Pricing plans

DOCSCurrent

Last updated: Sept 23rd, 8:20pm

When you set up your subscription plan, you can choose from four different pricing models:

Fixed

Quantity, also known as user or seat-based

Volume-based

Tiered-based

Fixed-pricing plan

A fixed-pricing plan is a frequency-based subscription plan that charges customers a fixed amount at a fixed frequency.

Sample use cases:

Video or music streaming services that charge a monthly or yearly fee.

Gym or club membership.

Box subscriptions, such as grooming, clothing, beauty, and food.

Examples

Plan 1: $5 per month for a music streaming service

Plan 2: $100 per year for a gym membership

Sample request

The following sample request shows how to create a fixed pricing plan. Use this sample to adjust your code when you create a plan.

API endpoint used: Create plan

1curl -v –X POST https://api-m.sandbox.paypal.com/v1/billing/plans \
2  -H "PayPal-Auth-Assertion: AUTH-ASSERTION" \
3  -H "Accept: application/json" \
4  -H "Authorization: Bearer ACCESS-TOKEN" \
5  -H "Content-Type: application/json" \
6  -H "PayPal-Request-Id: PLAN-18062020-001" \
7  -d '{
8    "name": "Premium Music Plus",
9    "description": "A premium plan with music download feature",
10    "product_id": "PROD-5RN21878H3527870P",
11    "billing_cycles": [{
12        "frequency": {
13            "interval_unit": "MONTH",
14            "interval_count": 1
15        },
16        "tenure_type": "REGULAR",
17        "sequence": 1,
18        "total_cycles": 0,
19        "pricing_scheme": {
20            "fixed_price": {
21                "value": "5",
22                "currency_code": "USD"
23            }
24        }
25    }],
26    "payment_preferences": {
27        "auto_bill_outstanding": true,
28        "payment_failure_threshold": 1
29    }
30  }'

Quantity-based plan

A quantity-based pricing plan charges subscribers by the quantity of goods or services to which they subscribed.

Sample use cases:

Service company offers remote tech support to small companies.

A software company charges for the number of software licenses.

Pet store offers a dog food subscription that charges customers based on the number of bags.

Examples

Plan 1: $5 per software license per month

Plan 2: $9 per dog food bag per week

During subscription creation, the subscriber chooses a quantity. That quantity determines the amount charged every regular billing cycle.

Subscription 1:
- A subscriber signs up for a plan of $5 per software license per month
- A subscriber requests 10 licenses when they sign up
- The net subscription price is 10 x 5 = $50 per month

Subscription 2:
- A subscriber signs up for a plan of $9 per food bag per week
- A subscriber requests 5 food bags when they sign up
- The net subscription price is 9 x 5 = $45 per week

Note: Subscribers can request an update to the quantity as things change. The new quantity and definition determine the new price that's applicable to subsequent billing cycles.

Sample request

The following sample request shows how to create a quantity-based pricing plan. Use this sample to adjust your code when you create a plan.

In this sample, the quantity_supported parameter indicates that this plan is a quantity-based plan.

API endpoint used: Create plan

1curl -v –X POST https://api-m.sandbox.paypal.com/v1/billing/plans \
2  -H "PayPal-Auth-Assertion: AUTH-ASSERTION" \
3  -H "Accept: application/json" \
4  -H "Authorization: Bearer ACCESS-TOKEN" \
5  -H "Content-Type: application/json" \
6  -H "PayPal-Request-Id: PLAN-18062020-001" \
7  -d '{
8    "name": "Classic treat",
9    "description": "500gm dog food per bag",
10    "product_id": "PROD-6DN21878H3529990P",
11    "billing_cycles": [{
12        "frequency": {
13            "interval_unit": "WEEK",
14            "interval_count": 1
15        },
16        "tenure_type": "REGULAR",
17        "sequence": 1,
18        "total_cycles": 0,
19        "pricing_scheme": {
20            "fixed_price": {
21                "value": "9",
22                "currency_code": "USD"
23            }
24        }
25    }],
26    "quantity_supported": true,
27    "payment_preferences": {
28        "auto_bill_outstanding": true,
29        "payment_failure_threshold": 1
30    }
31  }'

Volume-based plan

A volume-based pricing model defines the subscription's price based on the price per unit of the number of product units within a specified range.

