diff --git a/packages/medusa-payment-paypal/.babelrc b/packages/medusa-payment-paypal/.babelrc
new file mode 100644
index 0000000000..75cbf1558b
--- /dev/null
+++ b/packages/medusa-payment-paypal/.babelrc
@@ -0,0 +1,14 @@
+{
+  "plugins": [
+    "@babel/plugin-proposal-optional-chaining",
+    "@babel/plugin-proposal-class-properties",
+    "@babel/plugin-transform-instanceof",
+    "@babel/plugin-transform-classes"
+  ],
+  "presets": ["@babel/preset-env"],
+  "env": {
+    "test": {
+      "plugins": ["@babel/plugin-transform-runtime"]
+    }
+  }
+}
diff --git a/packages/medusa-payment-paypal/.eslintrc b/packages/medusa-payment-paypal/.eslintrc
new file mode 100644
index 0000000000..2a889697f0
--- /dev/null
+++ b/packages/medusa-payment-paypal/.eslintrc
@@ -0,0 +1,9 @@
+{
+  "plugins": ["prettier"],
+  "extends": ["prettier"],
+  "rules": {
+    "prettier/prettier": "error",
+    "semi": "error",
+    "no-unused-expressions": "true"
+  }
+}
diff --git a/packages/medusa-payment-paypal/.gitignore b/packages/medusa-payment-paypal/.gitignore
new file mode 100644
index 0000000000..5b89b55576
--- /dev/null
+++ b/packages/medusa-payment-paypal/.gitignore
@@ -0,0 +1,16 @@
+/lib
+node_modules
+.DS_store
+.env*
+/*.js
+!index.js
+yarn.lock
+
+/dist
+
+/api
+/services
+/models
+/subscribers
+/loaders
+/__mocks__
diff --git a/packages/medusa-payment-paypal/.npmignore b/packages/medusa-payment-paypal/.npmignore
new file mode 100644
index 0000000000..73122644c5
--- /dev/null
+++ b/packages/medusa-payment-paypal/.npmignore
@@ -0,0 +1,13 @@
+/lib
+node_modules
+.DS_store
+.env*
+/*.js
+!index.js
+yarn.lock
+src
+.gitignore
+.eslintrc
+.babelrc
+.prettierrc
+
diff --git a/packages/medusa-payment-paypal/.prettierrc b/packages/medusa-payment-paypal/.prettierrc
new file mode 100644
index 0000000000..70175ce150
--- /dev/null
+++ b/packages/medusa-payment-paypal/.prettierrc
@@ -0,0 +1,7 @@
+{
+  "endOfLine": "lf",
+  "semi": false,
+  "singleQuote": false,
+  "tabWidth": 2,
+  "trailingComma": "es5"
+}
\ No newline at end of file
diff --git a/packages/medusa-payment-paypal/README.md b/packages/medusa-payment-paypal/README.md
new file mode 100644
index 0000000000..777be3ed58
--- /dev/null
+++ b/packages/medusa-payment-paypal/README.md
@@ -0,0 +1,11 @@
+# medusa-payment-paypal
+
+## Options
+
+```
+sandbox: [default: false],
+client_id: "CLIENT_ID", REQUIRED
+client_secret: "CLIENT_SECRET", REQUIRED
+auth_webhook_id: REQUIRED for webhook to work
+```
+
diff --git a/packages/medusa-payment-paypal/index.js b/packages/medusa-payment-paypal/index.js
new file mode 100644
index 0000000000..172f1ae6a4
--- /dev/null
+++ b/packages/medusa-payment-paypal/index.js
@@ -0,0 +1 @@
+// noop
diff --git a/packages/medusa-payment-paypal/package.json b/packages/medusa-payment-paypal/package.json
new file mode 100644
index 0000000000..f43961bf73
--- /dev/null
+++ b/packages/medusa-payment-paypal/package.json
@@ -0,0 +1,47 @@
+{
+  "name": "medusa-payment-paypal",
+  "version": "1.0.0",
+  "description": "Paypal Payment provider for Meduas Commerce",
+  "main": "index.js",
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/medusajs/medusa",
+    "directory": "packages/medusa-payment-paypal"
+  },
+  "author": "Sebastian Rindom",
+  "license": "MIT",
+  "devDependencies": {
+    "@babel/cli": "^7.7.5",
+    "@babel/core": "^7.7.5",
+    "@babel/node": "^7.7.4",
+    "@babel/plugin-proposal-class-properties": "^7.7.4",
+    "@babel/plugin-proposal-optional-chaining": "^7.12.7",
+    "@babel/plugin-transform-classes": "^7.9.5",
+    "@babel/plugin-transform-instanceof": "^7.8.3",
+    "@babel/plugin-transform-runtime": "^7.7.6",
+    "@babel/preset-env": "^7.7.5",
+    "@babel/register": "^7.7.4",
+    "@babel/runtime": "^7.9.6",
+    "client-sessions": "^0.8.0",
+    "cross-env": "^5.2.1",
+    "eslint": "^6.8.0",
+    "jest": "^25.5.2",
+    "medusa-test-utils": "^1.1.2"
+  },
