Both questions have the same root. PayPal works on Etsy, but not the way it works on most online stores. Etsy runs PayPal through its own checkout, called Etsy Payments, so the buyer pays Etsy and Etsy pays the seller. That one detail decides whether PayPal shows at checkout, who settles a dispute, how much protection a custom order gets and where a seller’s money lands.
Yes, Etsy takes PayPal in most countries, including the US, UK, Canada and Australia. Buyers pick PayPal at checkout and confirm in a PayPal window. The payment runs through Etsy Payments, so sellers receive the money in their Etsy Payment account, not in PayPal, and pay no separate PayPal fee. PayPal isn’t offered in Türkiye or by sellers in Israel.
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Does Etsy Accept PayPal in Every Country?
Etsy accepts PayPal in most countries where PayPal operates, as long as the shop uses Etsy Payments. It isn’t available to buyers or shops in Türkiye, where PayPal doesn’t operate, and sellers in Israel can’t accept it. Some newer shops in other countries also show PayPal greyed out, so check the payment options on the listing.
Where you live decides two things. As a buyer, it decides whether PayPal appears at checkout. As a seller, it decides how Etsy pays you and what you pay to process each order. The table covers the main markets.
| Country | Can buyers pay with PayPal? | How sellers get paid | Seller processing fee |
|---|---|---|---|
| United States | Yes | Etsy Payments to a US bank account | 3% + $0.25 |
| United Kingdom | Yes | Etsy Payments to a UK bank account | 4% + £0.20 |
| Canada | Yes | Etsy Payments to a Canadian bank account | 3% + CA$0.25 on domestic and US orders |
| Australia | Yes | Etsy Payments to an Australian bank account | 3% + A$0.25 on domestic orders |
| Europe | Yes in most countries, with some newer shops excluded | Etsy Payments to a local bank account | Varies by country |
| Pakistan | No, PayPal doesn’t open accounts for residents, so pay by card | Etsy Payments through a Payoneer account | Etsy fee plus Payoneer fees |
| India | Usually by card | Etsy Payments, where the shop is eligible | 5% + ₹25 |
| United Arab Emirates | Yes | Etsy Payments through a Payoneer account | 6.5% + $0.30 |
| Türkiye | No | Etsy Payments without PayPal | Varies |
| Israel | Not in Israeli shops | Etsy Payments without PayPal | Varies |
Where PayPal Doesn’t Show Up
Etsy removes PayPal from shops in Türkiye and Israel once they sign up for Etsy Payments. Buyers can still order from those shops with a card, Apple Pay, Google Pay or an Etsy gift card. Etsy explains each option on its page about which payment methods you can use at checkout.
The third group is harder to spot. Sellers in Spain and Germany have reported on Etsy’s community forums that their new shops show PayPal greyed out. Etsy support has told some of them the block sits on PayPal’s side. Buyers in those shops see every method except PayPal. Nothing the buyer changes will bring it back.
How to Pay With PayPal on Etsy
To pay with PayPal on Etsy, choose PayPal in your basket, sign in to PayPal, confirm the payment and return to Etsy to place the order. Your money isn’t sent until you click Place your order on Etsy. The steps are the same in the Etsy app and on a desktop browser, as long as the shop offers PayPal.
- Open your basket and select PayPal under How you’ll pay.
- Click Pay with PayPal. A PayPal window opens.
- Sign in and pick the funding source, such as your PayPal balance, bank account or card.
- Confirm in PayPal. You’re sent back to Etsy.
- Check the order summary and click Place your order.
These steps match Etsy’s help page on how to pay with PayPal. If PayPal shows an error, Etsy sends you to PayPal support, because PayPal processes that part of the payment.
Pay by Card Through PayPal Without an Account
You don’t need a PayPal account to use the PayPal button. Select Check out with PayPal, then choose Pay with Debit or Credit Card instead of logging in. Enter your card and billing details and an email for the receipt, then return to Etsy to submit the order.
PayPal limits how often one person can use guest checkout. If the card option disappears after a few orders, PayPal wants you to open an account. You can also skip PayPal and enter the same card directly in Etsy’s card field.
Can You Split an Order Between PayPal and a Gift Card?
Only with an Etsy gift card or Etsy credit. Etsy applies the gift card balance first and lets you pay the rest with another method, including PayPal. Any other mix is blocked, so you can’t split one order between PayPal and a prepaid Visa gift card. A prepaid card must cover the whole order on its own.
Why Can’t I Pay With PayPal on Etsy?
