paypal webhook notification not received - sandbox mode

Question

I'm trying to get notified via webhooks when a simple payment is made, however I don't receive any request from paypal on the specified URL. Here is what I've done:

1. I have 2 sandbox accounts: Facilitator and Buyer
2. Create an app (sanbox mode) for the facilitator account
3. Add a webhook URL in that app
4. Login into sanbox.paypal.com with the sandbox facilitator username and password
5. Generate a buy now button with a test product
6. Paste the button code on my page and make a purchase with the sanbox Buyer account

In developer dashboard the payment is received if I go to Sandbox -> Notifications: "Notification of Payment Received from test buyer", but the webhook page on my server is not called. I know this because the php script creates a txt file every time the page is called. Also if I go to Developer Account -> Webhook Notifications and select the app I have this message: You don't have any events for the selected application

NOTE: If I add the URL in the webhook simulator everything works great.

Am I doing something wrong? Do I have to connect the app with the buy now button?

Thanks

Answer 1

Webhooks is only used for REST payments. However for Paypal buttons created in PP account, you need to use Paypal IPN. Here is the guide for IPN and IPN script for your reference.