Despite newer competitors, PayPal still processes over $1.5 trillion in payments annually and remains the preferred payment method for a significant share of B2B and B2C buyers. For businesses with clients who specifically request PayPal — or who operate in markets where PayPal has strong consumer trust — adding it as a payment option on invoices directly improves collection rates.
How PayPal invoice payments work
When PayPal is connected as a payment provider in TallyArc, your client payment portal includes a PayPal button alongside any other payment methods you've enabled. Clicking it opens a PayPal checkout flow where clients can pay using:
- Their PayPal balance
- A linked bank account (no card fee)
- A credit or debit card (processed by PayPal)
- PayPal Pay Later / Pay in 4 (where available)
Once payment is confirmed by PayPal, TallyArc marks the invoice as paid and the transaction appears in your payment history.
PayPal fees for invoice payments
PayPal's standard transaction fee for business accounts is 3.49% + 49¢ for PayPal Checkout transactions, or 2.99% + 49¢ for card payments processed through PayPal. These rates are higher than Stripe's standard rates — factor this in when deciding which provider to make your default.
For high-volume businesses, PayPal offers volume pricing tiers. If you process more than $3,000/month through PayPal, contact them about negotiated rates.
Connecting PayPal to TallyArc
- Log into the PayPal Developer Dashboard and create a REST API app
- Copy your Client ID and Client Secret (use Live credentials for production)
- In TallyArc, go to Settings → Payment Providers → PayPal
- Enter your Client ID and Secret, set Mode to live, and save
- PayPal will now appear as a payment option on all new invoices
When PayPal makes sense as your primary provider
PayPal is particularly well-suited for:
- International B2C invoicing — strong consumer trust in Europe, Latin America, and Southeast Asia
- Clients who don't have or prefer not to use a card — PayPal balance payments are common for freelance and creative services clients
- Offering Pay Later options — PayPal's financing products can help larger invoice amounts get paid when a client's cash flow is tight
Running PayPal alongside Stripe
TallyArc supports multiple active payment providers simultaneously. Many businesses run both Stripe and PayPal — Stripe as the default card processor and PayPal as an alternative for clients who prefer it. Clients see both options on the payment portal and choose their preferred method. Both reconcile back to the same invoice automatically.