Can You Get Paid on eBay With PayPal?

Panna Kemenes

Back in 2002, eBay purchased PayPal, but the two companies eventually separated in 2015 as PayPal grew beyond the auction site and became one of the top payment processing companies in the world.

In 2018, eBay began updating their payments system to enhance both the buying and selling experience for their users. This means if you sell on eBay, you won’t be able to receive payouts via PayPal anymore. Instead, payments will go directly to a bank account.

Buyers will still be able to use PayPal to complete purchases on eBay—unlike Amazon—and will now have multiple options to make payments such as Google Pay, Apple Pay, PayPal credit, gift cards, and debit and credit cards.

The idea around the updates is that it allows buyers multiple payment options without having to set up a PayPal account. And sellers won’t have to go through PayPal to get their payouts.

Due to the updates, their fee structure will also change.

So, the short answer is no, it’s not possible to get paid by PayPal on eBay anymore, but in the details below, we’ve summarized all the necessary information you need to know about this topic.

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Can you still use PayPal on eBay?

eBay has completely changed the way sellers are paid on the platform. Now, as a seller, you won’t be able to use PayPal as a means of processing and holding earnings—even if you do dropshipping. Instead, you’ll need to link a bank account to your eBay account in order to receive payments.

On the other side, buyers will have free rein to use PayPal and PayPal credit on the platform, along with a variety of other payment methods.

Can your payouts be directed to your PayPal account?

If you’re a seller on eBay, you can no longer direct your payouts to PayPal. Instead, you’ll need to link a bank account to your seller account to receive payouts.

eBay set a deadline of 2021 for the transition that they communicated to sellers. If you don’t want to see a disruption in your ability to manage your listings, you’ll need to update your account information and link it to a bank account for payouts.

But as a customer, you can still use PayPal on eBay. Buyers can pay with PayPal, credit and debit cards, gift cards, Apple Pay, Google Pay, and PayPal Credit.

How do I connect my PayPal to my eBay?

Only buyers have the ability to connect PayPal accounts to eBay., but it’s an easy process if you follow these steps¹:

  1. Log in to your eBay buyer account.
  2. Click ‘Accounts’ in My eBay.
  3. Select the section labeled ‘PayPal account’.
  4. Click ‘Link my PayPal account’.
  5. Log in to PayPal and complete the process.
💡 Keep in mind, this process is for buyers only. Sellers can no longer connect their PayPal accounts.

Do you need a bank account to receive payouts on eBay?

Yes, eBay earnings will no longer go to PayPal accounts. So if you’re a seller, you’ll need a bank account to receive your payments.

The setup is a two-step process. First, you’ll need to verify your existing personal information in your eBay seller account. Then, you’ll link a bank account where payouts will initiate within 2 business days—Monday through Friday, excluding bank holidays—after eBay confirms the buyer's payment.²

How to sell on eBay without PayPal?

Some sellers may not be too keen on linking their personal or business bank accounts to eBay.

If you find yourself in this situation, linking a Wise Business account to your eBay account can be a great alternative to bank accounts. Why?

  • Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks.
  • Wise is trusted by 9M customers around the world, including businesses like GoCardless, Bolt, Xero, and Emburse to save time and money – it’s regulated by financial authorities around the world.
  • Wise offers a business debit card for sole proprietors and single member LLCs with transparent fees and currency conversion at the mid-market rate for any currency
  • You can have bank details for different countries
  • Hold balances for 40+ currencies in 1 account
  • Wise Business accounts offer low cost, transparent currency conversion from 0.3% using the mid-market rate with no hidden fees.

Open a Wise Business account today

Learn More:

How to Connect Your Payoneer and eBay Accounts: 6 Simple Steps

  1. PayPal - Paying with PayPal
  2. PayPal - Getting Paid Has Changed

All sources checked on 9 July 2021

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