You can send money to someone without a PayPal account, but they will need to create one to claim it
PayPal does not let you transfer money directly to a non-user. If you try to send money to an email address that is not linked to a PayPal account, PayPal will hold the payment and send the recipient an email invitation. The recipient must then create a PayPal account and claim the money within 30 days, or the payment returns to you automatically.
This means the person you want to pay does not need to have an account before you send the money—but they do need to set one up to receive it. If they do not want to create a PayPal account, you will need to use a different payment method.
Key Takeaways
- PayPal holds payments sent to non-account holders for 30 days while it waits for the recipient to create an account and claim the money.
- If the recipient does not claim the payment within 30 days, the money returns to your PayPal balance automatically.
- The recipient can create a PayPal account for free using just an email address and basic personal information.
- If the recipient refuses to use PayPal, you can use Venmo, Square Cash, Google Pay, or a direct bank transfer instead.
What happens when you send money to a non-PayPal email
When you enter an email address that is not registered with PayPal, the system will warn you that the recipient does not have a PayPal account. You can choose to send the payment anyway. PayPal then sends an email to that address with a link inviting the person to create an account and claim the money.
The recipient has 30 calendar days from the date you send the payment to open the email, create a PayPal account, and claim the funds. During this time, the money sits in PayPal's system—it is not in your account and it is not in theirs. After 30 days, if no one has claimed it, PayPal returns the money to your PayPal balance as a credit.
This process works the same whether you are sending money as a personal transfer or as a payment for goods or services. The recipient will see the payment type in the claim email, which matters if they need to know whether to report it as income.
How the recipient creates an account and claims the money
Creating a PayPal account takes about five minutes. The recipient needs an email address, a phone number, and basic personal information (name, date of birth, address). They do not need a bank account or credit card to create the account—those can be added later if they want to send money themselves.
Once the account is created, the recipient can log in and look for the payment notification. PayPal will also send a separate email with a link to claim the payment directly. Clicking that link takes them to a page where they can confirm they want to accept the money. Once accepted, the funds appear in their PayPal balance immediately.
The recipient can then withdraw the money to a bank account (which takes one to three business days) or use it to make purchases through PayPal. They do not have to withdraw it right away.
What to do if the recipient does not want a PayPal account
If the person you want to pay refuses to create a PayPal account, you have several alternatives. Venmo works similarly to PayPal but is designed for peer-to-peer transfers and is owned by PayPal. The recipient still needs an account, but setup is faster and the app is simpler to use. Square Cash (now called Cash App) also requires the recipient to have an account, but they can sign up through the app in under a minute.
Google Pay lets you send money to a phone number or email address without the recipient having an account first. The money sits in Google Pay's system for up to 72 hours while Google sends them a notification. They can then claim it by creating a Google account or linking an existing one. This is faster than PayPal's 30-day window.
If you both have bank accounts at the same bank, you can often transfer money for free using the bank's own app or website—no third party needed. If you are at different banks, ACH transfer (also called a bank transfer) is free and takes one to three business days. You will need the recipient's routing number and account number, which they can find on a check or by logging into their bank.
Fees and limits when sending to a non-account holder
PayPal does not charge a fee to send money to a personal email address as a personal transfer. If you send it as a payment for goods or services, PayPal charges a fee (usually 2.2% plus $0.30 in the United States), but this applies whether the recipient has an account or not.
There is no limit on how much you can send to a non-account holder, but your own account limits apply. If you are a new PayPal user, you may have a daily or monthly sending limit. Check your account settings under "Limits" to see what applies to you. The limit does not change based on whether the recipient has an account.
What happens if the recipient never claims the payment
If 30 days pass and the recipient has not created an account or claimed the money, PayPal automatically returns the funds to your PayPal balance. You will receive an email notification that the payment was unclaimed and reversed. The money is then available for you to spend, transfer, or withdraw.
If you want to try sending the money again, you can do so immediately. You might also want to contact the recipient directly to confirm they received the PayPal email, since it sometimes lands in spam folders. If they still do not want to claim it, use one of the alternative payment methods listed above.
Frequently Asked Questions
Can I send money to someone's phone number instead of email?
PayPal requires an email address to send money. If you only have the recipient's phone number, you can ask them for their email address, or you can use Venmo or Cash App instead, both of which accept phone numbers for transfers.
Does the recipient get charged a fee to claim the money?
No. PayPal does not charge the recipient to create an account or to claim a payment sent to them. If they later withdraw the money to a bank account, there is no fee for that either.
What if the email address I send to is wrong?
PayPal will send the invitation email to the address you entered. If it is wrong, the recipient will never receive it and the payment will be returned to you after 30 days. Double-check the email address before you send.
Can I cancel a payment I sent to a non-account holder?
Yes. Before the recipient claims the payment, you can cancel it through your PayPal transaction history. Click the payment, select "Cancel," and choose your reason. The money returns to your account immediately. Once the recipient claims it, you cannot cancel it.