PayPal Recurring Payments: Setup, Fees and Alternatives

PayPal recurring payments can help a business collect repeat payments for memberships, software, retainers and other subscription services. The practical questions are whether the setup suits your checkout, what charges may apply, and how customers can manage an existing agreement.

In this guide, we've explained how PayPal recurring payments work, how to set up a subscription plan, the UK fee items to check and when another payment setup may be more suitable.

We've also explained how Wise Business can help after an international payment has been received - for example, when you need to hold, convert or send business money across borders. Wise Business is not a replacement for a recurring card-billing gateway.

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⚠️ Note: PayPal features, fees, currency conversion and eligibility can vary by payment type, customer location, account setup and the product used. Check PayPal's current website and terms before choosing a setup or setting customer prices.

Wise Business offers a free Essential plan for basic spending and transferring. If you need to receive money, set up direct debits, or generate invoices, you'll pay a one-time £50 setup fee to unlock the Advanced features.

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Summary: PayPal recurring payments

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What are PayPal recurring payments?

Recurring payments charge a customer at an agreed interval after they have authorised the arrangement. PayPal describes its recurring-payment product as a way to offer subscriptions, with options to choose a pricing model, set a billing cycle and add a one-time setup fee.¹

For a business, that can suit subscription software, membership access, service plans, retainers or repeat product orders. It does not remove the need to make the price, renewal terms, cancellation process and customer communications clear before a customer signs up.

Can PayPal do recurring payments?

Yes. PayPal states that subscription payments are built into PayPal Checkout and Expanded Checkout. In its subscription guidance, PayPal says a business should start with a PayPal Business account, then use the Manage Subscriptions area to create and activate a plan.^1,4

PayPal Checkout and Expanded Checkout are not identical. PayPal says Expanded Checkout gives a business more control, while the business also handles refunds, chargebacks for unauthorised transactions and compliance reporting.⁵ Choose the option that fits your technical resources and checkout responsibilities, rather than assuming every subscription use case needs the same integration.

PayPal recurring payments: benefits and limitations

Benefits

• Subscription payments are already built into PayPal Checkout and Expanded Checkout.¹
• A business can set a pricing model, billing cycle and one-time setup fee for a plan.¹
• PayPal says customers can manage plans and payment methods in Automatic Payments settings, and that it can retry failed payment transactions.¹
• PayPal's setup guide supports fixed-price and quantity-pricing plans, as well as optional trial periods and a defined number of billing cycles.⁴

Limitations

• Commercial, international and currency-conversion costs can affect the amount a business receives, so the relevant fee schedule needs checking before prices are set.²
• A business using Expanded Checkout may take on more responsibility for refunds, chargebacks for unauthorised transactions and compliance reporting.⁵
• More complex billing rules can require a more technical implementation, so assess whether the subscription tools you choose match your planned pricing model and website setup.

PayPal recurring payments fees in the UK

PayPal's merchant-fee page was last updated on 9 February 2026. It distinguishes between domestic and international transactions, and the applicable charge depends on the type of transaction, the market and the currency received.²

The table is a starting point, not a quote. Review the current merchant-fee page and any terms that apply to your PayPal product before publishing prices, particularly if you accept payments from overseas customers.

How to set up PayPal recurring payments

PayPal's current guide sets out the process below for creating a subscription plan and accepting recurring payments through a website.⁴

Step 1: Sign in to a PayPal Business account

Open or sign in to a PayPal Business account, then go to the Manage Subscriptions area. PayPal says this is where you can create a new subscription plan.⁴

Step 2: Create the product record

Select Create Plan and add the product or service information. PayPal's guide includes the product name, description, product ID, product type and category among the details to provide.⁴

Step 3: Choose the plan and price

PayPal describes fixed pricing and quantity pricing as plan options. Add the plan name and description, choose the currency, enter the price, and decide whether a one-time setup fee, tax setting or trial period is appropriate.⁴

Step 4: Set the billing cycle

Choose a cycle such as daily, weekly, monthly or yearly. PayPal says you can set how long the plan runs, including a specified number of billing cycles or an ongoing plan, and set how many missed cycles are allowed before it stops collecting payment.⁴

Step 5: Review, activate and add the payment option

Review the subscription details, save the plan and turn it on. PayPal's guide then explains how to add a payment button or use the relevant subscription option on your website.⁴

How to cancel a PayPal recurring payment

Customers can manage a PayPal automatic payment by going to Settings, choosing Payments, then opening Subscriptions and saved businesses or Automatic Payments. They can select the merchant and cancel the automatic payment from that page.³

For businesses, cancellation and refund processes should match the subscription terms and any customer communications. If the payment is part of a broader service contract, consider the contract terms before cancelling access or attempting a refund.

PayPal recurring payment alternatives

The right alternative depends on how you collect payments and how much billing flexibility you need.

If you are comparing card-based recurring payments with bank-based collections, read our guide to recurring card payments vs Direct Debit. For a broader cost check, read our payment processing fees guide for the UK.

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💡 With Wise Business, a business that receives international subscription revenue can hold money in 40+ currencies, then convert it at the mid-market exchange rate with low, transparent fees before paying suppliers or contractors.

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Use Wise Business alongside PayPal for international payment admin

PayPal can help a business collect subscription payments. Wise Business can help with the next stage when that business needs to manage money across currencies, pay suppliers or contractors, or organise international business payments.

Wise Business is not a direct replacement for PayPal Subscriptions or an automated recurring card-billing tool. It can be used alongside PayPal when the broader payment workflow includes holding, converting or sending money internationally.

Wise Business offers a free Essential plan for basic spending and transferring. If you need to receive money, set up direct debits, or generate invoices, you'll pay a one-time £50 setup fee to unlock the Advanced features.
With Wise Business, you can:

• 🌍 Send money to 70+ countries and pay overseas invoices at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation. See full cashback terms and conditions
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn variable returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Rates vary by country and currency. Rates are variable. Visit Wise Interest to find out more)
• 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for your domestic and global needs.

Be Smart, Get Wise.

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In the UK, Interest and Stocks are provided by Wise Assets, the trading name of Wise Assets UK Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA number 839689).

We do not provide investment advice, and taxes may apply. If unsure, seek qualified financial advice. Full fund information is available on our website.

Sources:

1. Recurring Payments | Offer Subscriptions | PayPal UK
2. PayPal Merchant Fees - Seller Fees | PayPal UK
3. What is an automatic payment and how do I update or cancel one? | PayPal UK
4. Set Up a Subscription Plan & Accept Payments | PayPal UK
5. PayPal Checkout | Online Checkout Solutions | PayPal UK
6. Sell subscriptions online | Shopify UK

Sources checked on 14 July 2026