August 6th 2009 8:52 pm PT

PayPal now available for US Xbox LIVE Accounts


If you are in the United States, you can now use PayPal as a method of payment for the Xbox LIVE Marketplace.

You can use PayPal to buy Microsoft Points without having to associate your credit card information to your Xbox LIVE account. If you are new to PayPal, please sign up first and then follow the steps below to associate your account with Xbox LIVE.

It’s pretty easy and just like adding a credit card to your account. Sign in to and head to the account summary page. From there choose “Manage Payment Options”  (from the left navigation menu) then click “Add a new PayPal Account.” Follow the instructions and you’ll be set up in no time.



A couple of things to point out:

PayPal is currently supported for Xbox LIVE users in the U.S. only.
PayPal can only be used to purchase Microsoft Points on
PayPal accounts are not available for purchasing Microsoft Points on the Xbox 360 console.

You can associate multiple Pay Pal accounts with your Xbox LIVE account.


Archive By Larry Hryb, Xbox LIVE's Major Nelson

  • Anonymous

    oh yipppe another usa only thing………. lame.

  • Anonymous

    £19.99 for an on demand game ? that i can pick up for £10 in a shop.

    Where do u get off with your pricing ?

  • Tekkie neXt

    To those complaining about it being US only, maybe it’s because they’re testing it, seeing if it’s actually going to to be a viable alternative to Credit Cards.

    Microsoft is a US company, so it’s understandable stuff like this would hit the US first as a testing ground.

    So quit yer whining.

    Even though it’s a bit of a bad idea, people get screwed over with paypal based sales every day.

    I hope to god the Games on Demand prices are place holders Major, the Aussies and Kiwis are getting screwed with the current prices, it’s like the exchange rate has been completely bypassed and a $19.99 game in the US is £19.99 in the UK which is closer to 30 bucks, reality being $19.99 is about £14.

  • KMetalmind

    I think it´s somehow funny how payPAL is available on NTSC USA only :DD

    I wish it comes to other regions over time.

  • I Yova I

    would be great if it was worlwide, I like using PayPal

  • Joergen8

    So let’s see, you use your bank (who charge for use) to store real money, who use VISA (who charge for use) to run your credit card, so you can then use PayPal to handle your credit card (who charge for use) to buy mickey mouse money from Microsoft (who charge for use).. The more middle-men the merrier? JEEEEZ!

    I wish the 360 just had a bill slot to feed it money, would save a lot of overhead. You people think these companies operate for free?

    I wouldnt be complaining if I got the USA pricing but still.. what happened to good old cash transactions. More like trashcansucktions now.

  • EliteSinX

    OMG do u guys know how much money MS looses cuz they dont make MS points available to other countries with their CC? i have to order a frigging MS points card and have to pay taxes and other stuff, is not much and dont get me wrong im not cheap but goddamnit! having to pay 23-25dlrs for something that other ppl can buy for 19.99 is VERY annoying!

  • Thief000

    I hope this gets around the globe fast. Paypal is a global affaire so this shouldn’t be a problem.

  • Wizard2k

    Great News! When comes in UE?


    very cool!

  • wolfzero01

    while this may be a better idea than having your cc linked to you Live account, considering the some of the scams that occur thru PayPal (I’ve received a few emails stating the the order I place using my PayPal account has been approved, even though I don’t have any funds in my account at the moment) I’d rather stick to using points cards.

    I feel bad for those not in the US with regards to Games on Demand pricing, who in their right mind would pay those prices when it is easier & cheaper to go find a hard copy of the game

  • PorkTree

    Hey Major, is it me, or do you guys not understand how the whole digital distribution thing should work? Seems like physical copies should cost more, not less?
    Game XBLM Amazon Newegg
    Assassin’s Creed $29.99 $27.99 $27.99 $28.43
    BioShock $29.99 $29.99 $19.99 $18.99
    Call of Duty 2 $29.99 $34.99 $14.99 $28.27
    LEGO Star Wars: TCS $29.99 $19.99 $19.99 $19.99
    Mass Effect $19.99 $19.99 $19.99 $19.49
    Need For Speed: Carbon $19.99 $24.69 $19.99 $28.27
    Oblivion $29.99
    Oblivion: GOTY $29.99 $27.99 $27.98
    Sonic The Hedgehog $19.99 $ 7.50 $19.99 $ 9.00
    Viva Piñata $19.99 $ 9.99 $ 9.99 $ 9.99
    BioShock & Oblivion $59.98 $36.99 $36.99 $36.99


    I tried to buy some points but it wouldnt let me, added the paypal account fine but as soon that i select a point pack it ends up in an error.

  • SnoopDope

    Calm down non-US people, I’m sure this feature will come to you just a few weeks after it becomes available in Morocco.

