PayPal Agent Toolkit

The PayPal Agent Toolkit enables popular agent frameworks including OpenAI's Agent SDK, LangChain, Vercel's AI SDK, and Model Context Protocol (MCP) to integrate with PayPal APIs through function calling. It includes support for TypeScript and is built on top of PayPal APIs and the PayPal SDKs.

Available tools

The PayPal Agent toolkit provides the following tools:

Invoices

• create_invoice: Create a new invoice in the PayPal system
• list_invoices: List invoices with optional pagination and filtering
• get_invoice: Retrieve details of a specific invoice
• send_invoice: Send an invoice to recipients
• send_invoice_reminder: Send a reminder for an existing invoice
• cancel_sent_invoice: Cancel a sent invoice
• generate_invoice_qr_code: Generate a QR code for an invoice

Payments

• create_order: Create an order in PayPal system based on provided details
• get_order: Retrieve the details of an order
• pay_order: Process payment for an authorized order
• create_refund: Process a refund for a captured payment.
• get_refund: Get the details for a specific refund.

Dispute Management

• list_disputes: Retrieve a summary of all open disputes
• get_dispute: Retrieve detailed information of a specific dispute
• accept_dispute_claim: Accept a dispute claim

Shipment Tracking

• create_shipment_tracking: Create a shipment tracking record
• get_shipment_tracking: Retrieve shipment tracking information
• update_shipment_tracking: Update shipment tracking information

Catalog Management

• create_product: Create a new product in the PayPal catalog
• list_products: List products with optional pagination and filtering
• show_product_details: Retrieve details of a specific product

Subscription Management

• create_subscription_plan: Create a new subscription plan
• list_subscription_plans: List subscription plans
• show_subscription_plan_details: Retrieve details of a specific subscription plan
• create_subscription: Create a new subscription
• show_subscription_details: Retrieve details of a specific subscription
• update_subscription: update an existing subscription
• cancel_subscription: Cancel an active subscription

Reporting and Insights

• list_transactions: List transactions with optional pagination and filtering
• get_merchant_insights: Retrieve business intelligence metrics and analytics for a merchant

TypeScript

Installation

You don't need this source code unless you want to modify the package. If you just want to use the package run:

npm install @paypal/agent-toolkit

Requirements

• Node 18+

Usage

The library needs to be configured with your account's client id and secret which is available in your PayPal Developer Dashboard.

The toolkit works with Vercel's AI SDK and can be passed as a list of tools. For more details, refer our examples

import { PayPalAgentToolkit } from '@paypal/agent-toolkit/ai-sdk';
const paypalToolkit = new PayPalAgentToolkit({
  clientId: process.env.PAYPAL_CLIENT_ID,
  clientSecret: process.env.PAYPAL_CLIENT_SECRET,
  configuration: {
    actions: {
      invoices: {
        create: true,
        list: true,
        send: true,
        sendReminder: true,
        cancel: true,
        generateQRC: true,
      },
      products: { create: true, list: true, update: true },
      subscriptionPlans: { create: true, list: true, show: true },
      shipment: { create: true, show: true, cancel: true },
      orders: { create: true, get: true },
      disputes: { list: true, get: true },
    },
  },
});

To use sandbox mode, add context within your configuration.

configuration: {
  context: {
    sandbox: true,
  }
}

Initializing the Workflows

import { PayPalWorkflows, ALL_TOOLS_ENABLED } from '@paypal/agent-toolkit/ai-sdk';
const paypalWorkflows = new PayPalWorkflows({
  clientId: process.env.PAYPAL_CLIENT_ID,
  clientSecret: process.env.PAYPAL_CLIENT_SECRET,
  configuration: {
    actions: ALL_TOOLS_ENABLED,
  },
});

Usage

Using the toolkit

const llm: LanguageModelV1 = getModel(); // The model to be used with ai-sdk
const { text: response } = await generateText({
  model: llm,
  tools: paypalToolkit.getTools(),
  maxSteps: 10,
  prompt: `Create an order for $50 for custom handcrafted item and get the payment link.`,
});

PayPal Model Context Protocol

The PayPal Model Context Protocol server allows you to integrate with PayPal APIs through function calling. This protocol supports various tools to interact with different PayPal services.

Running MCP Inspector

To run the PayPal MCP server using npx, use the following command:

npx -y @paypal/mcp --tools=all PAYPAL_ACCESS_TOKEN="YOUR_ACCESS_TOKEN" PAYPAL_ENVIRONMENT="SANDBOX"

Replace YOUR_ACCESS_TOKEN with active access token generated using these steps: PayPal access token. Alternatively, you could set the PAYPAL_ACCESS_TOKEN in your environment variables.

Custom MCP Server

You can set up your own MCP server. For example:

import { PayPalAgentToolkit } from “@paypal/agent-toolkit/modelcontextprotocol";
import { StdioServerTransport } from "@modelcontextprotocol/sdk/server/stdio.js";

const orderSummary = await paypalWorkflows.generateOrder(
  llm,
  transactionInfo,
  merchantInfo,
);

const server = new PayPalAgentToolkit({
	accessToken: process.env.PAYPAL_ACCESS_TOKEN
});

async function main() {
  const transport = new StdioServerTransport();
  await server.connect(transport);
  console.error("PayPal MCP Server running on stdio");
}

main().catch((error) => {
  console.error("Fatal error in main():", error);
  process.exit(1);
});

Usage with MCP host (Claude Desktop/Cline/Cursor/Github Co-Pilot)

This guide explains how to integrate the PayPal connector with Claude Desktop.

