Business Bank accounts

Guide on PayPal business account in New Zealand

Karthik Rajakumar

30.03.26

Read time 6 minutes

For most New Zealand businesses, accepting online payments is essential for selling products or services, both locally and internationally. PayPal is one of the most widely used options for this, processing around 20 billion global payment transactions a year¹, so it’s often what customers expect to see at a checkout.

In this guide, we’ll explain what a PayPal Business account is and how to open one in New Zealand, plus detail the features on offer and fees involved.

Table of Contents
What is a PayPal Business Account? Features and services Benefits Opening a PayPal Business Account in NZ Pricing structure and fees Types of fees involved Wise Business: Simplify international business payments FAQs

What is a PayPal Business Account?

A PayPal Business Account is a service account built for getting paid professionally. If you run an online store or dropshipping business, for example, it gives you the tools to accept and send payments, and integrate PayPal directly into your website or ecommerce platform.

There are also features designed specifically for business tasks — things like creating invoices, accepting payments under a company name, and managing refunds and disputes. PayPal says its overall package is designed to ‘help run and grow’ your business².

In New Zealand, businesses that might benefit from a PayPal Business Account include:

Ecommerce stores selling products online
Freelancers and service providers invoicing clients
SaaS or digital product businesses
Marketplace sellers
Businesses with international clients and customers

It’s free to open a Business Account, but PayPal uses a ‘pay-as-you-go’ model with transaction fees when receiving payments³. More on that later.

PayPal Business Account - Features and services

PayPal groups its main Business Account features within four categories in New Zealand: Accept Payments, Make Payments, Manage Risk, and Streamline operations². Here’s a breakdown of what’s on offer in each of these.

Accept payments globally

One of the big advantages of PayPal is its popularity and global reach — there are more than 400+ million active accounts⁴. This is a huge audience ready and waiting to pay businesses. And even if a customer doesn’t have an account, you can enable ‘Guest Checkout’, which lets them complete a purchase securely with a debit or credit card⁵.

With PayPal, you can accept payments in 200+ markets in 135 currencies through a single account¹.

Make payments

Accepting payments is the headline offering, but a PayPal Business Account can also be used to send payments to suppliers, freelancers, vendors, and other businesses. Payments can be made directly from a PayPal balance or with a linked bank account, debit card, or credit card, which provides some flexibility in managing day-to-day cash flow.

Key payment features include⁶:

Global payouts to recipients in 180 markets and 24 currencies
Check out with PayPal to quickly pay for any business expenses
Track these expenses and other business activities with reports in the PayPal dashboard

Send and track invoices

PayPal has a feature-rich service for creating and sending invoices from the account dashboard. Since its inception, PayPal says 775+ million invoices have been sent, with 79% being paid within one day⁷. With PayPal invoicing, businesses can⁷:

Generate invoices quickly using a simple interface and smart automation
Customise invoices with company names and logos, and tailor fields
Send invoices via email, SMS, messaging apps, and social media platforms.
Track invoices to see if they have been paid or are still outstanding, and follow up with reminders

Integrate online checkouts

For businesses with an e-commerce store or website, PayPal gives you the tools to create and integrate a checkout process that converts customers. There are two options: PayPal Checkout, a simple plug and pay option with limited customisation, and Expanded Checkout, which offers more payment options and greater flexibility⁸.

Key features include:

Multiple payment options, including PayPal, debit and credit cards, and digital wallets such as Apple Pay and Google Pay
Integration with major e-commerce platforms like Shopify and WooCommerce
Flexible integration methods, including no-code payment links and buttons, and developer APIs

Access seller protection and security

PayPal includes built-in security tools within checkouts and elsewhere designed to protect businesses and their customers across the 10+ million payments made on the platform every day⁸. This is part of its ‘manage risk’ service. It includes⁸:

Fraud monitoring with advanced machine learning to detect suspicious activity and combat threats
PayPal Seller Protection to safeguard eligible transactions against certain types of disputes or chargebacks (available at no extra cost).

Use account management tools

PayPal also has a suite of account management tools designed to ‘simplify operations’ and smooth daily tasks. Most of these features are easy to access from the main dashboard and help to manage finances, monitor activity, and handle routine admin.

Key tools include¹⁰:

Reporting and analytics to track sales activity across different payment methods and channels
Team access controls to give your employees their own logins with customised permissions and privileges
PayPal Resolution Centre for sorting any disputes between merchants and buyers
Balance withdrawals to transfer funds from your PayPal balance to a linked bank account

Benefits of a PayPal Business account

PayPal has become a familiar way to accept payments online for many businesses. Here are some of the key benefits a PayPal Business account can offer.

