What you need to create a PayPal account

You can create a PayPal account in about five minutes with an email address, a password, and either a debit card, credit card, or bank account number. PayPal does not charge you to open an account. You will need to verify your email address before you can send or receive money, and you will need to link a payment method before you can make your first transaction.

PayPal offers two account types: Personal and Business. A Personal account is for individual money transfers, online shopping, and bill payments. A Business account is for people who sell goods or services and need to accept payments from customers. Most people start with Personal. You can upgrade to Business later if you need to.

You must be at least 18 years old to open an account. If you are under 18, a parent or guardian can open an account and add you as an authorized user, though this varies by country.

Key Takeaways

  • You need only an email address, a password, and a debit card, credit card, or bank account to create a PayPal account.
  • PayPal will send you a verification email; you must click the link in that email before you can send or receive money.
  • Linking a bank account takes one to two business days to confirm, while debit and credit cards confirm instantly.
  • You can add multiple payment methods to your account, and PayPal will use your preferred method by default when you make a purchase.
  • Personal accounts are free; Business accounts are also free to open, but PayPal charges a fee when you receive money from a customer.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right corner. You will see two options: Personal and Business. Select Personal unless you plan to accept payments from customers for goods or services.

Enter your email address and create a password. Your password must be at least eight characters long and include at least one letter and one number. PayPal will ask you to confirm your password by typing it again. Write down your password or save it in a password manager—you will need it every time you log in.

Enter your full name, date of birth, and address. PayPal uses this information to verify your identity and comply with financial regulations. The address you enter must match the address on your bank account or debit card.

Click "Agree and Create Account." PayPal will send a verification email to the address you provided. Open your email, find the message from PayPal, and click the "Confirm your email" link. If you do not see the email within a few minutes, check your spam or junk folder. Once you click the link, your email is verified and your account is active.

Linking a payment method

After you verify your email, PayPal will ask you to link a debit card, credit card, or bank account. This is how PayPal knows where to pull money from when you make a payment or send money to someone else.

If you link a debit or credit card, enter the card number, expiration date, and the three-digit security code on the back. PayPal will confirm the card instantly and you can use it right away.

If you link a bank account, enter your routing number and account number. You can find both on the bottom left of a check, or log into your bank's website to find them. PayPal will make two small deposits into your account—usually $0.01 and $0.02—within one to two business days. Once the deposits arrive, log back into PayPal, go to your wallet, and enter the two amounts to confirm the account. After confirmation, your bank account is linked and ready to use.

You can add multiple payment methods. PayPal will use whichever one you mark as your preferred method, but you can change which method you use for each transaction.

Verifying your identity

PayPal may ask you to verify your identity before you can send large amounts of money or receive payments. This is a security measure to prevent fraud. Verification usually means uploading a photo of your driver's license, passport, or state ID card.

If PayPal asks for verification, you will see a prompt in your account. Click it and follow the on-screen instructions to take a photo of your ID using your phone or computer camera. Make sure the photo is clear and shows all four corners of the ID. PayPal typically reviews identity verification within 24 hours.

Until you verify your identity, you may have limits on how much money you can send or receive. Once verified, these limits usually increase or disappear.

Setting up security features

After your account is active, add a phone number to your account. Go to Settings, click "Security," and enter your mobile number. PayPal will send you a code by text message to confirm the number. This phone number is used for two-factor authentication, which adds a layer of protection to your account.

Enable two-factor authentication in your Security settings. When you log in from a new device or browser, PayPal will send a code to your phone. You must enter that code to complete the login. This prevents someone else from accessing your account even if they know your password.

Consider setting up a security question and answer as well. This helps you recover your account if you forget your password. Choose a question only you can answer and write down the answer somewhere safe.

What happens after you sign up

Once your account is created and your payment method is linked, you can immediately send money to other PayPal users, pay for online purchases at stores that accept PayPal, and pay bills through PayPal's bill pay feature. You can also request money from friends or family—they will receive a notification and can pay you directly through PayPal.

If someone sends you money, it will appear in your PayPal balance. You can leave the money in PayPal, use it to make purchases, or transfer it back to your bank account. Transfers to your bank account usually take one to two business days.

PayPal sends you an email receipt for every transaction. Keep these receipts in case you need to dispute a charge or track your spending.

Frequently Asked Questions

Do I have to link a payment method right away?

No. You can create your account and verify your email without linking a payment method. However, you will not be able to send money or make purchases until you add a debit card, credit card, or bank account. You can add a payment method anytime after account creation.

What if I do not receive the verification email?

Check your spam, junk, or promotions folder—the email may have been filtered. If you still do not see it, log into your PayPal account, go to Settings, and click "Resend confirmation email." PayPal will send a new verification link. If the problem continues, contact PayPal support through the Help Center on their website.

Can I use PayPal without a bank account?

Yes. You can link a debit card or credit card instead of a bank account. Debit and credit cards work the same way as a bank account for sending money and making purchases. The main difference is that bank account transfers take one to two business days, while card transactions are instant.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and fraud detection to protect your information. Your actual bank account number is not shared with merchants when you make a purchase—PayPal acts as a middleman. If you are concerned, you can link only a debit card instead, or use PayPal's virtual card feature if your card issuer offers it.

Can I delete my PayPal account?

Yes. Go to Settings, click "Account," and scroll to "Close your account." PayPal will ask you to confirm. Once closed, you cannot reopen the same account, but you can create a new one with a different email address. Make sure you have no pending transactions or balance in your account before you close it.