Connect a new PayPal account to Open Banking in QuickBooks Online

Open Banking is Australia's new standard for sharing financial data securely, and is mandated by the Australian Competition and Consumer Commission (ACCC) as part of the Consumer Data Right (CDR). Banks are phasing out older bank feed types in favour of this more reliable, next-generation connection. 

The good news? Open Banking puts you in control of which apps can access your account, and delivers real-time data through a safer, more secure connection. 

This article will guide you through the process of upgrading your current PayPal bank feed to a new Open Banking feed. 

We’ll be guiding you through the following steps:

• Before you start: Your checklist
• Option 1 - Connect your PayPal account directly to Open Banking (for accounts with AUD transactions only)
• Option 2 - Connect your PayPal account via the PayPal Connector integration (for foreign/multi-currency transaction accounts only)
• Additional information (troubleshooting, managing your feed, FAQ)

Before you start: Your checklist

Work through the checklist below before connecting your bank feed. This will ensure you have everything you need for a smooth setup process.

• Enable pop-ups in your web browser settings. You do this by selecting the three vertical dots (menu) in the top-right corner of your browser. Select Settings. Search for “pop-up” and follow the prompts.
• Have your Australian Business Number (ABN) or Australian Company Number (ACN) ready.  Can’t find your ABN? Use the ABN Lookup website to find it quickly. For an ACN, visit the ASIC Organisations and Business Name search. If you don't have a business but manage a rental property or a hobby, you may qualify to apply for an ABN. Check your eligibility at the ATO website.
• Categorise any pending transactions in QuickBooks before connecting to ensure your books are up to date. To categorise transactions, go to Accounting then Bank Transactions and post the transactions in the Pending tab. 
• Have your mobile phone nearby. Your bank will send a one-time password to verify your identity.

Option 1: Connect your PayPal account directly to Open Banking

As mentioned above, if you only process PayPal transactions in Australian Dollars (AUD) only, you can connect your account directly to an Open Banking feed.

1. Go to All apps, select Accounting, then select Bank transactions (Take me there).
2. Select Link account.
3. Search for PayPal Australia.
4. Select Yes, this is for business purposes.
5. If this is your first time connecting to Opening Banking, specify the business account and enter the relevant Australian Business Number (ABN) or Australian Company Number (ACN).
6. Review the consent details and select Agree.
7. Sign in with your online banking credentials and follow any required security steps.
   • Please note: you may see both a personal and a business profile. You would typically select the business profile. If you only see personal accounts, go back and switch to the business profile. This is the single most common reason business accounts don't appear in the setup process.
8. Select the account(s) you want to connect to QuickBooks Online. You can select more than one.
   • If an account is missing or not displaying, check if these apply:
     • You're signed in to the personal profile, not the business profile — go back and switch to the business profile
     • You're not set up as a data sharing delegate — complete Step 1 or leave for up to 1 business day to be reflected in the bank’s system.
     • The account type isn't yet supported by your bank for Open Banking (some credit cards, loan accounts, and specialist accounts are still being added). These transactions will need to be imported via a CSV file.
9. Connect the feed to the required Chart of Account code or Account name in the picklist. Do this for each bank account you want to connect to QuickBooks. If you’re connecting a bank account to QuickBooks for the first time, you can also create a new Chart of Account code here if required by selecting Add New.
10. Select the date you would like the transactions to import from. We recommend selecting today’s date to avoid duplicate transactions.
11. Select Connect and you're done!

With an Open Banking connection, your PayPal transactions show up in the Bank transactions section within the Accounting tab. 

Should your PayPal account not show up in the list for data sharing, please contact PayPal support for further help.

Option 2: Connect your PayPal account via the PayPal Connector integration

As mentioned above, if you process PayPal transactions in a foreign currency (like USD, EUR, or GBP for example), you'll need to get the PayPal Connector by QuickBooks integration. It's a new and simple way to bring PayPal transactions into QuickBooks.

To get the integration, follow these steps:

1. Sign in to your QuickBooks Online account.
2. Go to Integrations and select Find integrations (Take me there).
3. Enter PayPal Connector by QuickBooks in the search bar, and select it.
4. Select Get integration now.
5. Select Continue.
6. Enter your PayPal account email address and password, then select Log in.
7. Review your app settings, and select Sync now.

You're all set! Your PayPal account is now connected via an Open Banking feed.

Transactions will automatically flow through to the Integration transactions tab in QuickBooks Online, and no further action is needed on your part.

Check out your PayPal transactions now:

1. Go to All apps , select Accounting, then select Integration transactions (Take me there).

Additional information

For additional information and troubleshooting tips, see our primary article on connecting a new bank feed to Open Banking in QuickBooks Online.