+  "scripts": {
+    "build": "babel src -d . --ignore **/__tests__",
+    "prepare": "cross-env NODE_ENV=production npm run build",
+    "watch": "babel -w src --out-dir . --ignore **/__tests__",
+    "test": "jest"
+  },
+  "peerDependencies": {
+    "medusa-interfaces": "1.x"
+  },
+  "dependencies": {
+    "@paypal/checkout-server-sdk": "^1.0.2",
+    "body-parser": "^1.19.0",
+    "express": "^4.17.1",
+    "medusa-core-utils": "^1.1.0"
+  },
+  "gitHead": "0646bd395a6056657cb0aa93c13699c4a9dbbcdd"
+}
diff --git a/packages/medusa-payment-paypal/src/api/index.js b/packages/medusa-payment-paypal/src/api/index.js
new file mode 100644
index 0000000000..50feeb7074
--- /dev/null
+++ b/packages/medusa-payment-paypal/src/api/index.js
@@ -0,0 +1,10 @@
+import { Router } from "express"
+import hooks from "./routes/hooks"
+
+export default (container) => {
+  const app = Router()
+
+  hooks(app)
+
+  return app
+}
diff --git a/packages/medusa-payment-paypal/src/api/middlewares/await-middleware.js b/packages/medusa-payment-paypal/src/api/middlewares/await-middleware.js
new file mode 100644
index 0000000000..1c3692b377
--- /dev/null
+++ b/packages/medusa-payment-paypal/src/api/middlewares/await-middleware.js
@@ -0,0 +1 @@
+export default (fn) => (...args) => fn(...args).catch(args[2])
diff --git a/packages/medusa-payment-paypal/src/api/middlewares/index.js b/packages/medusa-payment-paypal/src/api/middlewares/index.js
new file mode 100644
index 0000000000..c784e319a9
--- /dev/null
+++ b/packages/medusa-payment-paypal/src/api/middlewares/index.js
@@ -0,0 +1,5 @@
+import { default as wrap } from "./await-middleware"
+
+export default {
+  wrap,
+}
diff --git a/packages/medusa-payment-paypal/src/api/routes/hooks/index.js b/packages/medusa-payment-paypal/src/api/routes/hooks/index.js
new file mode 100644
index 0000000000..9205bae966
--- /dev/null
+++ b/packages/medusa-payment-paypal/src/api/routes/hooks/index.js
@@ -0,0 +1,13 @@
+import { Router } from "express"
+import bodyParser from "body-parser"
+import middlewares from "../../middlewares"
+
+const route = Router()
+
+export default (app) => {
+  app.use("/paypal", route)
+
+  route.use(bodyParser.json())
+  route.post("/hooks", middlewares.wrap(require("./paypal").default))
+  return app
+}
diff --git a/packages/medusa-payment-paypal/src/api/routes/hooks/paypal.js b/packages/medusa-payment-paypal/src/api/routes/hooks/paypal.js
new file mode 100644
index 0000000000..e0ef09b680
--- /dev/null
+++ b/packages/medusa-payment-paypal/src/api/routes/hooks/paypal.js
@@ -0,0 +1,55 @@
+export default async (req, res) => {
+  const auth_algo = req.headers["paypal-auth-algo"]
+  const cert_url = req.headers["paypal-cert-url"]
+  const transmission_id = req.headers["paypal-transmission-id"]
+  const transmission_sig = req.headers["paypal-transmission-sig"]
+  const transmission_time = req.headers["paypal-transmission-time"]
+
+  const paypalService = req.scope.resolve("paypalProviderService")
+
+  try {
+    await paypalService.verifyWebhook({
+      auth_algo,
+      cert_url,
+      transmission_id,
+      transmission_sig,
+      transmission_time,
+      webhook_event: req.body,
+    })
+  } catch (err) {
+    res.sendStatus(401)
+    return
+  }
+
+  try {
+    const authId = req.body.resource.id
+    const auth = await paypalService.retrieveAuthorization(authId)
+
+    const order = await paypalService.retrieveOrderFromAuth(auth)
+
+    const purchaseUnit = order.purchase_units[0]
+    const cartId = purchaseUnit.custom_id
+
+    const manager = req.scope.resolve("manager")
+    const cartService = req.scope.resolve("cartService")
+    const orderService = req.scope.resolve("orderService")
+
+    await manager.transaction(async (m) => {
+      const order = await orderService
+        .withTransaction(m)
+        .retrieveByCartId(cartId)
+        .catch((_) => undefined)
+
+      if (!order) {
