I have found some info on the following page: 
http://www.fortytwo.gr/blog/14/Using-Paypal-with-Rails

However at some point, the writer creates a Crypto42 module which 
encrypts the data for the button, but this defeats the purpose of using 
ActiveMerchant. Doesn't AM ship with a way to encrypt the button?

AM has all the code necessary to handle the IPN so that's not a problem, 
but I don't understand how to create an encrypted button with AM.
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