Sample use cases:

Bulk SMS, email, and voice services

Bulk SAAS based platform charges for a given number of product licenses

Cloud based service platform charges for data storage based on volume

Examples

Plan 1

A merchant offers a volume-based monthly plan that provides software licenses to businesses using these defined fees:

Number of software licenses	Price per license (per month)
1-5	$15
6-10	$14
11-15	$13
16-20	$12
21 and beyond	$11

During subscription creation, the subscriber chooses a quantity. That quantity determines the amount charged every regular billing cycle.

Subscription 1
- A subscriber signs up for plan 1
- A subscriber requests 14 licenses when they sign up. The price is calculated based on 3rd tier (11-15)
- The net subscription price is 14 x 13 = $182 per month

Subscription 2
- A subscriber signs up for plan 1
- A subscriber requests 25 licenses when they sign up. The price is calculated based on 5th tier (21 and beyond)
- The net subscription price is 25 x 11 = $275 per month

Plan 2

A merchant offers a volume-based monthly plan that provides tech support and assistance to relevant businesses with the using these defined fees:

Number of technicians (Tech Support)	Price per technician (per month)
1-10	$30
11-20	$29
21-30	$28
31 and beyond	$27.5

Subscription 1
- A subscriber signs up for plan 2
- A subscriber requests 8 licenses when they sign up. The price is calculated based on 1st tier (1-10)
- The net subscription price is 8 x 30 = $240 per month

Subscription 2
- A subscriber signs up for plan 2
- A subscriber requests 25 licenses when they sign up. The price will be calculated based on 3rd tier (21-30)
- The net subscription price is 25 x 28 = $700 per month

Note: Subscribers can request an update to the quantity as things change. You can also customize the price for a subscriber or plan level at any time. The new quantity and definition determine the new price that's applicable to subsequent billing cycles.

Sample request

The following sample request shows how to create a volume-based pricing plan. Use this sample to adjust your code when you create a plan.

In this sample, the pricing_model and quantity_supported parameters indicate that this plan is a volume-based plan.

API endpoint used: Create plan

1curl -v –X POST https://api-m.sandbox.paypal.com/v1/billing/plans \
2  -H "PayPal-Auth-Assertion: AUTH-ASSERTION" \
3  -H "Accept: application/json" \
4  -H "Authorization: Bearer ACCESS-TOKEN" \
5  -H "Content-Type: application/json" \
6  -H "PayPal-Request-Id: PLAN-18062020-001" \
7  -d '{
8    "name": "Standard Plan",
9    "description": "Volume based Software Licenses",
10    "product_id": "PROD-6DN21878H3529990P",
11    "billing_cycles": [{
12        "frequency": {
13            "interval_unit": "MONTH",
14            "interval_count": 1
15        },
16        "tenure_type": "REGULAR",
17        "sequence": 1,
18        "total_cycles": 0,
19        "pricing_scheme": {
20            "pricing_model": "VOLUME",
21            "tiers": [
22                {
23                    "starting_quantity": "1",
24                    "ending_quantity": "5",
25                    "amount": {
26                        "value": "15",
27                        "currency_code": "USD"
28                    }
29                },
30                {
31                    "starting_quantity": "6",
32                    "ending_quantity": "10",
33                    "amount": {
34                        "value": "14",
35                        "currency_code": "USD"
36                    }
37                },
38                {
39                    "starting_quantity": "11",
40                    "ending_quantity": "15",
41                    "amount": {
42                        "value": "13",
43                        "currency_code": "USD"
44                    }
45                },
46                {
47                    "starting_quantity": "16",
48                    "ending_quantity": "20",
49                    "amount": {
50                        "value": "12",
51                        "currency_code": "USD"
52                    }
53                },
54                {
55                    "starting_quantity": "21",
56                    "amount": {
57                        "value": "11",
58                        "currency_code": "USD"
59                    }
60                }
61            ]
62        }
63    }],
64    "quantity_supported": true,
65    "payment_preferences": {
66        "auto_bill_outstanding": true,
67        "payment_failure_threshold": 1
68    }
69  }'

Tiered-based plan

A tier-based pricing model defines the subscription's price and any price changes based on the quantity of product units within a tier.

