How to Setup New PayPal Business Account – Part 2

This article is in continuation of the previous article Steps for New PayPal Business Account – Part 1. 

Step 6 – Download Certificate

The certificate is downloaded to a file named cert_key_perm.txt. Be sure to save the file to a secure location.

Note: PayPal formats the API Certificate file in PEM format. The file contains both yourpublic certificate and the associated private key. Although the PEM certificate is not human readable, the file is not encrypted.


On the certificate marked as Active, click Download certificate and follow the steps inManaging Certificate Credentials for details on downloading and using the updated certificate.

After you’ve imported the new API Certificate, test your integration to ensure it works with the new certificate.


New PayPal Business Account

New PayPal Business Account


Step 7 – Encrypting your certificate – Using Cygwin

Tip: If you do use encryption, be sure to encrypt both your Sandbox and your live API certificates.

The steps to encrypt your certificate require the OpenSSL encryption tool. While Unix users likely have this tool installed with their operating system, Windows users need to download OpenSSL.

  1. Open a CYGWIN command prompt.
    In Windows, select Start > Programs > Cygwin > Cygwin Terminal
  2. Change directories to the location of the certificate you want to encrypt (cert_key_pem.txt)
  3. execute the following command: openssl pkcs12 -export -in cert_key_pem.txt -inkey cert_key_pem.txt -out paypal_cert.p12

Note: When encrypting a certificate, you’re prompted for a password that you use to decrypt the file. Enter a password at the Enter Export Password prompt and be sure to store it in a secure location.

The above process creates a file named ‘paypal_cert.p12’, your encrypted API certificate.

 Step 8 – Use the P12 certificate in project

Copy the generated file- paypal_cert.p12 to the project workspace – as configured in PayPal SDK config file located @ /CommerceTrunk/config/technostixs/payment/paypal/

Specify the following details in SDK Config file


  • Enter the Account Username and Account Password value generated in the above step
New PayPal Business Account

New PayPal Business Account

  • Certificate Key is the password used during the encryption of the certificate
    • CertKey=TechnoStix1
  • Certificate path
    • CertPath=c:\\APP\\ATG\\ATG10.1.2\\TechnoStixs\\config\\technostixs\\payment\\paypal\\paypal_cert.p12
  • Next enter the AppId.
    • For the sandbox testing this value will always be – APP-80W284485P519543T

Step 9 – Sample PayPal SDK Config file




#for local testing use this path



# Subject is optional, only required in case of third party permission

#acct1.Subject =


Step 10 – Enable Merchant account for reference transactions

Contact PayPal team to enable the merchant acount

If not enabled we are bound to get the error during SetExpressCheckoutReq  

SetExpressCheckout – Merchant not enabled for reference transactions

After enabling the reference transaction for the new business account –, the user will be redirected to PayPal site

Note: Reference transactions in the sandbox require approval by Merchant Technical Support of a sandbox test user.


Step 11 – Test the integration

After you’ve imported the new API Certificate, test your integration to ensure it works with the new certificate.

New PayPal Business Account

New PayPal Business Account


Hope this steps would help you in creating new PayPal business account for your integration. Write us your review and concerns if any.


You may also like this:

>>>New PayPal Business Account Steps – Part 1


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