If PayPal is missing or fails at Etsy checkout, one of four things is usually behind it. The shop doesn’t offer PayPal, your region settings don’t match where you are, PayPal declined the payment, or the seller’s PayPal option is switched off on Etsy’s side. Each one has a quick check.
The Shop Doesn’t Offer PayPal
Shops in Türkiye and Israel, plus some newer shops in Europe, can’t accept PayPal. Open another shop’s listing. If PayPal shows there, the first shop is the cause, and you’ll need a card, Apple Pay, Google Pay or Klarna to buy from it.
Your Region Settings Don’t Match
Etsy shows payment options based on your region, language and currency settings. A buyer in Chicago with the region set to another country can see a different list. Scroll to the bottom of any Etsy page, open the region settings and set your real country and currency, then reload the basket.
PayPal Declined the Payment
If PayPal opens but the payment fails, the problem sits in PayPal, not Etsy. Common causes are an expired card on your PayPal account, a limited account or the guest checkout limit. Log in to PayPal directly, fix the funding source and try again. If Etsy emails you that the order is still processing, it’s a routine fraud review and you’ll get a confirmation when it clears.
PayPal Is Greyed Out in My Shop
Sellers can’t switch PayPal on themselves. It comes with Etsy Payments where Etsy and PayPal both allow it. If it’s greyed out in your payment settings, contact Etsy support from Shop Manager and ask whether PayPal is available for your shop’s country. Your buyers can still pay with every other method meanwhile.
Is It Safe to Pay With PayPal on Etsy?
Yes. PayPal payments on Etsy run through Etsy Payments, so Etsy’s Purchase Protection covers eligible orders and Etsy, not the seller, handles disputes. You also keep PayPal’s own Buyer Protection. For custom-made items, though, Etsy’s case system is the stronger route, because PayPal excludes them from “not as described” claims.
| What matters | Etsy Purchase Protection | PayPal Buyer Protection |
|---|---|---|
| Who decides | An Etsy case agent | PayPal |
| How to start | Message the seller through Help with order, then open a case | Open a dispute in PayPal’s Resolution Center, then escalate to a claim |
| Time limit | Up to 30 days after the order becomes eligible | 180 days from the payment |
| Item doesn’t match the listing | Covered, including custom orders | Not covered for wholly or partly custom-made items |
| Late or lost item | Covered, late means 7 or more days after the estimated delivery date | Covered as an Item Not Received claim |
Why Custom and Handmade Orders Change the Answer
Most advice treats PayPal as the safest way to pay online. On Etsy, that’s only half true. PayPal’s Buyer Protection terms list “Significantly Not as Described” claims for wholly or partly custom-made items as ineligible. A personalized necklace, a name sign or a made-to-order dress all count.
So if a custom sign arrives with the wrong wedding date, a PayPal claim is the weak option. Message the seller from Help with order first, then open an Etsy case once it becomes eligible. Etsy compares the item with the listing and your messages, and it covers custom work that doesn’t match. Keep PayPal for orders that never arrive, or for anything past Etsy’s window. Etsy itself points buyers to a PayPal dispute within 180 days of purchase when it can no longer help. Our breakdown of how PayPal Buyer Protection compares with card chargebacks covers the other routes.
Never Pay a Seller Outside Etsy
Every protection above disappears once money leaves Etsy. Some sellers ask buyers to send PayPal “as friends and family” to save fees. That gives up your protection, because PayPal doesn’t cover Friends and Family payments. Pay inside Etsy checkout or walk away.
Sellers face the mirror image. A “buyer” messages that PayPal won’t work and asks for your PayPal email, then sends a fake PayPal email claiming the payment is on hold. Real Etsy orders appear in Shop Manager, never in an email or a link a buyer sends. Report the message and don’t click anything.
Can You Use PayPal Pay Later on Etsy?
Etsy’s official installment option is Klarna, not PayPal Pay Later. Etsy lists Klarna installments for buyers in the US, UK, Canada, Australia, France, Italy and Spain. PayPal’s Pay in 4 only appears inside the PayPal window when PayPal approves your account and basket, so don’t plan an Etsy purchase around seeing it.
If you want to spread the cost of a bigger Etsy order, Klarna is the option Etsy supports and shows on eligible listings. The order total must fall inside Klarna’s range for your country, and your region, language and currency settings must match your billing address.
