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All Tutorials /Xero

How to Connect PayPal to Xero

Updated on:
April 6, 2026
By:
Madhav Bhandari
Use this interactive demo to learn how to connect your PayPal account to Xero.

‍

‍

It is very easy to connect PayPal to Xero. Here’s a quick guide on how to do it in simple steps:

‍

  1. On Xero's main dashboard, head over to the top-left corner and click the 'Company' tab.
  2. Select 'Settings' from the list of options.
  3. After that, click 'Payment Services' to proceed.
  4. Scroll down to the Available Payment Services tab, then click the 'Add Other' button next to it.
  5. Subsequently, pick 'PayPal' from the available options.
  6. One by one, fill out the input fields with the required information, specifically the Account Name, Account Email, and Xero Payment Account where you wish to deposit the payments.
  7. Finally, click 'Save' to enable the connection between your PayPal and Xero accounts.

📌 Why this matters

Connecting PayPal to Xero automatically syncs your payment data, eliminating manual transaction entry and reducing reconciliation errors. Beyond basic bookkeeping convenience, this integration creates a real-time financial picture that helps you spot cash flow patterns and customer payment behaviors you'd otherwise miss.

When your PayPal transactions flow directly into your accounting system, you can track which products or services generate the fastest payments, identify seasonal trends, and make data-driven decisions about payment terms and pricing strategies.

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