General information about Paypal adaptive payment

What is Paypal adaptive payment
Paypal provide a very flexible and useful payment methods handle multiple payments in one big transaction. Mass payment is one of those payment methods. But I am trying to introduce is adaptive payment method.

The Adaptive Payments API enables you to send money in many different scenarios, from simple to complex. For example, you might build a small send money application for a social networking site or a robust payroll system. Another good example is if you are a market places owner(or a multiple sellers/vendors store owner), you may need to manually pay sellers sales later if you collect all payments, or seller need manually to pay you commissions(transactions fees) per month if let seller collects payment.

By using Paypal adaptive payment method, you will be able to let customer (buyer) to you and sellers at the same time in one big transaction.

For more detailed information on Paypal Adaptive Payment API, please visit here

Available payment options
Paypal adaptive payment allow following different payment options

1. Simple payment
This is just a normal payment method that happens in 1-1 payment. For example, your customer pays store for purchasing products from your store. Or you (the store) pay a seller commissions.



2. Parallel payment
This payment method, allow 1-n payments, i.e. buyer(sender) pay to multiple receivers.

For example, a customer purchaser at your market place purchase some products from seller A $15 and seller B $60 total $75. You as store(market place) owner will keep $5 from Seller A and $10 from seller B. The final payment will be

Customer pays $75 in total in one big transaction, it will goes
-> Seller A :$10
-> Seller B: $50
-> Store(Market Place): $15



3. Chained Payments

Use the same scenario above, but we use different way of payment. This time we use Paypal Adaptive chained payment.


For example, a customer purchaser at your market place purchase some products from seller A $15 and seller B $60 total $75. You as store(market place) owner will keep $5 from Seller A and $10 from seller B. The final payment will be

Customer pays store(market place) at $75
Store(market place) pays Seller A $10
Store(market place) pays Seller B $50



Choice of payment option
When it comes to the choice of payment options, it really depends on your business needs and how you want customer sees the payments.

Simple payments, it is simple and easy to implement. But in case you are running market place or multiple sellers store, you will need to handle the commissions manually later. For this payment option, you can use any other payment method availble from Paypal, you don not need to use Paypal Adaptive payments.

If you want customer to see payments goes to sellers, then you can choose parallel payments.
If you want hide sellers from customer, then you have to choose chained payments.

But there is one thing you need to consider:
Chained payment method is considered as advanced service of Paypal, you will need to get approved from Paypal before you can use it. If you use simple payment or parallel payment, then you don not need get approved from paypal.

What you need to do
In order to use Paypal Adaptive Payment API, you will need
1. Get a API credential

Click here on how to get your API credential (No approval required)

2. Get an Application ID from Paypal for your payment module
You will get the Application ID instantly if you only use basic service
You will need to wait for 2 weeks or more to get Application ID because has to approve it

Click here for more detailed instructions on how to get your Application ID

If you are thinking of building your own market place (multiple sellers store)
Addons-Modules.com is the one of lead vendor of PrestaShop modules and addons. Agile PrestaShop Multiple Seller modules and its accessory modules will help you build your own market place (multiple seller store) based on PrestaShop. Agile PrestaShop multiple seller modules provide all features and functionality for you to build your dream market places.

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