Klarna vs PayPal Pay Later for Etsy Orders
| What matters | Klarna on Etsy | PayPal Pay in 4 |
|---|---|---|
| Listed by Etsy | Yes | No |
| Where it’s offered | Installments in the US, UK, Canada, Australia, France, Italy and Spain. Pay in 30 days in Germany, the Netherlands, Austria, Switzerland and the Nordics | Inside PayPal checkout, where PayPal approves the purchase |
| How it works | You repay Klarna directly under Klarna’s terms | Four payments, the first at purchase, then every two weeks |
| Where to see it | Etsy’s payment options at checkout | Only after you click the PayPal button |
Late Klarna payments can bring fees and hurt your ability to borrow, so treat it like any other credit. If you already use PayPal’s installments elsewhere, our guide to how PayPal Pay Later works explains the terms and limits.
Can Etsy Pay You Through PayPal?
No. Etsy can’t pay you through PayPal. Every sale, including orders a buyer paid with PayPal, goes into your Etsy Payment account and then to your bank on your deposit schedule. In Pakistan, the UAE and other Payoneer countries, it goes to Payoneer instead. Etsy says it can’t send sale funds to a PayPal account.
That’s why Laura’s PayPal balance never moved. Her buyers paid with PayPal, but PayPal paid Etsy, and Etsy deposited her sales into her bank every week. Etsy calls this integrated PayPal. Its Etsy Payments Policy also describes an older setup, standalone PayPal, that a few shops still use.
| What matters | Integrated PayPal | Standalone PayPal |
|---|---|---|
| Where the money goes | Your Etsy Payment account, then your bank or Payoneer | Your own PayPal account |
| Fees | Etsy’s payment processing fee only, no PayPal fee | PayPal’s own fees |
| Etsy seller protection | Covered when eligible | Not covered by Etsy’s Purchase Protection for sellers |
| Who can use it | Any shop enrolled in Etsy Payments where PayPal is available | Only some older shops. New sellers can’t choose it where Etsy Payments exists |
Do Sellers Pay PayPal Fees on Etsy?
Not with integrated PayPal. A PayPal order costs the same as a card order: Etsy’s payment processing fee plus the 6.5% transaction fee. On a $50 US order, that’s $1.75 for processing (3% plus $0.25) and $3.25 for the transaction fee. PayPal takes nothing extra from you.
Standalone PayPal sellers pay PayPal’s own fees on each sale instead. If that’s you, see how to cut PayPal fees on money you receive. Sellers who also run their own store can compare how Stripe and PayPal fees compare off Etsy.
Sellers in Pakistan, the UAE and Other Payoneer Countries
Sellers in Argentina, Brazil, Chile, China, Egypt, Georgia, Japan, Kazakhstan, Pakistan, Peru, Serbia, South Korea, Thailand, Ukraine and the UAE join Etsy Payments with a Payoneer account. Etsy’s help page on what Etsy Payments is lists these countries and notes that Payoneer’s own withdrawal minimums and fees apply.
Your buyers can still pay with PayPal, and the money reaches you through Payoneer. A seller in Lahore needs to set up a Payoneer account in Pakistan before opening the shop. Our comparison of Payoneer vs PayPal explains why Payoneer, not PayPal, is the route here.
Can You Pay Your Etsy Fees With PayPal?
Yes. If your shop owes Etsy money at the end of a month, you can pay the amount due with PayPal, a debit card, a credit card or a prepaid card. Etsy accepts the payment between the 1st and the 15th of the month. Fees normally come out of your sales first, so busy shops rarely see a bill.
- Open Shop Manager, go to Finances and select Payment account.
- Select Pay now under Amount due.
- Choose the amount, pick PayPal and submit the payment.
US shops can turn on autobilling so the amount due is paid automatically each month. Sellers in Türkiye can’t use PayPal for their bill and must pay by card.
What to Do When a PayPal Bill Payment Fails
Sellers on Etsy’s forums report that a failed PayPal bill payment often goes through after a few hours. If it fails again, log in to PayPal and check the linked card or bank, then retry. If it still fails, pay by card instead. Don’t let the 15th pass, because an unpaid amount due can lead to a restricted account.
Other Ways to Pay on Etsy
Etsy and PayPal are only one pairing. Most shops also accept credit and debit cards, Apple Pay, Google Pay, Etsy gift cards and credits, and prepaid Visa, Mastercard, American Express and Discover cards. Depending on your country, you may also see bank payments, Klarna or iDEAL at checkout.
- Cards: Visa, Mastercard, American Express, Discover, Diners Club and JCB. Buyers in the EEA may be asked to confirm the payment with their bank.
- Apple Pay and Google Pay: in the Etsy app and in supported browsers.
- Bank payments: through Stripe’s Link in the US and through your bank’s own approval screen in the UK.
- Etsy gift cards and credits: the only balance you can combine with another method.