  • x8Sharrock3x

    I tried to do the Paypal thing but it says try later 40001

  • HighDef Edition

    @ bknight2k

    Now way Microsoft or Sony for that matter can sell downloadable games cheaper than retail. Why? There are contracts inplace that prevents such things.

  • GIZmoto

    LOL @ all the CONSTENT “only in the USA” comments. But seriously I agree 100% with you guys, it’s only funny if your on the benifeiting end (USA members). If it was myself who was contantly getting left out of stuff I would probally go offline all together.

  • a peeking duck

    You know it’s easier and quicker for Microsoft to hammer out a deal with a US company for US users than it is for other regions, right? It’s not just Microsoft going “Oh ho ho ho! Those millions of non-US users DESERVE _not_ to have this!!!! *belly laugh* *thunder and lightning* MAY THEY SUFFER!!!! *signs contract with eBay using the blood of a virgin*”

  • SonicSamZ

    No Canada? :(

  • Jax Demon

    So glad it’s not in the UK, Paypal are one of the worst companies to use for money, Idiots will charge your card and still keep charging your card by mistake, And when it comes to getting money bak you can forget it.

  • xxFrankBlackxx

    The website to add your paypal info to is painfully slow. Also I get a error message when trying to add my paypal.

  • Joergen8

    PorkTree: I’m shocked by those prices, positively! I thought they’d go near launch retail prices. Though I’m forgetting that I havent seen my local pricing yet (no full games nor community games available here!), so I’m expecting at least near USD launch prices in €. Plus, if they somehow poll this pricing data off the local market, they’ll end up with launch prices since 99% of retailers are small and 99% of games havent moved off shelves since they’re turd.

    I’ll just keep getting my games from then. Half price, free delivery.


    buy 2000MSP from the Marketplace for £17.00, OR,
    buy 2100MSP from the internet for £14.00/15.00…..

    decisions, decisions.

  • Grunt

    Cool cant wait till canada can have this

  • sybeerian

    just tried it and it says try again later or try contacting xbox support.if i have to contact them to get it to work for get it.

  • Major Risk

    me too.

  • LordWill0722

    yeh – very weird this doesn’t come to canada either. everyone in canada uses paypal for ebay and ordering things – hopefully soon thou, within a couple months soon, not a year down the road…

  • JUZtin jOy

    I just now went to to get some microsoft points for getting the splosion man but every time i try to use my PayPal account i get this error.

    This action cannot be performed at this time. Please try again later. For more information, go to

    Hey Major Can you Help Me….


    I’m also getting errors. I have been since it’s “launch.” 40001 error, which, if I remember correctly is a SQL cache problem. It’s been a while.

    Looks like more testing should have occurred before announcing it (or better information on when it’s actually live).

  • JUZtin jOy

    Is there any other way to get splosion man. Like a card or something else. PayPal is still not working. Can some of you guys confirm that it is an error with paypal and not with my account.


    Juztin, there are quite a few people here, including myself, reporting an error.

  • Major Risk

    Just wait it out I guess, they will figure out the problem soon I sure

  • x8Sharrock3x

    Major Nelson updates this site every 2 days or 3.When this site started it updated every day. I guess money well change someone or make them lazy??

  • JUZtin jOy

    Actually i am sure that he has not become lazy. He is our only representative to Microsoft. Because of which we are able to ge access to xbox live previews and other exciting offers.

  • erichsouza76

    Now that’s just great…
    First of all, my account is registered for USA since I were living at NC at the time but the Xbox Live isn’t still available at my country (Brazil). Even the console being sold as an official Microsoft product with all the appliable taxes, Microsoft just doesn’t care at all to provide the service over here so everyone getting a new 360 have to do this in order to use Xbox Live.
    And just after this PayPal thing worked, I’ve linked my PayPal account and bought some MSP with no problems.
    But after hearing some other ppl complain, I’ve tried to purchase some more and what I find out? Can’t buy them anymore!
    Seriouslly guys? Do you really think it’s better to sell those crappy prepaid cards for a whole lot of code sellers on eBay and some other places instead of selling directly? And what the hell does it matter where my PayPal account is from?
    I do understand why some content is region protected due for a lot of copyright and also legal issues. But blocking this as well????C’mon!
    Xbox Live is an excellent service and I’m quite pleased with it but for management issues and other stuff, please keep the interns and monkeys of it because you can piss a lot of people with such small things.

  • Shin Magus BR

    My account is registered for the USA and I live in Brazil too…

    “This action cannot be performed at this time. Please try again later. For more information, go to”


    I would be willing to spend the US$ 12.50 for the alternate SF4 costumes if they let me… It’s over 200% that amount if I go for the 1600-point (excessive, since I only need 1000 points) game card over here, which I’m not happy with. :\


    Well, I live in the USA and I still can’t get it because of that error. It’s rather annoying, so screw them. I’m just gonna keep my money then.