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


  • LawdaddyCO

    Sounds good to me. I have a bunch of money on Paypal to use and I refuse to use my credit card on live.

  • Just2Lazzzy

    Sweet. Now I can buy all the US good stuff. Not on the “UK xbox live accounts”

  • Exu

    Good move, now hurry up and roll this (and Amazon arcade codes) out to the UK and other regions.

  • aka Scratch

    that’s excellent news. it keeps getting better all the time

  • ZaZeeMan

    Major, you should probably add the “www.” to your link to the Accounts page. It’s getting a certificate fail because of the domain name failure. WWW. fixes it.

    Also, why does the rest of the world pay the same for these extra services, yet do not reap any of the benefits. I know some of it is for regional reasons but it is still frustrating. Especially money coming in from outside of the USA go towards infrastructure upgrades for services we don’t receive. Sorry for the rant but I always feel kind of ripped off.

  • Snookrt

    I already used PayPal. Using the PayPal debit card you get cash back, makes for even better deals.

  • Raz 360

    And WHEN will this be available in other countries, most notably the United Kingdom? Or is this just more BS where America gets everything good?

  • Dman0692

    i love the xbox 360 games on demand take regular money and i just bought the skateboard for my avatar

  • Major Nelson

    Thanks ZaZeeMan….I added www!

  • GBOvenom

    hmmm any idea if this is gonna be available to the uk???

  • Matte G

    Any idea when this is coming to the UK?

    This would be a useful feature for me because I have a debit card so can’t hook it up to my Xbox.

  • Chotu

    Major, who should we contact if we’d like this service in our country? Microsoft or PayPal?

  • erichsouza76

    Just great news! And it worked like a charm!

  • Chitwood7412

    Sure wish I could just buy stuff straight from LIVE marketplace, other then wasting money with MS “points system”, I would buy more stuff if I knew that I only had pay $10 other then $12 and have 200 points left that I can’t do much with.

  • Rossa AU

    Another thing Americans get first….lol

    On the other hand i will be shocked enough if the whole pay via Direct Debit and Credit Card for GoD thing even makes it to AUS, so not shocked at all by this :P

    Still, can’t wait for this paypal method to hit AUS :)

  • GuZ1977

    349 SEK (US $48) for the Games on Demand in Sweden, some of them are almost 4 years old by now, this must be some kind of joke?!?

  • DeadOne Walking

    This just made it easier to get points now. Sweet!

  • GuZ1977

    …and all of them can be had for significantly less if bought in physical form…


    Aww, just the U.S.?


  • Mikro

    I don’t really like pay pal they lost my trust back when they started stealing my money out of my checking account I’ll never use pay pal again.

  • r3dreck


  • Number 905

    I take it this has to be done with a linked credit card or PayPal balance?

  • NoTaxiForYou

    yet again CANADA get screwed outta things. we are freakin attached to the pUSA so why can i not use my paypal? i think microsoft need to reevaluate thier business practices… alienating a huge market like this is absolutly retarded and i think its time to buy a ps3 atleast when i get raped on prices i accualy know what im paying…

  • Epic Shotgun

    Hurry and make this possible for Canada also please and thanks.

  • Jervaughn

    finally! i love you xbox staff <3

  • SumHydroponic

    thats great Major, but why are the prices so high for the X360 Games on Demand?

  • Rossa AU

    @NoTaxiForYou – Your not kidding mate……after the recent release of a few Games on Demand games the prices are so high for us.
    Mass Effect on the USMP is $19.99
    Mass Effect on the AUMP is $99.99
    $20 AUS right now is about $25-26….So they want us to pay $100 when the US gets it for 1/4 the price……wake up MS…..not all coutries are stupid and easy to fool lol


    Yes yes yes yes, Thank You!

  • Cumore

    Please bring this to Canada.. <3

  • Enkeixpress

    I would love to see this being implemented for the UK too sometime in the future.

    Thanks Major

  • XandizitxU

    Major I cant connect to live via xbox, anyone had that problem too?

