If you're a seasoned PayPal user but don't use it for recurring payments, then you're missing out on a lot.
PayPal is a popular payment platform that offers many different ways to make seamless payments—and yes, PayPal lets you automate all of your recurring payments for ongoing expenses like subscriptions, utilities, or gym memberships.
In fact, 81% of PayPal users have found the service as an easy way to make payments. So if you're looking to set up recurring payments through PayPal, you've come to the right place.
To help you out, I've compiled this step-by-step process for setting up recurring payments on PayPal, whether you're subscribing to a service or paying a regular bill.
Table of Contents
What are Recurring Payments?
Recurring payments are automatic transactions that deduct funds from your account at regular intervals, say monthly or annually, for ongoing expenses like subscriptions, utilities, or gym memberships. No more scrambling to remember due dates or missing crucial payments!
Types of PayPal Recurring Payments
PayPal lets you automate your recurring payments based on the type of payment you're looking to automate.
I typically use this service for my subscription renewals. Besides, last month, I started using this service to pay for my rent. So you should expect PayPal recurring payments to meet your automatic payment needs.
The different types of PayPal recurring payments include:
- Subscriptions: From streaming services to fitness apps, automate payments for any ongoing subscription.
- Billing agreements: Set up automatic payments for regular bills like utilities, internet, or phone plans.
- Installment plans: Allows you to split larger purchases into small amounts that can be paid in different installments. This is typically referred to as Buy Now Pay Later and PayPal offers this service through PayPal Pay in 4.
How To Set Up Recurring Payments On PayPal?
Setting up recurring payments with PayPal is simple.
But before you begin:
- Ensure you have a PayPal account in good standing with a linked funding source (bank account or credit card).
- Have the merchant's website or app open, ready to initiate the recurring payment.
Steps to Set Up PayPal Recurring Payments
To set up recurring payments on PayPal:
- During checkout on the merchant's website/app, choose PayPal as your payment method. Look for the familiar PayPal logo or button.
- Upon selection, you'll be redirected to the PayPal login page. Log in and review the payment details displayed. This includes the merchant name, amount, and chosen funding source.
- Pay close attention to the section labeled "Recurring Billing Agreement." This displays the frequency (e.g., monthly) and duration (e.g., indefinite) of the payment. Review the terms and conditions carefully.
- If everything looks accurate, tick the checkbox agreeing to the terms and conditions. Click "Pay Now" to authorize the recurring payment.
- Upon successful authorization, you'll see a confirmation message on both PayPal and the merchant's website. Congratulations! You've set up your recurring payment on PayPal.
PayPal Recurring Payments To Friends
Unfortunately, PayPal does not currently offer a built-in recurring payment feature for sending money to friends and family. While the platform excels at facilitating quick and individual transfers, it lacks the functionality for automated, recurring payments between personal accounts.
This limitation stems from the nature of PayPal's "Friends and Family" transactions, which are designed for informal payments between trusted individuals who don't require buyer/seller protection. Recurring payments, due to their scheduled nature, could potentially be misused for exploitative situations like unauthorized charges.
How To Manage Automatic Payments On PayPal
PayPal does not only let you set up automatic payments, but it also lets you manage these payments to make sure they are running well as you want.
To manage your automatic payments on PayPal:
- Go to "Settings."
- Click "Payments."
- Select "Automatic payments."
- Select the merchant.
How To Cancel PayPal Recurring Payments
Recurring payments, while convenient for many, can sometimes outlive their usefulness or strain your budget. Thankfully, canceling recurring payments on PayPal is a straightforward process.
To do so:
- Log in to your PayPal account through the website or mobile app.
- Find the "Settings" section, typically located in the account menu or under the gear icon.
- Look for the option labeled "Payments" or "Manage Automatic Payments." Click on it to access your active recurring payments.
- From the list displayed, find the merchant or service whose recurring payment you want to cancel. Click on the specific payment or its corresponding "Details" button.
- Look for a button labeled "Cancel" or "Cancel Automatic Billing." Clicking this will initiate the cancellation process.
- Review the confirmation message carefully. Ensure it aligns with your intention to cancel the recurring payment permanently and cancel the payment.
- You should receive a confirmation email and notification within your PayPal account confirming the cancellation.
Benefits of Using PayPal for Recurring Payments
Using PayPal for your recurring payment needs comes with a plethora of benefits, some of which include:
- Convenience: Enjoy the time-saving advantage of automated payments.
- Security: PayPal's industry-leading security protects your financial information.
- Flexibility: Manage payments, update details, or cancel easily through your PayPal account.
- Detailed tracking: Keep track of all recurring payments through your transaction history.
Alternatives to PayPal Recurring Payments
- Bank bill pay services: If the recurring payment is for rent or specific services, check if your bank offers a bill pay service. This could allow you to schedule automated payments directly.
- Third-party apps: Some apps like Venmo and Cash App provide recurring payment features. However, be mindful of potential fees and terms of service before relying on them.
- Manual reminders: This low-tech option involves setting calendar alerts or reminders to trigger manual PayPal transfers on the desired schedule. While simple, it requires consistent manual intervention.
Final Thoughts
PayPal recurring payments offer a convenient, secure, and flexible solution for managing your monthly obligations. By automating your payments, you can streamline your finances, avoid late fees, and enjoy peace of mind. Always research and choose the option that best suits your needs and preferences because, after all, your personal opinion is the center point.
Do you use PayPal recurring payments? Share your experiences and tips in the comments below!