Adaptive Payments (Paypal)

There may be requirement where we need to receive payment from ONE BUYER and send this payment to MULTIPLE SELLERS. For example: In a real time scenario, suppose there is a store where multiple sellers are there to sell products. One buyer will be able to buy products from multiple sellers at once and in this case, amount will be paid by one buyer and will be given to multiple sellers. Such payment can be handled through PAYPAL in a effective way, called, Adaptive Payments.

Adaptive payments handles payments between a sender of a payment and one or more receivers of the payment. The website owner must have a PayPal Business account. Buyer and other receivers can have any PayPal account. Senders/Buyers and receivers are not required to have PayPal accounts initially. PayPal prompts a sender to create an account before a payment can be completed. A receiver must create an account to receive the funds after the payment completes.

There are two ways to implement this,

1. Parallel Adaptive Payments
2. Chained Adaptive Payments

Parallel Adaptive Payments: A parallel payment is a payment from a sender that is split directly among 2-6 receivers. Where, the sender knows the receivers and the amount paid to each one. Technically, a parallel payment is a set of multiple payments made in a single Pay request.


Chained Adaptive Payments: A chained payment is a payment from a sender that is indirectly split among multiple receivers. It is an extension of a typical payment from a sender to a receiver, in which a receiver, known as the primary receiver, passes part of the payment to other receivers, who are called secondary receivers. The sender deals only with the primary receiver and does not know about the secondary receivers, including how a payment is split among receivers.




We have recently done this job in our one project. Where we have sellers of books, buyers. Buyer can buy books from different sellers at once using available shopping cart and after payment, amount is distributed among all sellers.