What you need to create a PayPal account

You need three things to open a PayPal account: a valid email address, a password you create, and either a debit card, credit card, or bank account to link to it. PayPal will verify your identity by checking your name, address, and date of birth against what you provide. The whole process takes about 10 minutes on a computer or phone.

Your email address becomes your PayPal login, so use one you check regularly. If you plan to receive money from other people, you'll want to verify your bank account or card right away—PayPal won't let you withdraw funds until you do. If you're only sending money, you can skip this step for now, though you'll need a funded payment method on file.

Key Takeaways

  • You need an email address, a password, and a debit card, credit card, or bank account linked to your PayPal account before you can send or receive money.
  • PayPal verifies your identity using your name, address, and date of birth, and this check usually completes within minutes.
  • If you want to withdraw money to your bank account, you must verify that account by confirming two small deposits PayPal sends to it.
  • Two-factor authentication adds a security layer by requiring a code from your phone or email each time you log in from a new device.
  • Once your account is set up, you can send money to anyone with an email address, pay for online purchases, or request money from friends and family.

Step-by-step account creation

Go to paypal.com on your computer or open the PayPal app on your phone. Click "Sign Up" and choose whether you want a Personal or Business account. Personal accounts are for sending and receiving money from friends, family, and online sellers. Business accounts are for people who run a business or sell items regularly. Most people use Personal.

Enter your email address, create a password (at least 8 characters, with a mix of letters, numbers, and symbols), and provide your full name, address, and date of birth. PayPal will ask which country you're in—this determines which payment methods you can use and which currencies you can hold. Select your country and continue.

Choose how you want to fund your account. If you select a debit or credit card, enter the card number, expiration date, and CVV (the three-digit code on the back). If you select a bank account, you'll provide your routing number and account number. PayPal will run a verification check, which usually takes a few minutes but can take up to 24 hours.

Linking a bank account or card

Linking a payment method is how PayPal knows where to pull money from when you send a payment. You can link multiple cards and bank accounts to the same PayPal account. To add a new payment method after you've created your account, go to your Wallet (on the website) or tap the menu icon (on the app), then select "Manage Your Money" or "Wallet," and choose "Link a Card" or "Link a Bank Account."

If you link a debit or credit card, PayPal verifies it instantly by checking the card details against your bank's records. If you link a bank account, PayPal sends two small deposits (usually under $1 each) to that account within one to two business days. You'll see these deposits in your bank statement with a code. Go back to PayPal, enter those two codes, and your bank account is verified. Only then can you withdraw money from PayPal to that account.

Until your bank account is verified, you can still send money using a linked card, but you won't be able to move PayPal balance to your bank. This is PayPal's way of confirming you own the account.

Confirming your identity

PayPal's identity check happens automatically when you sign up. The system compares your name, address, and date of birth against public records and credit bureaus. Most accounts are confirmed instantly. If PayPal can't verify you automatically, it will ask you to upload a photo of your ID—a driver's license, passport, or national ID card. You'll take a photo with your phone or upload a file from your computer.

If PayPal requests additional information, respond within the timeframe they give you (usually 10 days). Delays in verification can prevent you from sending or receiving money, so don't ignore these requests. Once verified, you won't need to do this again unless you change your name, address, or other key details.

Setting up security features

After your account is created, turn on two-factor authentication to protect it from unauthorized access. Go to Settings (the gear icon), select "Security," and choose "Two-Factor Authentication." PayPal will ask whether you want to receive security codes by text message or through an authenticator app like Google Authenticator or Microsoft Authenticator. Text message is simpler; an authenticator app is more secure because it doesn't rely on your phone number being compromised.

Once two-factor authentication is on, every time you log in from a new device or browser, PayPal will send you a code. You'll enter that code to complete the login. This means even if someone has your password, they can't access your account without your phone or authenticator app.

You can also set a security question and answer, which PayPal may ask if you forget your password or if the system detects unusual activity. Choose a question only you can answer and avoid information that's easy to find online (like your high school name or pet's name).

What you can do once your account is active

Once your account is set up and verified, you can send money to anyone with an email address or phone number. They don't need a PayPal account—PayPal will send them a notification and a link to claim the money. If they create a PayPal account and link a bank account, the money lands there. If they don't create an account, PayPal holds the money for 30 days, and they can claim it by providing their bank details.

You can also use PayPal to pay for online purchases at stores that accept it. When you check out, select PayPal as your payment method, log in, and confirm the payment. PayPal doesn't share your card or bank details with the seller—only that the payment went through. This adds a layer of privacy and fraud protection.

If you want to request money from someone, go to "Request" (on the website or app), enter their email address or phone number, type the amount and reason, and send. They'll get a notification and can pay you directly through PayPal. Requested payments are useful for splitting rent, splitting a meal, or collecting money for a group gift.

Frequently Asked Questions

Do I need a bank account to create a PayPal account?

No. You can create an account with just a debit or credit card. However, if you want to withdraw money from PayPal to your bank, you'll need to link and verify a bank account. Until then, you can send money using your card, but you can't move your PayPal balance anywhere.

What happens if PayPal can't verify my identity?

PayPal will send you a message asking for a photo of your ID. Upload it within the timeframe they give you (usually 10 days). If you don't respond, your account may be limited or closed. If you've moved recently or your name has changed, update your information before uploading your ID so it matches.

Can I use PayPal if I don't have a smartphone?

Yes. You can create and use a PayPal account on a computer. However, if you set up two-factor authentication with text message codes, you'll need a phone to receive those codes. You can use an authenticator app instead if you have a smartphone, or stick with security questions if you prefer not to use two-factor authentication.

How long does it take to verify a bank account?

PayPal sends two small deposits to your bank account, which usually arrive within one to two business days. Once you see them in your bank statement, you enter the codes into PayPal, and verification is instant. The whole process typically takes three to five business days from start to finish.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and fraud detection to protect your information. Your bank account number is never shared with sellers or other PayPal users. If someone makes an unauthorized transaction, PayPal's buyer protection covers you for most cases. Still, use a strong password and turn on two-factor authentication to reduce the risk of someone accessing your account.