What you need to create a PayPal account

You can create a PayPal account in about 10 minutes using a computer or phone. You will need a valid email address, a password you create, and either a debit card, credit card, or bank account number to link to your account. PayPal does not charge you to open an account—the fee comes later, only when you send money or receive a payment for goods or services.

PayPal offers two account types: Personal and Business. A Personal account is what most people use for peer-to-peer transfers, online shopping, and receiving money from friends. A Business account adds invoicing tools and is designed for people who sell items or services regularly. You can start with Personal and upgrade later if you need to.

Key Takeaways

  • You need an email address, a password, and one payment method (debit card, credit card, or bank account) to open a PayPal account.
  • The account itself is free; PayPal charges fees only when you send money as a payment or receive money for goods or services.
  • Personal accounts are best for sending money to friends and making online purchases; Business accounts add invoicing and are for regular sellers.
  • PayPal will ask you to confirm your email address and may ask for your legal name, address, and phone number during setup.

Step 1: Go to PayPal.com and click Sign Up

Open PayPal.com in your web browser or download the PayPal app on your phone. On the homepage, look for the "Sign Up" button, usually in the top right corner or near the center of the page. Click it.

PayPal will ask you to choose between a Personal account and a Business account. For peer-to-peer transfers and everyday use, select Personal. You can change this later if needed.

Step 2: Enter your email and create a password

Type in the email address you want to use for your PayPal account. This is the address people will use to send you money, so choose one you check regularly. PayPal will send a confirmation link to this address, so make sure it is correct.

Create a password that is at least 8 characters long and includes uppercase letters, lowercase letters, numbers, and a symbol (like ! or @). PayPal will tell you if your password is strong enough. Write it down or save it in a password manager—you will need it every time you log in.

Step 3: Confirm your email address

PayPal will send an email to the address you provided. Open your email inbox and look for a message from PayPal with the subject line "Confirm your email address" or similar. Click the link inside the email or copy the code and paste it into PayPal's confirmation page.

If you do not see the email within a few minutes, check your spam or junk folder. PayPal emails sometimes get filtered there by mistake. Once you confirm your email, you can move to the next step.

Step 4: Add your payment method

PayPal will ask you to link a debit card, credit card, or bank account. You can use any of these three—the choice depends on what you have available and what you plan to use PayPal for. If you link a bank account, PayPal will make two small deposits (usually under $1 each) to verify it is yours; you will need to confirm the amounts to complete the link.

If you link a debit or credit card, PayPal may ask for your card number, expiration date, and CVV (the three-digit code on the back). Your card information is encrypted and PayPal does not store the full number on their servers. You can add multiple payment methods later if you want options.

Step 5: Verify your identity information

PayPal will ask for your legal first and last name, your date of birth, your street address, and your phone number. This information must match what your bank or card issuer has on file. PayPal uses this to verify your identity and prevent fraud.

Once you enter this information and review PayPal's User Agreement and Privacy Policy, your account is active. You can now send money to friends, receive payments, or make purchases online. PayPal may ask you to confirm additional details later, especially if you plan to receive large amounts of money or use your account frequently.

What happens after you create your account

Your account is ready to use immediately, but some features may have limits at first. For example, PayPal may cap how much money you can send or receive in your first 30 days while they monitor your account for fraud. These limits usually lift automatically once your account has been active for a month and you have not had any problems.

If you plan to receive money regularly—for example, if friends will pay you back for shared expenses—you can share your PayPal.me link with them. This is a personalized URL (like paypal.me/yourname) that lets people send you money without needing your email address. You create this link in your account settings under "Profile."

Frequently Asked Questions

Can I create a PayPal account without a credit card or bank account?

No. PayPal requires at least one payment method linked to your account before you can use it. You can use a debit card, credit card, or bank account. If you do not have any of these, you will not be able to open a PayPal account.

How long does it take to verify my bank account?

If you link a bank account, PayPal deposits two small amounts (usually $0.01 to $0.99 each) and asks you to confirm them. This can take 1 to 3 business days. Once you confirm the amounts, your bank account is verified and you can use it to send or receive money.

What if I forget my PayPal password?

Go to PayPal.com and click "Log In." Then click "Having trouble logging in?" and select "I forgot my password." PayPal will send a reset link to your email address. Click the link, create a new password, and log in. Make sure you save the new password somewhere safe.

Can I use PayPal if I am under 18?

No. PayPal requires you to be at least 18 years old to open an account. If you are younger, ask a parent or guardian to open an account and manage it for you, or wait until you turn 18.

Do I need a separate PayPal account for buying things online?

No. One Personal PayPal account works for sending money to friends, receiving money, and checking out on websites that accept PayPal. You do not need multiple accounts unless you want to keep personal and business finances separate.