New to MV, question on PayPal Payments

Hi all,

This is my first post, so please forgive any newbie mistakes. I am working on a MultiVendor site and have a question on PayPal payments.

Most of my users will be people who do not have a PayPal business/commerce account. They will be people selling items of their own in an eBay or Etsy style setup.

From what I can tell, I don’t have an option to handle automatic payments to them using PayPal unless they have a PayPal Business account. Just using the regular PayPal payments, I’ll receive the money for the sale, and then I need to transfer it from our PayPal to theirs.

Is this correct?


You have to decide who should receive the money for sales primarily. If it should be your vendors, then you need a PayPal Marketplace account and your merchants need a PayPal Business account.

If you don’t have a PayPal Business account, you can guide them through OnBoarding and create it together with them. That’s what we do on our marketplace.

If you want to get the money, then - as I understand it - a PayPal account from you is enough. You can then divide it up to your vendors. But be careful: In Europe (and maybe also in your country) this is not allowed. You need a banking license for that. Which you probably won’t get and is very expensive.


Thank you! I don’t believe we require such a permit here in the states, but we have all kinds of ridiculous nonsense of our own to deal with here… such as the marketplace facilitator laws that are beyond complex, and the calculating of taxes. It’s ridiculous.