PayPal Payouts: How It Works, Fees, Benefits & Competitors

PayPal Payouts is a fast, secure way for businesses to send money to multiple people at once. Instead of sending individual payments manually, you can upload a list of recipients and send funds in bulk, which will help you save time and reduce errors. Payments can be sent to PayPal accounts in more than 200 countries, and recipients can withdraw funds to their bank or spend directly from PayPal.

So let’s take a look at PayPal payouts, how they work and how you can use them for your business.

What Are PayPal Payouts and How Do They Work?

PayPal Payouts is a bulk payment service that allows businesses to send money to multiple recipients at once.¹ Instead of processing each payment manually, you can upload a single file with recipient details or use PayPal’s API to automate the process.² This is especially useful for issuing refunds in bulk and paying freelancers, contractors or affiliates.³

Recipients get their funds instantly in their PayPal account, which they can then transfer to their bank or spend directly.¹ The process is simple: you fund your PayPal account, create a payout batch and send it.² PayPal also provides tracking so you can see which payments were claimed.³

PayPal Payouts Competitors

If you’re considering PayPal Payouts for your business, it’s smart to explore the competition. Several other platforms provide mass payment solutions with varying fees, features and global reach. Understanding the alternatives can help you find the best fit for your payout needs.

Wise Business

Wise Business is a cost-effective way for US businesses to send international transfers and get paid from abroad in multiple currencies. Conversions also take place at the mid-market exchange rate with no hidden fees. This account adds features and tools that are helpful for cutting costs on payouts, such as invoices. You can get a Wise Multi-Currency card for business, and employee expense cards. Wise Business also allows you to use BatchTransferto pay your customers, freelancers, employees and contractors abroad. The Wise Business account is also easy to connect with popular accounting software, including Xero, QuickBooks, FreeAgent, and more.

Tipalti

Tipalti is a global payouts platform designed for businesses managing high volumes of international transactions. It supports multiple payment methods, including ACH, wire transfers, PayPal and prepaid debit cards, across over 190 countries. One of the most popular features is built-in tax compliance, helping companies handle W-9 and W-8BEN forms effortlessly. Tipalti also offers payment reconciliation, currency conversion and fraud detection tools, so it’s an integrated solution for scaling payouts securely.

Payoneer

Payoneer is a well-known competitor to PayPal Payouts, particularly popular for global freelance payments and cross-border transactions. It enables users to send and receive funds in more than 150 currencies, with local bank transfers available in more than 70 countries. Businesses appreciate Payoneer’s multi-currency account feature, which allows them to hold, manage and convert balances without hidden fees. It’s widely used by marketplaces, e-commerce platforms and service providers due to its ease of integration and compliance with international regulations. Payoneer also provides prepaid Mastercards for quick access to funds.

Trolley (Formerly Payment Rails)

Trolley specializes in mass payouts for the gig economy, creator economy, and global service providers. It supports payments to more than 215 countries and territories in more than 135 currencies via bank transfers, PayPal and other methods. Trolley’s platform has compliance features, such as automatic tax form collection and reporting, as well as KYC (Know Your Customer) verification. Additional features include customizable API, enabling payout integrations directly into a businesses’ platforms. Trolley also offers payment tracking and recipient self-onboarding to streamline the process.

Understanding PayPal Payouts Fees

When using PayPal Payouts, it’s important to understand how the fees work so you can budget accurately and avoid surprises. PayPal charges a small fee per recipient, which can vary depending on the country and currency involved.¹ For domestic payouts in the U.S., the fee is typically a fixed amount per payment, while international payouts include a small percentage-based fee plus currency conversion costs.²

These fees are automatically deducted from your PayPal balance at the time of sending. The exact cost can also depend on whether your recipient has a PayPal account and which payment method they use.³

While PayPal Payouts might not always be the cheapest option compared to some competitors, the convenience, speed, and global reach often outweigh the slightly higher fees.¹ By reviewing PayPal’s current fee schedule before initiating payments, you can make sure your mass payout process remains cost-effective and transparent.²

Wise Business Could Help Your Company Save on Global Payments

How Shopify Merchants Can Use PayPal Payouts

Shopify merchants can use PayPal Payouts to help with payments to affiliates, suppliers and service providers directly from their PayPal account.¹ Instead of sending individual transfers, merchants can upload a batch file with recipient details or integrate PayPal’s API to automate the payout process.² This is particularly useful for stores running influencer programs, drop-shipping arrangements or managing a team of remote contractors.³ Recipients receive funds in their PayPal accounts, which they can then withdraw or use for purchases.¹

Since PayPal supports multiple currencies and more than 200 markets, Shopify merchants can pay partners around the world without juggling multiple banking systems.²

The process is simple: fund your PayPal account, create your payout batch and track delivery in real time.³ The integration enables reliable payments to partners and can be an efficient way to sell, allowing Shopify sellers to focus on growing their business while making sure that partners are paid quickly and securely.

