shows you how to set up your Medusa server with PayPal as a payment provider.

## Prerequisites

Before you proceed with this guide, make sure you create a [PayPal account](https://www.paypal.com). You also need a PayPal Developer account and retrieve the Client ID and Client Secret. You can learn more about how to do that in [PayPal’s documentation](https://developer.paypal.com/api/rest/).

In addition, you need to configure a webhook listener on your PayPal Developer Dashboard and obtain the webhook ID. This is necessary for Webhooks to work.

Webhooks are used in scenarios where the customer might leave the page during the authorization and before the checkout flow is fully complete. It will then create the order or swap after the payment is authorized if they weren’t created

Additionally, you need a Medusa server installed and set up. If not, you can follow our [quickstart guide](https://docs.medusajs.com/quickstart/quick-start) to get started.

You also need [Medusa Admin](../admin/quickstart.md) installed to enable PayPal as a payment provider. You can alternatively use our [REST APIs](https://docs.medusajs.com/api/admin/auth).

## Plugin Installation

In the root of your Medusa server, run the following command to install the PayPal plugin:

```bash npm2yarn
npm install medusa-payment-paypal
```

### Plugin Configuration

Next, you need to add configurations for your PayPal plugin.

In the `.env` file add the following new environment variables:

```bash
PAYPAL_SANDBOX=true
PAYPAL_CLIENT_ID=<CLIENT_ID>
PAYPAL_CLIENT_SECRET=<CLIENT_SECRET>
PAYPAL_AUTH_WEBHOOK_ID=<WEBHOOK_ID>
```

Where `<CLIENT_ID>`, `<CLIENT_SECRET>`, and `<WEBHOOK_ID>` are the keys you retrieved from the PayPal Developer dashboard as explained in the [Prerequisites](#prerequisites) section.

Notice that during development it’s highly recommended to set `PAYPAL_SANDBOX` to `true` and ensure you have [sandbox accounts set up in PayPal](https://developer.paypal.com/api/rest/sandbox/).

Then, in `medusa-config.js`, add the PayPal plugin to the `plugins` array with the configurations necessary:

```jsx
const plugins = [
  //other plugins...
  {
    resolve: `medusa-payment-paypal`,
    options: {
      sandbox: process.env.PAYPAL_SANDBOX,
      client_id: process.env.PAYPAL_CLIENT_ID,
      client_secret: process.env.PAYPAL_CLIENT_SECRET,
      auth_webhook_id: process.env.PAYPAL_AUTH_WEBHOOK_ID
    }
  }
];
```

That’s all you need to install PayPal on your Medusa server!

## Admin Setup

The next step is to enable PayPal as a payment provider in at least one region from the Medusa Admin.

Run your Medusa server and Medusa admin, then open the Medusa admin and login.

Choose Settings from the Sidebar. Then, choose Regions.

![Region Settings](https://i.imgur.com/wRkmbLY.png)

Then, choose the regions you want to add PayPal as a payment provider. In the right-side settings, scroll down to “Payment Providers” and choose “paypal”.

![Choose PayPal](https://i.imgur.com/AJ2Yez8.png)

Once you’re done, click Save. PayPal is now a payment provider in your store in the regions you added it to.

## Storefront Setup

This section will take you through the steps to add PayPal as a payment method on the storefront. It includes the steps necessary when using one of Medusa’s official storefronts as well as your own custom React-based storefront.

:::note

It is recommended to read through the [Frontend Checkout Flow](/advanced/storefront/how-to-implement-checkout-flow) first to fully understand how payment is implemented on the storefront.

:::

### Process Overview

Although the 3 next sections have different implementations to add PayPal into your storefront, they essentially follow the same process:

1. Show PayPal’s button if the PayPal provider is available for the current cart.
2. When the button is clicked, open PayPal’s payment portal and wait for the customer to authorize the payment.
3. If the payment is authorized successfully, set PayPal’s [Payment Session](../advanced/backend/payment/overview.md#payment-session) as the session used to perform the payment for the current cart, then update the Payment Session on the server with the data received from PayPal’s payment portal. This data is essential to the server to verify the authorization and perform additional payment processing later such as capturing payment.
4. Complete the cart to create the order.

:::note

In Medusa, by default, payments are authorized during checkout, but the payment is not captured right away. The payment should be manually [captured from the Medusa Admin](#capture-payment).

:::

## Next.js Storefront

Medusa has a Next.js storefront that you can easily use with your Medusa server. If you don’t have the storefront installed, you can follow [this quickstart guide](../starters/nextjs-medusa-starter.md).