  • Hawaiian c

    i dont think this good in some ways major i think the xbox bosses need to rethink this paypal is known for loop holes….. unless MS is willing to deal all its legal issues that come up with

    to me i dont think its safe to have money transfer corporation have access to mp someone could make false account and man ms guys going to sove the issue on your own and o have shets loads of paper work… im just saying.. its a gamers world out there and some gamers arent afraid to mess around out the ant i know some say paypal is one of there toys…. im just saying…

  • bknight2k

    Hope this spreads to other countries

  • Shonk

    This is a worse idea than the cc one

    atleast if users get theyr account jacked
    they can claim with the cc

    if your account gets jacked and they add funds from paypal
    and you get the money back from reversing the cc payment to paypal
    they will hound you until the end of time

    we need to be able to add funds to the account without having to have the paypal
    account asociated

    I got ripped off selling a mobile phone in 2005
    the user said he didnt receive it
    even though i provided proof of delvery to paypal
    and a link to him reselling it on ebay
    they refunded him

    i appealed and won but his account was empty by then ofc
    luckily seeing the way the wind was blowing
    i removed my direct debit payment from my paypal account
    before they could try taking it from me

    paypal have hounded me for 4 years solid for that money
    even though its not my fault

    the moral of the story is
    i would use a cc before asociating paypal to my xbox

    its a nice idea but paypal are dodgy at best

  • bknight2k

    @Rossa AU

    Not kidding since the highest price you pay for a new disc version is $49.95.
    Other games seem to be retail but $100 for 2 year old game you cant be serious.

  • Shonk

    @Rossa AU
    its the same sort of thing in the uk
    but no where near as bad

    $19.99 us games

    so $34 a game


    the best bit is all the games can be got for £5 at retail
    this is going to bomb worse than xbox origonals
    unless they sort the rip off the rest of the world policy
    the games are already overpriced for wht they are compared to retail

  • bknight2k

    Honestly I can not see Games on Demand working unless they are cheaper than retail, After all there is less cost.

  • Potentialflip

    Great job with partnering with PayPal. Still not a fan of MS points but this beats having to use your credit card.

  • ZaZeeMan

    Glad to help! But is there some kind ETA on Canadian PayPal? I know this is likely beyond Microsoft’s control, amongst the Netflix stuff, and just causes some frustration to the whiny “international” crowd when we pay the same price as everyone else. Sorry to dump this on you but you are our only voice. :)

  • Capt Moore

    I have used paypal when I have had to and never had a problem. That being said, I am always worried using them vs a credit card. Under federal law, if you get unauthorized charges and dispute them (within 60 days I believe) the maximum you have to pay is $50. Paypal, they will simply try to take it out of any payment method they know about. No specific federal consumer protection laws exist for paypal that I am aware of.

    They even have a web site with horror stories called!

    In order to do instant transfers and other features, you have to be verified, which means you have to have both a bank account and a credit card on file with paypal. Being linked to your bank account, you could have way more serious issue (overdraft fees, less federal protection) vs having the same amount charged to a credit card.

    That being said, they are the only big player for online payments, so most of us will use will use Paypal at some point, so it makes sense for Microsoft to accept it as well. I still see prepaid point/subscription cards or a real credit card as a much more secure option for consumers however.

  • Anonymous

    thank you for games on demand

    I LOVE THE BIOWARE CONVERSION 19.99$=29.99€ are you kidding us ?

    on my favorite web shop mass effect + bonus dic + shipping = 23.49€

    i wanted to buy this one if it was 19.99€ but I won’t 19.99$=28.73€

  • Analogue

    Wow, why US only ?

  • ChargingMuffin

    Yet more prove Microsoft only care about the US. PayPal could be easily be made available anywhere.

  • StammyFi

    Games on Demand prices are ridiculous and this “US only” thing is as ridiculous. Thanks for nothing MS.


    Any idea when this is coming to the Italy?

  • zeDuffMan

    Bring to UK asap.

  • Sneeches

    why not avail in other countries??? I’d love to use my paypal to pay for MS Points…ahh well.

  • Deadly Moves

    Great, but why is it only for the US?
    many of us in the UK would like and use this new feature. please sort em out major

  • BMF Irish ace

    oh god again US only kind of get sick of that