+        await cartService.withTransaction(m).setPaymentSession(cartId, "paypal")
+        await cartService.withTransaction(m).authorizePayment(cartId)
+        await orderService.withTransaction(m).createFromCart(cartId)
+      }
+    })
+
+    res.sendStatus(200)
+  } catch (err) {
+    console.error(err)
+    res.sendStatus(409)
+  }
+}
diff --git a/packages/medusa-payment-paypal/src/services/paypal-provider.js b/packages/medusa-payment-paypal/src/services/paypal-provider.js
new file mode 100644
index 0000000000..acb03fa734
--- /dev/null
+++ b/packages/medusa-payment-paypal/src/services/paypal-provider.js
@@ -0,0 +1,402 @@
+import _ from "lodash"
+import PayPal from "@paypal/checkout-server-sdk"
+import { PaymentService } from "medusa-interfaces"
+
+class PayPalProviderService extends PaymentService {
+  static identifier = "paypal"
+
+  constructor({ customerService, totalsService, regionService }, options) {
+    super()
+
+    /**
+     * Required PayPal options:
+     *  {
+     *    sandbox: [default: false],
+     *    client_id: "CLIENT_ID", REQUIRED
+     *    client_secret: "CLIENT_SECRET", REQUIRED
+     *    auth_webhook_id: REQUIRED for webhook to work
+     *  }
+     */
+    this.options_ = options
+
+    let environment
+    if (this.options_.sandbox) {
+      environment = new PayPal.core.SandboxEnvironment(
+        options.client_id,
+        options.client_secret
+      )
+    } else {
+      environment = new PayPal.core.LiveEnvironment(
+        options.client_id,
+        options.client_secret
+      )
+    }
+
+    /** @private @const {PayPalHttpClient} */
+    this.paypal_ = new PayPal.core.PayPalHttpClient(environment)
+
+    /** @private @const {CustomerService} */
+    this.customerService_ = customerService
+
+    /** @private @const {RegionService} */
+    this.regionService_ = regionService
+
+    /** @private @const {TotalsService} */
+    this.totalsService_ = totalsService
+  }
+
+  /**
+   * Fetches an open PayPal order and maps its status to Medusa payment
+   * statuses.
+   * @param {object} paymentData - the data stored with the payment
+   * @returns {string} the status of the order
+   */
+  async getStatus(paymentData) {
+    const order = await this.retrievePayment(paymentData)
+
+    let status = "pending"
+
+    switch (order.status) {
+      case "CREATED":
+        return "pending"
+      case "COMPLETED":
+        return "authorized"
+      case "SAVED":
+      case "APPROVED":
+      case "PAYER_ACTION_REQUIRED":
+        return "requires_more"
+      case "VOIDED":
+        return "canceled"
+      // return "captured"
+      default:
+        return status
+    }
+  }
+
+  /**
+   * Not supported
+   */
+  async retrieveSavedMethods(customer) {
+    return Promise.resolve([])
+  }
+
+  /**
+   * Creates a PayPal order, with an Authorize intent. The plugin doesn't
+   * support shipping details at the moment.
+   * Reference docs: https://developer.paypal.com/docs/api/orders/v2/
+   * @param {object} cart - cart to create a payment for
+   * @returns {object} the data to be stored with the payment session.
+   */
+  async createPayment(cart) {
+    const { customer_id, region_id, email } = cart
+    const { currency_code } = await this.regionService_.retrieve(region_id)
+
+    const amount = await this.totalsService_.getTotal(cart)
+
+    const request = new PayPal.orders.OrdersCreateRequest()
+    request.requestBody({
+      intent: "AUTHORIZE",
+      application_context: {
+        shipping_preference: "NO_SHIPPING",
+      },
+      purchase_units: [
+        {
+          custom_id: cart.id,
+          amount: {
+            currency_code: currency_code.toUpperCase(),
+            value: (amount / 100).toFixed(2),
+          },
+        },
+      ],
+    })
+
+    const res = await this.paypal_.execute(request)
+
+    return { id: res.result.id }
+  }
+
+  /**
+   * Retrieves a PayPal order.