In your `.env.local` file (or the file you’re using for your environment variables), add the following variable with its value set to the Client ID:

```bash
NEXT_PUBLIC_PAYPAL_CLIENT_ID=<CLIENT_ID>
```

Then, install [PayPal’s React components](https://www.npmjs.com/package/@paypal/react-paypal-js) library:

```bash npm2yarn
npm install @paypal/react-paypal-js
```

Next, create a new file `components/checkout/paypal.jsx` with the following content:

```jsx
import { PayPalButtons, PayPalScriptProvider } from "@paypal/react-paypal-js";
import React, { useContext, useState } from "react";

import { BiLeftArrowAlt } from "react-icons/bi";
import DisplayContext from "../../context/display-context";
import StoreContext from "../../context/store-context";
import { createClient } from "../../utils/client"
import styles from "../../styles/injectable-payment-card.module.css";
import { useRouter } from "next/router";

const paypalClientId = process.env.NEXT_PUBLIC_PAYPAL_CLIENT_ID || ""

const Paypal = () => {
  const [error, setError] = useState(null);
  const [processing, setProcessing] = useState("");
  const { cart, setPaymentSession } = useContext(StoreContext);
  const { updateCheckoutStep } = useContext(DisplayContext);

  const router = useRouter();

  const client = createClient()

  const handleSubmit = async (data, actions) => {
    actions.order.authorize().then(async (authorization) => {
      if (authorization.status !== 'COMPLETED') {
        setError(`An error occurred, status: ${authorization.status}`);
        setProcessing(false);
        return;
      }

      const { cart } = await setPaymentSession("paypal")

      if (!cart) {
        setProcessing(false)
        return
      }

      await client.carts.updatePaymentSession(cart.id, "paypal", {
        data: {
          data: {
            ...authorization
          }
        }
      });

      setError(null);
      setProcessing(false);
      router.push(`/payment`);
    })
  };

  return (
    <>
      <PayPalScriptProvider options={{ 
        "client-id": paypalClientId,
        "currency": cart.region.currency_code.toUpperCase(),
        "intent": "authorize"
      }}>
          {error && (
            <span className="text-rose-500 mt-4">{error}</span>
          )}
          <PayPalButtons 
            style={{ layout: "horizontal" }}
            onApprove={handleSubmit}
            disabled={processing}
          />
      </PayPalScriptProvider>
      <button
          className={styles.stepBack}
          onClick={() => updateCheckoutStep(2)}
        >
          <BiLeftArrowAlt /> Back to shipping method
        </button>
    </>
  )
}

export default Paypal
```

Here’s briefly what this code snippet does:

1. This component renders a PayPal button to initialize the payment using PayPal. You use the components from the PayPal React components library to render the button and you pass the `PayPalScriptProvider` component the Client ID.
2. When the button is clicked, the `handleSubmit` function is executed. In this method, you initialize the payment authorization using `actions.order.authorize()`. It takes the customer to another page to log in with PayPal and authorize the payment.
3. After the payment is authorized successfully on PayPal’s portal, the fulfillment function passed to `actions.order.authorize().then` will be executed.
4. In the fulfillment function, you first ensure that the payment session for the PayPal payment provider is set as the [selected Payment Session in the cart](https://docs.medusajs.com/api/store/cart/select-a-payment-session). Then, you send a request to the server to [update the payment session](https://docs.medusajs.com/api/store/cart/update-a-payment-session) data with the authorization data received from PayPal.
5. After all that is done successfully, you navigate to the `/payment` page which will automatically [complete the cart and place the order](https://docs.medusajs.com/api/store/cart/complete-a-cart).

The last step is to add this component as the component to render when PayPal is available as a payment provider.

In `src/checkout/payment-step.jsx` you’ll find in the return statement a switch statement that checks the payment provider for each payment session and renders the component based on the ID. Add before the `default` case a case for `paypal`:

```jsx
switch (ps.provider_id) {
  case "stripe":
    //..
  case "manual":
    //...
  case "paypal":
    return (
      <div key="paypal">
        <h2>PayPal Payment</h2>
        <Paypal />
      </div>
    )
  default:
    return null;
}
```

Make sure to also import the `Paypal` component at the top of the file:

```jsx
import Paypal from "./paypal";
```

That’s all you need to integrate PayPal into the Next.js storefront.

Now, start the Medusa server and the Next.js storefront server. Try adding an item into the cart and proceeding to checkout. When you reach the payment step, you should see the PayPal button.

![PayPal Button](https://i.imgur.com/bDhBcV3.png)

You can test out the payment with PayPal using your sandbox account.

