PayPal has recently released a new API which should replace the old API. The new API is based on a REST approach.
As fare as I can see there is no option to define a callback URL. In the old API the parameter was 'notify_url'. I use the following documentation: https://developer.paypal.com/webapps/developer/docs/api/#create-a-payment
Is there a parameter in the new REST API which allows to define a notification URL?
Unfortunately, the REST API is still pretty far behind the classic API's with all of the features they provide. To my knowledge, notify_url/NOTIFYURL simply aren't included in the REST API yet.
That said, if you have IPN configured in your PayPal account profile the REST API calls should still trigger them. It's just that you can't override the value there with a custom one using notify like you're talking about.
The classic API's aren't going away, though. You can still use them just fine.
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