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PayPal MCP

The PayPal Model Context Protocol (MCP) server lets merchants interact with PayPal services using natural language through AI tools and MCP clients. Connect via Cequence AI Gateway to create invoices, manage transactions, and handle payment-related tasks from your preferred AI client (e.g. Claude, Cursor).

1. Overview​

PayPal MCP is a remote, vendor-hosted MCP server provided by PayPal. You connect to it from Cequence AI Gateway; no local installation is required for the remote server.

  • Server URL: https://mcp.paypal.com/mcp
  • Transport: HTTP (Streamable HTTP)
  • Hosted by: PayPal

The remote server supports authentication so you can continue tasks across devices with a single PayPal login after authorizing once. Full functionality typically requires a PayPal Business Account.

2. Supported authentication types​

TypeSupportedNotes
OAuth 2.0YesRequired for production use. Use when adding PayPal MCP in Cequence AI Gateway to sign in with your PayPal account and grant access.
SandboxYesSandbox credentials are available for testing; use the same endpoint with sandbox auth as configured by PayPal.

When you add PayPal MCP in Cequence AI Gateway, authentication is typically handled via OAuth 2.0. Configure the gateway to use production or sandbox as needed for your environment.

3. What can you do with this MCP server​

With the PayPal MCP server, you can:

  • Create and manage invoices — Create invoices and shareable links using natural language (primary featured capability).
  • Manage transactions — Interact with PayPal transaction and payment data.
  • Payment management — Handle payment-related operations through your AI client.
  • Agentic commerce — Use AI agents to perform PayPal operations via natural language prompts.

PayPal continues to expand MCP tools for merchants; invoicing is the main capability documented at launch.

4. Prerequisites​

Before adding PayPal MCP in Cequence AI Gateway, ensure you have:

  • Access to Cequence AI Gateway (e.g. beta.aigateway.cequence.ai)
  • A PayPal account; a PayPal Business Account is required for full functionality
  • For OAuth authentication: an auth app with client credentials (client ID and client secret) in your vendor account, unless the server supports Dynamic Client Registration (DCR). Check PayPal’s current MCP docs for whether DCR is supported.
  • For testing: Sandbox credentials as provided by PayPal for non-production use

5. Example workflows​

  • “Create an invoice for [customer] for [amount] and send me the shareable link.”
  • “List my recent PayPal transactions.”
  • “Draft an invoice for the services we discussed and share the link.”

6. Connecting MCP server from Cequence AI Gateway​

  1. Log in to Cequence AI Gateway.
  2. Choose your tenant.
  3. Go to App catalogue.
  4. Filter by Remote MCP server.
  5. Search for PayPal MCP and then select it.
  6. Click Create MCP server.
  7. Choose auth method. If OAuth, you need an auth app with client credentials in your vendor account (see Prerequisites).
  8. Complete the setup as prompted, select tools, and deploy.

Use the generated MCP server URL in your client as described in the Client Configuration docs. For detailed UI steps and screenshots, see Create a third-party MCP Server.

7. Additional information​