### Gatsby Storefront

Medusa also has a Gatsby storefront that you can use as your ecommerce storefront. If you don’t have the storefront installed, you can follow [this quickstart guide](../starters/gatsby-medusa-starter.md).

In your `.env.development` file (or the file you’re using for your environment variables) add the following variable with its value set to the Client ID:

```bash
GATSBY_PAYPAL_CLIENT_ID=<CLIENT_ID>
```

Then, install [PayPal’s React components](https://www.npmjs.com/package/@paypal/react-paypal-js) library:

```bash npm2yarn
npm install @paypal/react-paypal-js
```

Next, create a new file `src/components/payment/paypal-payment/index.jsx` with the following content:

```jsx
import { PayPalButtons, PayPalScriptProvider } from "@paypal/react-paypal-js";
import React, { useMemo, useState } from "react";

import { navigate } from "gatsby"
import { useCart } from "../../../hooks/use-cart"
import { useMedusa } from "../../../hooks/use-medusa";

const paypalClientId = process.env.GATSBY_PAYPAL_CLIENT_ID || ""

const PaypalPayment = () => {
  const { 
    cart,
    actions: { completeCart, setPaymentSession },
  } = useCart()
  const [errorMessage, setErrorMessage] = useState(undefined)
  const [processing, setProcessing] = useState(false)

  const client = useMedusa()

  const paypalSession = useMemo(() => {
    if (cart.payment_sessions) {
      return cart.payment_sessions.find(s => s.provider_id === "paypal")
    }

    return null
  }, [cart.payment_sessions])

  if (!paypalSession) {
    return null
  }

  const completeOrder = async (authorizationOrder) => {
    const cart = await setPaymentSession("paypal")

    if (!cart) {
      setProcessing(false)
      return
    }

    await client.carts.updatePaymentSession(cart.id, "paypal", {
      data: {
        data: {
          ...authorizationOrder
        }
      }
    });

    const order = await completeCart(cart.id)

    if (!order || order.object !== "order") {
      setProcessing(false)
      return
    }

    setProcessing(false)
    navigate("/order-confirmed", { state: { order } })
  }

  const handlePayment = (data, actions) => {
    actions.order.authorize().then((authorization) => {
      if (authorization.status !== 'COMPLETED') {
        setErrorMessage(`An error occurred, status: ${authorization.status}`);
        setProcessing(false);
        return;
      }

      completeOrder(authorization)
    })
  }

  return (
    <PayPalScriptProvider options={{ 
      "client-id": paypalClientId,
      "currency": cart.region.currency_code.toUpperCase(),
      "intent": "authorize"
    }}>
        {errorMessage && (
          <span className="text-rose-500 mt-4">{errorMessage}</span>
        )}
        <PayPalButtons 
          style={{ layout: "horizontal" }}
          onApprove={handlePayment}
          disabled={processing}
        />
    </PayPalScriptProvider>
  )
}

export default PaypalPayment;
```

Here’s briefly what this code snippet does:

1. This component renders a PayPal button to initialize the payment using PayPal. You use the components from the PayPal React components library to render the button and you pass the `PayPalScriptProvider` component the Client ID.
2. When the button is clicked, the `handlePayment` function is executed. In this method, you initialize the payment authorization using `actions.order.authorize()`. It takes the customer to another page to log in with PayPal and authorize the payment.
3. After the payment is authorized successfully on PayPal’s portal, the fulfillment function passed to `actions.order.authorize().then` will be executed which calls the `completeOrder` function.
4. In `completeOrder`, you first ensure that the payment session for the PayPal payment provider is set as the [selected Payment Session in the cart](https://docs.medusajs.com/api/store/cart/select-a-payment-session). Then, you send a request to the server to [update the payment session](https://docs.medusajs.com/api/store/cart/update-a-payment-session) data with the authorization data received from PayPal.
5. You then [complete the cart and place the order](https://docs.medusajs.com/api/store/cart/complete-a-cart). If that is done successfully, you navigate to the `/order-confirmed` page.

The last step is to add this component as the component to render when PayPal is available as a payment provider.

In `src/components/payment/index.js` you’ll find in the return statement a switch statement that checks the payment provider for each payment session and renders the component based on the ID. Add before the `default` case a case for `paypal`:

```jsx
switch (ps.provider_id) {
  case "stripe":
    //...
  case "manual":
    //...
  case "paypal":
    return <PaypalPayment />
  default:
    return null
}
```

Make sure to also import the `PayPalPayment` component at the top of the file:

```jsx
import PaypalPayment from "./paypal-payment"
```

That’s all you need to integrate PayPal into the Gatsby storefront.