+   * @param {object} data - the data stored with the payment
+   * @returns {Promise<object>} PayPal order
+   */
+  async retrievePayment(data) {
+    try {
+      const request = new PayPal.orders.OrdersGetRequest(data.id)
+      const res = await this.paypal_.execute(request)
+      return res.result
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Gets the payment data from a payment session
+   * @param {object} session - the session to fetch payment data for.
+   * @returns {Promise<object>} the PayPal order object
+   */
+  async getPaymentData(session) {
+    try {
+      return this.retrievePayment(paymentSession.data)
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * This method does not call the PayPal authorize function, but fetches the
+   * status of the payment as it is expected to have been authorized client side.
+   * @param {object} session - payment session
+   * @param {object} context - properties relevant to current context
+   * @returns {Promise<{ status: string, data: object }>} result with data and status
+   */
+  async authorizePayment(session, context = {}) {
+    const stat = await this.getStatus(session.data)
+
+    try {
+      return { data: session.data, status: stat }
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Updates the data stored with the payment session.
+   * @param {object} data - the currently stored data.
+   * @param {object} update - the update data to store.
+   * @returns {object} the merged data of the two arguments.
+   */
+  async updatePaymentData(data, update) {
+    try {
+      return {
+        ...data,
+        ...update.data,
+      }
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Updates the PayPal order.
+   * @param {object} sessionData - payment session data.
+   * @param {object} cart - the cart to update by.
+   * @returns {object} the resulting order object.
+   */
+  async updatePayment(sessionData, cart) {
+    try {
+      const { region_id } = cart
+      const { currency_code } = await this.regionService_.retrieve(region_id)
+
+      const request = new PayPal.orders.OrdersPatchRequest(sessionData.id)
+      request.requestBody([
+        {
+          op: "replace",
+          path: "/purchase_units/@reference_id=='default'",
+          value: {
+            amount: {
+              currency_code: currency_code.toUpperCase(),
+              value: (cart.total / 100).toFixed(),
+            },
+          },
+        },
+      ])
+
+      await this.paypal_.execute(request)
+
+      return sessionData
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Not suported
+   */
+  async deletePayment(payment) {
+    return
+  }
+
+  /**
+   * Captures a previously authorized order.
+   * @param {object} payment - the payment to capture
+   * @returns {object} the PayPal order
+   */
+  async capturePayment(payment) {
+    const { purchase_units } = payment.data
+
+    const id = purchase_units[0].payments.authorizations[0].id
+
+    try {
+      const request = new PayPal.payments.AuthorizationsCaptureRequest(id)
+      await this.paypal_.execute(request)
+      return this.retrievePayment(payment.data)
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Refunds a given amount.
+   * @param {object} payment - payment to refund
+   * @param {number} amountToRefund - amount to refund
+   * @returns {string} the resulting PayPal order
+   */
+  async refundPayment(payment, amountToRefund) {
+    const { purchase_units } = payment.data
+
+    try {
+      const payments = purchase_units[0].payments
+      if (!(payments && payments.captures.length)) {
+        throw new Error("Order not yet captured")
+      }
+
+      const payId = payments.captures[0].id
+      const request = new PayPal.payments.CapturesRefundRequest(payId)
+
+      request.requestBody({
+        amount: {
+          currency_code: payment.currency_code.toUpperCase(),
+          value: (amountToRefund / 100).toFixed(),
+        },
+      })
+
+      await this.paypal_.execute(request)
+
+      return this.retrievePayment(payment.id)
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Cancels payment for Stripe payment intent.
+   * @param {object} paymentData - payment method data from cart
+   * @returns {object} canceled payment intent
+   */
+  async cancelPayment(payment) {
+    try {
+      const { purchase_units } = payment.data
+      if (payment.captured_at) {
+        const payments = purchase_units[0].payments
+
+        const payId = payments.captures[0].id
+        const request = new PayPal.payments.CapturesRefundRequest(payId)
+        await this.paypal_.execute(request)
+      } else {
+        const id = purchase_units[0].payments.authorizations[0].id
+        const request = new PayPal.payments.AuthorizationsVoidRequest(id)
+        await this.paypal_.execute(request)
+      }
+
+      return this.retrievePayment(payment.data)
+    } catch (error) {
+      throw error
+    }
+  }
+
+  /**
+   * Given a PayPal authorization object the method will find the order that
+   * created the authorization, by following the HATEOAS link to the order.