Sample use cases:

Bulk SMS, email, and voice services

SAAS charges for a given number of product licenses priced differently across tiers

Cloud based service platform changes for data storage priced differently across tiers

Examples

Plan 1

A merchant offers a tiered-based monthly plan that provides software licenses to businesses using these defined fees:

Number of software licenses	Price per license (per month)
1-5	$15
6-10	$14
11-15	$13
16-20	$12
21 and beyond	$11

During subscription creation, the subscriber chooses a quantity. That quantity determines the amount charged every regular billing cycle.

Subscription 1
- A subscriber signs up for plan 1
- A subscriber requests 14 licenses when they sign up
- The net subscription price is 5 x 15 + 5 x 14 + 4 x 13 = $197 per month

Subscription 2
- A subscriber signs up for Plan 1
- A subscriber requests 25 licenses when they sign up
- The net subscription price is 5 x 15 + 5 x 14 + 5 x 13 + 5 x 12 + 5 x 11 = $325 per month

Plan 2

A merchant offers a tiered-based monthly plan that provides tech support and assistance to relevant businesses with the following fee schedule:

Number of technicians (Tech Support)	Price per technician (per month)
1-10	$30
11-20	$29
21-30	$28
31 and beyond	$27.5

During subscription creation, the subscriber chooses a quantity. That quantity determines the amount charged every regular billing cycle.

Subscription 1
- A subscriber signs up for Plan 2
- A subscriber requests 14 licenses when they sign up
- The net subscription price is 10 x 30 + 4 x 29 = $416 per month

Subscription 2
- A subscriber signs up for Plan 2
- A subscriber requests 25 licenses when they sign up
- The net subscription price is 10 x 30 + 10 x 29 + 5 x 28 = $730 per month

Sample request

The following sample request shows how to create a tiered-based pricing plan. Use this sample to adjust your code when you create a plan.

In this sample, the pricing_model and quantity_supported parameters indicate that this plan is a tiered-based plan.

API endpoint used: Create plan

1curl -v –X POST https://api-m.sandbox.paypal.com/v1/billing/plans \
2  -H "PayPal-Auth-Assertion: AUTH-ASSERTION" \
3  -H "Accept: application/json" \
4  -H "Authorization: Bearer ACCESS-TOKEN" \
5  -H "Content-Type: application/json" \
6  -H "PayPal-Request-Id: PLAN-18062020-001" \
7  -d '{
8    "name": "Platinum Plan",
9    "description": "Tiered based pricing for technical support",
10    "product_id": "PROD-6DN21878H3529990P",
11    "billing_cycles": [{
12        "frequency": {
13            "interval_unit": "MONTH",
14            "interval_count": 1
15        },
16        "tenure_type": "REGULAR",
17        "sequence": 1,
18        "total_cycles": 0,
19        "pricing_scheme": {
20            "pricing_model": "TIERED",
21            "tiers": [
22                {
23                    "starting_quantity": "1",
24                    "ending_quantity": "10",
25                    "amount": {
26                        "value": "30",
27                        "currency_code": "USD"
28                    }
29                },
30                {
31                    "starting_quantity": 11",
32                    "ending_quantity": "20",
33                    "amount": {
34                        "value": "29",
35                        "currency_code": "USD"
36                    }
37                },
38                {
39                    "starting_quantity": "21",
40                    "ending_quantity": "30",
41                    "amount": {
42                        "value": "28",
43                        "currency_code": "USD"
44                    }
45                },
46                {
47                    "starting_quantity": "31",
48                    "amount": {
49                        "value": "27.5",
50                        "currency_code": "USD"
51                    }
52                }
53            ]
54        }
55    }],
56    "quantity_supported": true,
57    "payment_preferences": {
58        "auto_bill_outstanding": true,
59        "payment_failure_threshold": 1
60    }
61  }'
62
63## See also
64
65* Use the [Plans resource group](/docs/api/subscriptions/v1/#plans) of the Subscriptions REST API to manage plans, including: updating pricing, updating the plan, and deactivating the plan.
66
67
68export const _frontmatter = {"title":"Pricing plans","contentType":"Docs","keywords":"subscriptions, pricing plans","productStatus":"Current","apiVersion":"v1","date":"2022-04-06T23:06:12.000Z"}