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PayPal Payouts vs. PayPal Mass Pay — Make the Switch

Last Modified: January 31, 2023


For merchants that use PayPal to pay their affiliates, the standard method has been via Mass Pay. If you’re a Refersion customer, here is our help article about this method. But now PayPal has a newer way which can be easier and save you money called PayPal Payouts. Let’s dive in and see why you should make the switch today.

Lower Fees.

This one benefit will probably be all the motivation most merchants will need! Via the older Mass Pay method, for transactions within the US, you would pay 2% of each recipient’s payment amount, up to $1 max. With Payouts, this turns into a flat fee instead of just $0.25. Unless your payouts to your affiliates are very small, you will pay less in fees for each transaction which will save you a decent amount over the long run.

For full information on different currencies and what you’d pay outside of the US, check out this page.

Better Technology.

There’s no need to get too technical here, but Payouts is PayPal’s newer API that provides better options. For example, you’ll be able to send up to 500 payouts in a single API call. Also, it’s generally easier for your developers to get it set up than the previous Mass Pay API.


Duplicate Checking.

Payouts can perform a check for potential duplicate pay requests. This will give you more peace-of-mind to make sure that you’re not paying affiliates more than you need to.

Additionally, since this is PayPal’s newest technology, you’re kept safer from fraud by switching over to Payouts.

You Will Have to Switch Anyway!

Finally, you’ll eventually have to make the switch because PayPal is phasing out Mass Pay:

New businesses can only use Payouts now, and they will eventually get everyone to switch over soon. Considering that Payouts is better anyway for the reasons mentioned above, you might as well do it now.

To make the switch, just contact PayPal through your business account.

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Written by

Ruthie Carey
Ruthie Carey