Yes, Magento supports PayPal

Ebay owns Magento and PayPal, therefore as a community, we've seen the PayPal integration receive a lot of attention from Magento. One of the most common questions that I've heard from the community is "Which PayPal option do I use??" Here's a list of the PayPal Integrations that are available by default. I will attempt to give you a quick explanation of each and the reason that you would most likely choose the option described.

PayPal All-in-One Payment Solutions

PayPal All-in-one SolutionsAccept and process credit cards and PayPal payments. The PayPal All-In-One Solutions allow you to accept credit cards and allow your customers to checkout right on your website. Here's a Complete breakdown of PayPal Fees for this service. With PayPal All-in-One you have the following features included:

  1. Keep your buyer on your site through checkout
  2. Optimized mobile checkout experience
  3. Accept PayPal payments
  4. Accept credit and debit cards including multicurrency processing in 6 currencies*
  5. Accept PayPal payments in 23 currencies from 203 countries and markets
  6. Accept PayPal Credit payments (U.S. only)
  7. Payment Gateway
  8. Options to simplify PCI compliance
  9. Virtual Terminal to accept phone payments
Payments Advanced (Includes Express Checkout)

Accept payments with a PCI-compliant checkout that keeps customers on your site. PayPal Advanced Payments is going to be your closest comparison to a service like Authorize.net with your own Merchant Account. You will receive all of the functionality of Payments standard, plus more. There is a monthly cost associated with this service, normally $5 per month. There is also an application process to get a merchant account through PayPal.

https://www.paypalobjects.com/webstatic/mktg/merchant/videos/pp-online-payments-web.mp4

Payments Pro (Includes Express Checkout)

Accept payments with a completely customizable checkout. You will receive all of the functionality of Payments standard, plus more. There is a monthly cost associated with this service, normally $30 per month. There is also an application process to get a merchant account through PayPal. Here's a complete comparison of Payments Pro to Payments Standard.

Payments Standard

Accept credit card and PayPal payments securely. Users are redirected to a PayPal checkout page to finalize their order and then redirected to your website.

  • Accept Credit Cards right on your website
  • Accept Credit Cards on your mobile device
  • Send invoices online to your customers
  • Get paid on eBay

PayPal Payment Gateways

Payflow Pro (Includes Express Checkout)

Connect your merchant account with a fully customizable gateway that lets customers pay without leaving your site.

Payflow Link (Includes Express Checkout)

Connect your merchant account with a PCI-compliant gateway that lets customers pay without leaving your site.

PayPal Express Checkout

Express Checkout

Add PayPal as an additional payment method to your checkout page.