Prerequisites

• Claude Desktop application installed
• installing Node.js locally

Installation Steps

1. Install Node.js

Node.js is required for the PayPal connector to function:

1. Visit the Node.js official website, download and install it.
2. Requirements: Node 18+

2. Configure PayPal Connector with MCP host (Claude desktop / Cursor / Cline)

We will show the integration with Claude desktop. You can use your favorite MCP host.

1. Open Claude Desktop
2. Navigate to Settings
3. Find the Developer or Advanced settings section
4. Locate the external tools or connectors configuration area
5. Add the following PayPal connector configuration to this ~/Claude/claude_desktop_config.json:

{
   "mcpServers": {
     "paypal": {
       "command": "npx",
       "args": [
         "-y",
         "@paypal/mcp",
         "--tools=all"
       ],
       "env": {
         "PAYPAL_ACCESS_TOKEN": "YOUR_PAYPAL_ACCESS_TOKEN",
         "PAYPAL_ENVIRONMENT": "SANDBOX"
       }
     }
   }
}

Make sure to replace YOUR_PAYPAL_ACCESS_TOKEN with your actual PayPal Access Token. Alternatively, you could set the PAYPAL_ACCESS_TOKEN as an environment variable. You can also pass it as an argument using --access-token in "args" Set PAYPAL_ENVIRONMENT value as either SANDBOX for stage testing and PRODUCTION for production environment.

6. Save your configuration changes

3. Test the Integration

1. Quit and restart Claude Desktop to apply changes
2. Test the connection by asking Claude to perform a PayPal-related task
   • Example: "List my PayPal invoices"

Environment Variables

The following environment variables can be used:

• PAYPAL_ACCESS_TOKEN: Your PayPal Access Token
• PAYPAL_ENVIRONMENT: Set to SANDBOX for sandbox mode, PRODUCTION for production (defaults to SANDBOX mode)

This guide explains how to generate an access token for PayPal API integration, including how to find your client ID and client secret.

Prerequisites

• PayPal Developer account (for Sandbox)
• PayPal Business account (for production)

Finding Your Client ID and Client Secret

1. Create a PayPal Developer Account:

   • Go to PayPal Developer Dashboard
   • Sign up or log in with your PayPal credentials

2. Access Your Credentials:

   • In the Developer Dashboard, click on Apps & Credentials in the menu
   • Switch between Sandbox and Live modes depending on your needs

3. Create or View an App:

   • To create a new app, click Create App
   • Give your app a name and select a Business account to associate with it
   • For existing apps, click on the app name to view details

4. Retrieve Credentials:

   • Once your app is created or selected, you'll see a screen with your:
     • Client ID: A public identifier for your app
     • Client Secret: A private key (shown after clicking "Show")
   • Save these credentials securely as they are required for generating access tokens

Generating an Access Token

Using cURL

curl -v https://api-m.sandbox.paypal.com/v1/oauth2/token \\
  -H \"Accept: application/json\" \\
  -H \"Accept-Language: en_US\" \\
  -u \"CLIENT_ID:CLIENT_SECRET\" \\
  -d \"grant_type=client_credentials\"

Replace CLIENT_ID and CLIENT_SECRET with your actual credentials. For production, use https://api-m.paypal.com instead of the sandbox URL.

Using Postman

1. Create a new request to https://api-m.sandbox.paypal.com/v1/oauth2/token
2. Set method to POST
3. Under Authorization, select Basic Auth and enter your Client ID and Client Secret
4. Under Body, select x-www-form-urlencoded and add a key grant_type with value client_credentials
5. Send the request

Response

A successful response will look like:

{
  "scope": "...",
  "access_token": "Your Access Token",
  "token_type": "Bearer",
  "app_id": "APP-80W284485P519543T",
  "expires_in": 32400,
  "nonce": "..."
}

Copy the access_token value for use in your Claude Desktop integration.

Token Details

• Sandbox Tokens: Valid for 3-8 hours
• Production Tokens: Valid for 8 hours
• It's recommended to implement token refresh logic before expiration

Using the Token with Claude Desktop

Once you have your access token, update the PAYPAL_ACCESS_TOKEN value in your Claude Desktop connector configuration:

{
  "env": {
    "PAYPAL_ACCESS_TOKEN": "YOUR_NEW_ACCESS_TOKEN",
    "PAYPAL_ENVIRONMENT": "SANDBOX"
  }
}

Best Practices

1. Store client ID and client secret securely
2. Implement token refresh logic to handle token expiration
3. Use environment-specific tokens (sandbox for testing, production for real transactions)
4. Avoid hardcoding tokens in application code

Disclaimer

AI-generated content may be inaccurate or incomplete. Users are responsible for independently verifying any information before relying on it. PayPal makes no guarantees regarding output accuracy and is not liable for any decisions, actions, or consequences resulting from its use.