+   * @param {object} auth - the authorization object.
+   * @returns {Promise<object>} the PayPal order object
+   */
+  async retrieveOrderFromAuth(auth) {
+    const link = auth.links.find((l) => l.rel === "up")
+    const parts = link.href.split("/")
+    const orderId = parts[parts.length - 1]
+    const orderReq = new PayPal.orders.OrdersGetRequest(orderId)
+    const res = await this.paypal_.execute(orderReq)
+    if (res.result) {
+      return res.result
+    }
+    return null
+  }
+
+  /**
+   * Retrieves a PayPal authorization.
+   * @param {string} id - the id of the authorization.
+   * @returns {Promise<object>} the authorization.
+   */
+  async retrieveAuthorization(id) {
+    const authReq = new PayPal.payments.AuthorizationsGetRequest(id)
+    const res = await this.paypal_.execute(authReq)
+    if (res.result) {
+      return res.result
+    }
+    return null
+  }
+
+  /**
+   * Checks if a webhook is verified.
+   * @param {object} data - the verficiation data.
+   * @returns {Promise<object>} the response of the verification request.
+   */
+  async verifyWebhook(data) {
+    const verifyReq = {
+      verb: "POST",
+      path: "/v1/notifications/verify-webhook-signature",
+      headers: {
+        "Content-Type": "application/json",
+      },
+      body: {
+        webhook_id: this.options_.auth_webhook_id,
+        ...data,
+      },
+    }
+
+    return this.paypal_.execute(verifyReq)
+  }
+
+  /**
+   * Upserts a webhook that listens for order authorizations.
+   */
+  async ensureWebhooks() {
+    if (!this.options_.backend_url) {
+      return
+    }
+
+    const webhookReq = {
+      verb: "GET",
+      path: "/v1/notifications/webhooks",
+    }
+    const webhookRes = await this.paypal_.execute(webhookReq)
+
+    console.log(webhookRes.result.webhooks)
+    let found
+    if (webhookRes.result && webhookRes.result.webhooks) {
+      found = webhookRes.result.webhooks.find((w) => {
+        const notificationType = w.event_types.find(
+          (e) => e.name === "PAYMENT.AUTHORIZATION.CREATED"
+        )
+        return (
+          !!notificationType &&
+          w.url === `${this.options_.backend_url}/paypal/hooks`
+        )
+      })
+    }
+
+    if (!found) {
+      const whCreateReq = {
+        verb: "POST",
+        path: "/v1/notifications/webhooks",
+        headers: {
+          "Content-Type": "application/json",
+        },
+        body: {
+          id: "medusa-auth-notification",
+          url: `${this.options_.backend_url}/paypal/hooks`,
+          event_types: [
+            {
+              name: "PAYMENT.AUTHORIZATION.CREATED",
+            },
+          ],
+        },
+      }
+
+      await this.paypal_.execute(whCreateReq)
+    }
+  }
+}
+
+export default PayPalProviderService
diff --git a/packages/medusa/src/api/routes/admin/orders/__tests__/get-order.js b/packages/medusa/src/api/routes/admin/orders/__tests__/get-order.js
index 6cec0f0b2d..858def2d4b 100644
--- a/packages/medusa/src/api/routes/admin/orders/__tests__/get-order.js
+++ b/packages/medusa/src/api/routes/admin/orders/__tests__/get-order.js
@@ -21,7 +21,7 @@ const defaultRelations = [
   "claims.fulfillments",
   "claims.claim_items",
   "claims.claim_items.images",
-  "claims.claim_items.tags",
+  // "claims.claim_items.tags",
   "swaps",
   "swaps.return_order",
   "swaps.payment",
diff --git a/packages/medusa/src/services/order.js b/packages/medusa/src/services/order.js
index aeb0527a5a..19f23a1a95 100644
--- a/packages/medusa/src/services/order.js
+++ b/packages/medusa/src/services/order.js
@@ -905,11 +905,13 @@ class OrderService extends BaseService {
 
       const result = await orderRepo.save(order)
 
-      this.eventBus_
-        .withTransaction(manager)
-        .emit(OrderService.Events.PAYMENT_CAPTURED, {
-          id: result.id,
-        })
+      if (order.payment_status === "captured") {
+        this.eventBus_
+          .withTransaction(manager)
+          .emit(OrderService.Events.PAYMENT_CAPTURED, {
+            id: result.id,
+          })
+      }
 
       return result
     })