What you need to create a PayPal account

You need an email address, a valid government ID, and either a bank account or debit card. PayPal will verify your identity using information from your ID and your financial institution, which takes a few minutes to a few hours. You do not need to be a U.S. citizen, but you do need a U.S. address and Social Security Number or Individual Taxpayer Identification Number (ITIN) to send money or receive payments.

If you only want to receive money from friends or family, you can skip the bank or card step and add it later. If you plan to send money, transfer funds out, or use PayPal for purchases, you will need at least one payment method on file before you can complete those actions.

Key Takeaways

  • You can create a PayPal account with just an email address, but you will need a bank account or debit card to send money or cash out.
  • PayPal verifies your identity using your government ID and your financial institution's records, which usually takes a few minutes to a few hours.
  • Personal accounts are free to create and receive money in, but sending money to friends costs nothing while sending to a business account or using certain features may charge a fee.
  • Once your account is active, you can link multiple bank accounts and cards, but each one must be verified separately.

Step 1: Go to PayPal and enter your email

Visit paypal.com and click "Sign Up" in the top right corner. You will see two account type options: Personal and Business. Choose Personal if you are sending money to friends, paying bills, or receiving payments from individuals. Choose Business if you plan to receive payments for goods or services you sell.

Enter your email address. This becomes your PayPal login. You can change it later, but you will need access to this email during setup because PayPal sends a confirmation link to it.

Step 2: Create a password and confirm your identity

Create a password at least 8 characters long. PayPal requires a mix of uppercase and lowercase letters, numbers, and symbols. Write it down or save it in a password manager—you will need it every time you log in.

Next, PayPal asks for your full name, date of birth, and address. Enter the information exactly as it appears on your government ID. If the name or address does not match your ID, verification will fail and you will have to start over. PayPal uses this information to check against public records and your financial institution's files.

Step 3: Add a bank account or debit card

PayPal offers two ways to link a payment method: instant verification or manual verification. Instant verification connects to your bank's system and confirms your account in seconds. Manual verification requires you to make two small deposits to your bank account (usually $0.01 and $0.02) and then enter the amounts PayPal sends you—this takes three to five business days.

If you choose instant verification, select your bank from the list and log in with your online banking credentials. PayPal does not store your username or password; it only reads your account information to confirm the account exists and matches your name. If your bank is not on the list, you can enter your routing number and account number manually, though this takes longer to verify.

For a debit card, enter the card number, expiration date, and CVV. PayPal verifies it immediately by charging a small amount (usually $0.01) and then refunding it within a few days.

Step 4: Verify your email address

PayPal sends a confirmation email to the address you provided. Open your email, find the message from PayPal, and click the verification link. If you do not see it within a few minutes, check your spam folder. Once you click the link, your email is confirmed and your account moves to the next stage.

If you did not receive an email after 10 minutes, return to PayPal, click "Resend confirmation email," and wait another few minutes. Do not create a second account with a different email—this can lock both accounts.

Step 5: Upload your ID and wait for final approval

PayPal asks you to photograph or scan your government ID—a driver's license, passport, or state ID card. Take a clear photo of the front and back. The image must show your full name, date of birth, and ID number. Blurry or cropped photos will be rejected.

Upload both images through the PayPal app or website. PayPal reviews your ID using automated tools and usually approves or denies your account within a few hours. If there is a problem—the photo is too dark, the name does not match, or the ID is expired—PayPal sends you an email explaining what went wrong and how to resubmit.

Once your account is approved, you can send and receive money immediately. Your account limits depend on your account age and history; new accounts often have lower sending limits that increase over time as you use the account.

What happens if verification fails

If PayPal cannot verify your identity, it sends you an email with the reason. The most common issues are a name mismatch, an expired ID, or an address that does not match your bank records. You can resubmit your ID or contact PayPal's support team to resolve the issue.

If your bank account or card fails verification, try a different payment method. Some banks take longer to connect to PayPal's system, and switching to a debit card or a different bank account often works. You can also choose manual verification (the two small deposits method) if instant verification is not working.

If your account is locked or suspended during setup, PayPal usually sends you instructions on how to unlock it. This is rare and usually happens only if PayPal detects suspicious activity or if your information does not match public records. Respond to PayPal's email with the information they request, and your account will be reviewed again.

Frequently Asked Questions

Can I use PayPal without a bank account?

You can receive money and hold it in your PayPal balance without a bank account. To cash out or send money, you will need to add a bank account or debit card. Some people use PayPal as a temporary holding place and withdraw to a card later, though this is slower than linking a bank account directly.

How long does it take to set up a PayPal account?

The entire process takes 10 to 20 minutes if you use instant verification with your bank. If you choose manual verification (the two small deposits method), the account is ready to use immediately, but you cannot withdraw money until the deposits clear, which takes three to five business days.

What if my name on my ID does not match my email?

Your PayPal account name must match your government ID exactly. Your email address does not have to match your legal name—it is just your login. If your ID says "Robert James Smith" but your email is "rsmith@email.com," that is fine. The name you enter during setup must match the ID.

Can I have more than one PayPal account?

PayPal allows one personal account per person, but you can have both a personal and a business account linked to the same email. Creating multiple personal accounts with different emails is against PayPal's terms and can result in all accounts being closed. If you need a business account, convert your personal account or create a separate business account instead.

Is there a fee to create a PayPal account?

Creating an account is free. Receiving money from friends or family is free. Sending money to another PayPal user is free if you send it as a personal transfer (not a goods or services payment). Sending money internationally, receiving payments for goods or services, or withdrawing to your bank account may have fees depending on the transaction type.