How To Set Up Paypal Recurring Payment To A Friend

Many businesses have adopted recurring billing as it allows them to automatically invoice their customers on a prearranged schedule which could be weekly or monthly. While PayPal allows businesses to set up recurring billing, many are wondering whether recurring billing could be set up to a personal account. I’ll be looking at this and more in this article. 

Your friend will have to set up a subscription for you if you want to make recurring payments to them. Also, your friend will need to have a PayPal business account and will be charged a fee for every transaction. This option will be more practical if you are paying a sizeable amount of money to your friend.  

It’s indeed good news that the largest and most popular payment gateway in the world, PayPal obviously, has created a recurring payment system. This allows you to easily set up payments for subscriptions on your PayPal account. In fact, you can even link it to your website. A lot of businesses are now enjoying the convenience that PayPal’s recurring payment system offers. The wide reach of PayPal makes it easy for businesses to receive recurring payments from their customers all over the globe. 

What is PayPal recurring payment?

PayPal recurring payment is a service that allows you to automatically invoice your customers as I said earlier. For you to have access to recurring payment on PayPal, you need to have a business account. If you don’t have a business account, you can easily upgrade your existing personal account to a business account. Businesses that offer monthly services will find PayPal recurring payment extremely convenient. Manual billing can turn out to be very tedious and impractical. Trust me, I know. 

Recurring payments are incredibly useful to businesses that provide monthly services. When customers pay the same amount every month, this kind of billing is called a subscription model. It’s common for businesses like TV and internet providers, food delivery kits, gyms, and other consistent products and services. PayPal isn’t the only payment gateway that offers recurring payment as many others also offer the service. However, the popularity and convenience of PayPal are unmatched by any other payment gateway. 

PayPal recurring payment has the following advantages – allows you to build a constant and consistent revenue stream, you can focus more on your marketing since payments are automated, automated payments mean you don’t need to actively work to receive and process payments, and the extensive reach of PayPal allies you to receive payments from almost anywhere in the world. And I must also mention that PayPal recurring system is also easy to set up. You’ll be done with the process in less than 15 minutes. 

How Does PayPal Recurring Payments Work?

You will need to have a PayPal business account before you can set up recurring payments. PayPal already has a step-by-step guide on how businesses can set up recurring and subscription billing to their customers/website. 

The truth is that you may have to consider other alternatives if you intend to send recurring payments to your friend. The fees associated with PayPal recurring fee is higher than what you’d pay when using a personal account. And this is why PayPal made recurring payments only available to businesses. It’s better to use your personal account to send payments to your friends and family on PayPal and the transaction fees are usually low. 

But if you must set up a recurring payment to your friend, then your friend must have a PayPal business account, set up a subscription for you, and pay the higher transaction fees.  

How to set up PayPal recurring payments to a customer

If you are a business owner and would like to set up recurring payments for your customers, then you’d have to follow the steps below:

  • You’ll have a subscribe button on your website that your customer will click to subscribe to your services/products. 
  • Your customer will be redirected to PayPal and asked to log in. 
  • The subscription terms will be displayed so the customer knows what he/she is signing up for. If the customer is okay with the terms, he/she will have to click the “Agree and Subscribe” button. 
  • That’s it. The customer will be redirected back to your website

Bit what happens if your customer doesn’t have a PayPal account? The customer will still be able to subscribe without creating a PayPal account if he/she is residing in the US or Canada. For customers outside these two countries, they will have to open a PayPal account if they want to subscribe to your services/products. 

How do I cancel a recurring payment, subscription, or automatic billing agreement I have with a merchant?

You can cancel any recurring payment you are making to any merchant. To do this, you’ll first have to log in to your PayPal account using the PayPal app or website. Then you’ll click on Settings which can be found at the top of the page. After that, click “Payments” and then click “Manage pre-approved payments”. You’ll see the “Cancel” or “Cancel automatic billing”. Click on it and follow the instructions.

If you don’t have a PayPal account, you will have to contact the merchant directly to cancel the agreement. If you can’t contact the merchant, you should contact PayPal Customer Service by phone. Here’s how:

  • Visit the PayPal website.
  • Click Help. You’ll find this at the top of the page. 
  • Click Call customer support.
  • Click You can always Call us as a Guest.

Please note that after canceling a payment, subscription, or automatic billing agreement, you will still have to pay the merchant for any service or good you received. A subscription can be canceled up until the day before the next scheduled payment in order for you not to be charged.


  • Tristan

    Tristan has a strong interest in the intersection of artificial intelligence and creative expression. He has a background in computer science, and he enjoys exploring the ways in which AI can enhance and augment human creativity. In his writing, he often delves into the ways in which AI is being used to generate original works of fiction and poetry, as well as to analyze and understand patterns in existing texts.