Global reach - PayPal is used in 200+ markets worldwide, making it easier for businesses to accept payments from overseas and expand beyond NZ.
Ease of use - Customers can complete purchases quickly using their PayPal account or card, often without having to re-enter details, which can reduce cart abandonment rates.
Flexible payment options - Businesses can accept lots of different payment methods, including debit and credit cards, and digital wallets.
Integrations - PayPal connects with many popular ecommerce tools and can fit seamlessly into existing workflows.
Centralised management - Payments, invoices, reporting, disputes, and team permissions can all be handled within a single account, keeping financial activity organised and easy to access.

How to open a PayPal Business Account in New Zealand

It’s relatively straightforward to open a PayPal Business Account. All you need is an email address and some basic details about your business to get started. Here’s a quick step-by-step guide for the process.

Visit the PayPal website and click on Sign Up on the Getting Started page. You’ll then be prompted to complete a form and enter a few details¹¹.
1. Full name
2. Country where your business is based
3. Phone number with +64 NZ code
4. Email address
5. Password
After creating an account, you’ll need to verify your email address and confirm your business name to access key features³.
Link your bank account to PayPal to transfer funds and make withdrawals³.
Start using your PayPal business account to make and receive payments.

PayPal Business Account pricing structure and fees

PayPal doesn’t offer subscription plans, and there are no account setup or ongoing maintenance charges. Instead, businesses typically pay transaction-based fees depending on how they use the account, such as receiving payments, processing international transactions, or converting currencies.

Here’s an overview of the business transaction fees in New Zealand¹²:

Service/fee type	Cost
Domestic commercial transaction	3.40% + $0.45 NZD per transaction
International commercial transaction	3.40%—5.40% + $0.45 NZD per transaction (fixed fee varies by currency)
Currency conversion	Around 3—4.5% above the base exchange rate
PayPal Payouts	2% per transaction (capped depending on currency)
Dispute fee	$13 NZD—$26 NZD
Chargeback fee	$15 NZD—$28 NZD
Micropayments	About 5—6.5% + small fixed fee

The exact costs vary depending on transaction volume and the currency used.

Types of fees involved with a PayPal business account

Here’s what each of the main PayPal business account fees mean¹³.

Payment processing fees - charged when you receive payments. There is a standard percentage rate of 3.40% for domestic transactions and between 3.40% to 5.40% for international transactions, plus a small fixed fee.
Currency conversion fees - applied when payments are converted into a different currency. PayPal adds around a 3 to 4.5% markup above the base exchange rate.
PayPal Payouts fees - this is essentially PayPal’s batch payment feature. When you use Payouts to send payments to multiple recipients, there’s a percentage-based fee for each transaction with a per-currency cap. For NZD, the domestic fee cap is $20, and the international cap is $120.
Dispute and chargeback fees - if a customer disputes a payment, PayPal may charge a dispute fee. There’s also a separate fee for card chargebacks.
Micropayment fees - if you’re processing very small transaction amounts regularly, you can apply for a higher percentage fee with a lower fixed charge. PayPal says this is subject to ‘pre-approval’.

Wise Business: Simplify international business payments

Wise Business helps solve the challenge of hidden exchange rate markups by offering cross-currency transactions at the mid-market rate.

Businesses also get access to local account details 8+ currencies, like NZD, USD, AUD, & more, to receive payments from overseas customers or platforms.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
Debit cards for you and your team, which you can use in 150+ countries
Multi-user access for team members, with ways to control and manage permissions
Pay up to 1,000 recipients at once with the Wise batch payments feature
Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
Get account details to receive in 8+ currencies for a one-time fee of 40 NZD

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

PayPal Business Account FAQs

1. Is the PayPal Business Account free to set up?
Yes, it’s free to sign up and create a PayPal Business Account. All you need is an email address and some basic business details to get started. However, transaction fees will apply when you begin receiving payments or using certain services.

2. What are the main differences between a personal PayPal account and a business PayPal account?
The main difference is that a PayPal Personal Account is primarily for shopping online and sending and receiving personal payments, while a PayPal Business account is built for companies with features like invoicing, checkout integrations, employee access, and the ability to receive payments under a business name¹³.

3. Can a PayPal business account be used as a primary business bank account for my New Zealand operations?
A PayPal Business account can help businesses accept and manage payments. However, it’s not a full replacement for a traditional bank account. PayPal says you must link a bank account to ‘start getting paid’, so you’ll need a primary bank account to withdraw funds and manage finances³.

Sources:

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.