- Klarna and iDEAL: Klarna in the markets listed above, iDEAL bank transfers in the Netherlands.
PayPal acceptance varies a lot between big retailers, too. If you like paying with PayPal, check whether Walmart accepts PayPal before you fill a cart there.
Frequently Asked Questions
Short answers to what buyers and sellers ask most about Etsy and PayPal.
Does Etsy use PayPal?
Yes, as one of several payment methods inside Etsy Payments. Etsy has its own PayPal integration, so when you pay with PayPal, the money goes to Etsy first and Etsy pays the seller. Your PayPal receipt shows Etsy, not the shop, and Etsy handles any PayPal dispute on the order. Etsy also uses other processors for cards and bank payments, so PayPal is one option among several at checkout.
Can I use PayPal on Etsy without a PayPal account?
Yes. Click the PayPal button at checkout and choose Pay with Debit or Credit Card instead of logging in. PayPal processes your card as a guest, then sends you back to Etsy to place the order. PayPal limits how often you can use guest checkout, so regular buyers either open a PayPal account or enter their card in Etsy’s own card field.
Why is PayPal not showing at Etsy checkout?
Usually because the shop can’t offer it in its country. Shops in Türkiye and Israel don’t take PayPal, and some newer shops in Europe show it greyed out. Wrong region settings can also hide it, so check the country and currency at the bottom of any Etsy page. If PayPal appears in other shops but not one, the issue is that shop.
Does Etsy charge extra if I pay with PayPal?
No. Buyers pay the same price whether they use PayPal, a card or Apple Pay. Sellers don’t pay extra either, because integrated PayPal carries only Etsy’s normal payment processing fee. Your bank or card issuer could add its own foreign transaction fee on an international order, so check the currency before you pay. PayPal can also convert the currency at its own rate, so compare it with your card’s rate first.
Can I turn PayPal off in my Etsy shop?
Not if your shop uses Etsy Payments in a country where PayPal is available. Etsy shows PayPal as part of its checkout, and sellers can’t remove single payment methods. That costs you nothing, since PayPal orders carry the same fees as card orders and Etsy handles PayPal disputes for you. Many US and UK buyers prefer PayPal, so keeping it can help your conversion rate.
Do Etsy sellers get paid through PayPal?
Almost never now. Sellers enrolled in Etsy Payments receive every sale in their Etsy Payment account, then in their bank or Payoneer account on a daily, weekly, every-two-weeks or monthly schedule. Only some older shops with standalone PayPal still receive PayPal orders in their own PayPal account. They pay PayPal’s fees on those sales and lose Etsy’s seller protection on them.
Does Etsy take PayPal in the UK and Australia?
Yes. Buyers in the UK and Australia can pay with PayPal in any shop that offers it. Canadian buyers can use it too. Sellers in all three countries get paid through Etsy Payments to a local bank account. UK sellers pay 4% plus £0.20 per order in processing fees, and Australian sellers pay 3% plus A$0.25 on domestic orders and 4% plus A$0.25 on international ones.
Can I use PayPal on Etsy in Pakistan?
Not as a buyer, because PayPal doesn’t open accounts for people living in Pakistan. Pakistani buyers can pay on Etsy with a debit or credit card enabled for international payments. Pakistani sellers can open an Etsy shop and join Etsy Payments with a Payoneer account. Their buyers abroad can still pay with PayPal, and the money arrives through Payoneer before you withdraw it to a local bank.
Can I get a refund on Etsy if I paid with PayPal?
Yes. A refund from the seller or from an Etsy case goes back to your PayPal account or the funding source you used. Start with Help with order on your Etsy purchase, then open a case if it’s eligible. If Etsy can no longer help, you can open a PayPal dispute within 180 days of the payment. Refunds usually show in PayPal within a few days, and card refunds can take longer.
Does Etsy Take PayPal? Yes, Through Etsy Payments
Laura’s two problems turned out to be simple. The bride had used PayPal guest checkout on several orders that month and hit PayPal’s limit, so the button stopped offering her card. She paid with the same card in Etsy’s own card field and the sign shipped on time. Laura’s missing PayPal money had never been missing. It sat in her Etsy Payment account and went to her bank every Monday, minus the same fee she paid on card orders.
So, does Etsy take PayPal? Yes, in most countries, but always through Etsy’s own checkout. Buyers get Etsy’s case system on top of PayPal’s protection, which matters most on custom orders. Sellers get one payout, one fee and no PayPal account to manage. When PayPal is missing, the cause is usually the shop’s country, your region settings or PayPal’s own limits. Which way do you pay on Etsy today, and does it still give you the protection your next custom order needs?