Now, start the Medusa server and the Gatsby storefront server. Try adding an item into the cart and proceeding to checkout. When you reach the payment step, you should see the PayPal button.

![PayPal Button](https://i.imgur.com/SMLrptP.png)

You can test out the payment with PayPal using your sandbox account.

### Custom Storefront

This section guides you to add PayPal into a React-based framework. The instructions are general instructions that you can use in your storefront.

In your storefront, you need to install the [PayPal React components library](https://www.npmjs.com/package/@paypal/react-paypal-js) and the [Medusa JS Client library](https://www.npmjs.com/package/@medusajs/medusa-js):

```bash npm2yarn
npm install @paypal/react-paypal-js @medusajs/medusa-js
```

Then, add the Client ID as an environment variable based on the framework you’re using.

Next, create the file that will hold the PayPal component with the following content:

```jsx
import { PayPalButtons, PayPalScriptProvider } from "@paypal/react-paypal-js";
import { useEffect, useState } from "react"

import Medusa from "@medusajs/medusa-js"

function Paypal() {
  const client = new Medusa();
  const [errorMessage, setErrorMessage] = useState(undefined)
  const [processing, setProcessing] = useState(false)
  const cart //TODO retrieve the cart here

  const handlePayment = (data, actions) => {
    actions.order.authorize().then(async (authorization) => {
      if (authorization.status !== 'COMPLETED') {
        setErrorMessage(`An error occurred, status: ${authorization.status}`);
        setProcessing(false);
        return;
      }

      const response = await client.carts.setPaymentSession(cart.id, {
        "provider_id": "paypal"
      });

      if (!response.cart) {
        setProcessing(false)
        return
      }

      await client.carts.updatePaymentSession(cart.id, "paypal", {
        data: {
          data: {
            ...authorization
          }
        }
      });

      const {data} = await client.carts.complete(cart.id)

      if (!data || data.object !== "order") {
        setProcessing(false)
        return
      }
      
      //order successful
      alert("success")
    })
  }

  return (
    <div style={{marginTop: "10px", marginLeft: "10px"}}>
      {cart !== undefined && (
        <PayPalScriptProvider options={{ 
          "client-id": <CLIENT_ID>,
          "currency": "EUR",
          "intent": "authorize"
        }}>
            {errorMessage && (
              <span className="text-rose-500 mt-4">{errorMessage}</span>
            )}
            <PayPalButtons 
              style={{ layout: "horizontal" }}
              onApprove={handlePayment}
              disabled={processing}
            />
        </PayPalScriptProvider>
      )}
    </div>
  );
}

export default Paypal;
```

Here’s briefly what this code snippet does:

1. At the beginning of the component, the Medusa client is initialized using the JS Client you installed.
2. You also need to retrieve the cart. Ideally, the cart should be managed through a context. So, every time the cart has been updated the cart should be updated in the context to be accessed from all components.
3. This component renders a PayPal button to initialize the payment using PayPal. You use the components from the PayPal React components library to render the button and you pass the `PayPalScriptProvider` component the Client ID. Make sure to replace `<CLIENT_ID>` with the environment variable you added.
4. When the button is clicked, the `handlePayment` function is executed. In this method, you initialize the payment authorization using `actions.order.authorize()`. It takes the customer to another page to log in with PayPal and authorize the payment.
5. After the payment is authorized successfully on PayPal’s portal, the fulfillment function passed to `actions.order.authorize().then` will be executed.
6. In the fulfillment function, you first ensure that the payment session for the PayPal payment provider is set as the [selected Payment Session in the cart](https://docs.medusajs.com/api/store/cart/select-a-payment-session). Then, you send a request to the server to [update the payment session](https://docs.medusajs.com/api/store/cart/update-a-payment-session) data with the authorization data received from PayPal.
7. You then [complete the cart and place the order](https://docs.medusajs.com/api/store/cart/complete-a-cart). If that is done successfully, you just show a success alert. You can change this based on the behavior you want in your storefront.

You can then import this component where you want to show it in your storefront.

If you run the Medusa server and the storefront server, you should see the PayPal button on checkout.

![PayPal Button](https://i.imgur.com/PsibgPY.png)

## Capture Payment

After the customer places an order, you can see the order on the admin panel. In the payment information under the “Payment” section, you should see a “Capture” button.

![Capture Payment](https://i.imgur.com/Mx357yY.png)

Clicking this button lets you capture the payment for an order. You can also refund payments if an order has captured payments.

Refunding or Capturing payments is reflected in your PayPal dashboard as well.

## What's Next 🚀

- Check out [more plugins](https://github.com/medusajs/medusa/tree/master/packages) you can add to your store.