Can You Use PayPal for eBay Payouts?

In the past, PayPal was the primary method for sellers to receive payouts from eBay, but that’s no longer the case.¹ eBay has shifted to its own managed payments system, meaning seller earnings are now sent directly to a bank account rather than a PayPal balance.²

While you can still use PayPal to make purchases on eBay or receive buyer payments if you run a standalone store outside eBay, PayPal Payouts is not supported for eBay’s managed payments.³ The change was made to simplify eBay’s payment process and reduce fees for sellers.

However, if you prefer using PayPal to manage your business income, you can always transfer the funds from your bank account to PayPal after receiving your eBay payout.¹ So with that being said, it’s no longer a direct integration; PayPal can still play a role in your broader payment and cash flow strategy.²

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Use Wise Business >>

Final Thoughts

PayPal Payouts is a powerful tool for businesses that need to send money to multiple recipients quickly, securely, and internationally. It helps speed up the process by offering mass payments with tracking and compliance support.³

Although it’s not the cheapest option, fees can add up depending on currency and payment method, and it provides the convenience, brand trust, and global reach that many businesses value. For platforms such as Shopify, PayPal can integrate smoothly, though certain marketplaces like eBay no longer use PayPal for direct payouts.

So ultimately, the choice comes down to weighing fees against ease of use and worldwide accessibility. If you’re looking to upgrade your business’ payment strategy, PayPal Payouts could be a worthwhile addition.

Frequently Asked Questions (FAQs)

Are PayPal Payouts available in every country?

No, PayPal Payouts isn’t available worldwide. Its availability depends on PayPal’s supported country list and local financial regulations. Some regions allow both sending and receiving payouts, while others may restrict one side of the transaction. You should always check PayPal’s official country availability page before setting up payouts to make sure your target recipients can access the service.

How fast are PayPal Payouts processed?

PayPal Payouts are generally processed within minutes for recipients with a PayPal account in good standing.¹ However, several factors can affect speed, including the recipient’s country, currency, and whether the payout is subject to additional compliance checks.¹ In some cases, especially for new accounts or high-value payments, it can take up to 24 hours or more.

Businesses should account for potential delays when scheduling payments to make sure recipients are paid on time. Compared to traditional bank transfers, PayPal Payouts are often faster, but exact timing may vary depending on internal reviews or network processing times.³

Can I automate PayPal Payouts?

Yes, PayPal Payouts supports automation through its API, which allows businesses to schedule and send multiple payments at once.³ This is particularly useful for platforms that pay freelancers, sellers or affiliates regularly.³

With automation, payments can be triggered based on specific events, like a completed sale or a project milestone, reducing manual work and minimizing errors.² Developers can integrate the Payouts API directly into business systems, while non-technical users can leverage third-party platforms that connect with PayPal.^2,3

Are there limits on PayPal Payout transactions?

Yes, PayPal imposes both per-transaction and daily limits on Payouts, which vary by account type, country and verification status.² For most verified business accounts, the maximum per-transaction limit can be quite high, but it’s important to confirm your specific thresholds within your PayPal dashboard.¹ Large businesses sending bulk payments should confirm their limits are sufficient or request higher ones through PayPal’s support team.² Exceeding limits can result in payments being split or delayed.³

What currencies does PayPal Payouts support?

PayPal Payouts supports multiple currencies, so it’s an excellent tool for global businesses.³ However, the specific currencies available depend on both the sender’s country and the recipient’s PayPal account.¹ If the payout is sent in a currency different from the recipient’s default, PayPal automatically applies a currency conversion, which includes a fee.³ Businesses working with international recipients should consider currency exchange costs when budgeting.³

Sources:

1. PayPal Mass Payments
2. PayPal Payouts Developer Docs
3. Tipalti – PayPal Mass Payments Guide