What you need to create a PayPal account
You need a valid email address, a phone number, and either a debit card, credit card, or bank account to link to PayPal. PayPal will verify your identity using information from your financial institution, so have that account number or card number ready. The whole process takes about 10 to 15 minutes.
If you are under 18, you cannot open a PayPal account in your own name. Some countries have different age requirements — PayPal's rules vary by location. Check PayPal's website for your specific country before you start.
You do not need a business license or tax ID to create a personal account. A business account requires additional verification steps and different documentation, but a personal account works for peer-to-peer transfers, online shopping, and receiving money from others.
Key Takeaways
- You need an email address, phone number, and at least one linked payment method — a debit card, credit card, or bank account.
- PayPal verifies your identity by checking information against your bank or card issuer, which takes a few minutes during signup.
- Your account is ready to use immediately after verification, though some features like sending money to bank accounts may have a 24-hour waiting period.
- You can link multiple cards or bank accounts to one PayPal account, and switch between them when you make a payment.
- PayPal's signup process is free, and you only pay fees when you send money to a bank account or receive money as a business transaction.
Step-by-step account creation
Go to paypal.com and click "Sign Up" in the top right corner. PayPal will ask you to choose between a personal account and a business account — select personal unless you are setting up to receive payments for goods or services. Enter your email address, create a password (at least 8 characters, with a mix of letters, numbers, and symbols), and provide your full name, date of birth, and address.
Next, PayPal asks for a phone number. This is used for account recovery and security alerts, so use a number you check regularly. Enter your country and confirm your address. PayPal will then ask you to link a payment method — either a debit card, credit card, or bank account. If you choose a card, enter the card number, expiration date, and CVV. If you choose a bank account, you will need your routing number and account number, which you can find on a check or in your bank's online portal.
PayPal verifies the payment method by checking it against your bank or card issuer's records. This usually takes a few seconds to a few minutes. Once verification is complete, your account is active and you can start using it immediately. Some features, like transferring money to your bank account, may have a 24-hour waiting period before they become available.
Linking your first payment method
Your first payment method is added during signup, but you can add more later. To add a second card or bank account after you have created your account, log in and go to your Wallet. Click "Link a card or bank account" and follow the same process as during signup.
If you link a bank account, PayPal may make two small test deposits (usually under $1 each) to verify ownership. You will need to confirm the amounts of these deposits in your PayPal account within 30 days. This step proves you control the bank account and prevents fraud. Once confirmed, the bank account is fully linked and ready to use.
You can link as many cards and bank accounts as you want to a single PayPal account. When you send money or make a purchase, you choose which payment method to use at checkout. You can also set a default payment method so PayPal uses it automatically unless you change it.
Verifying your identity
PayPal verifies your identity automatically during signup by checking your name, address, and date of birth against records from your bank or card issuer. This verification is instant in most cases. If PayPal cannot verify you automatically, it will ask you to upload a photo of your ID — a driver's license, passport, or national ID card. This manual review usually takes 24 to 48 hours.
If you are linking a bank account and PayPal cannot verify it automatically, you will see the two test deposit method described above. This is a backup verification step and is normal. You do not need to do anything until the deposits appear in your bank account, which takes 1 to 3 business days.
In rare cases, PayPal may ask for additional information if it detects unusual activity or if your account does not match standard verification patterns. This is a security measure to prevent fraud. If this happens, PayPal will email you with instructions on what documents to provide.
What happens after your account is created
Your account is ready to use as soon as verification is complete. You can immediately receive money from other PayPal users, make purchases at stores that accept PayPal, and send money to other PayPal accounts. Sending money to a bank account or requesting a withdrawal may have a 24-hour waiting period before the feature becomes available on your account.
PayPal sends a confirmation email to the address you provided during signup. Check this email and click the confirmation link to ensure your account is fully activated. If you do not see the email, check your spam folder or request a new confirmation email from PayPal's login page.
Once your account is active, you can customize your profile, add a profile picture, and set your privacy preferences. You can also enable two-factor authentication for extra security — PayPal will send a code to your phone each time you log in from a new device. This is optional but recommended, especially if you plan to link a bank account or use PayPal for regular payments.
Fees and limits on a new account
Creating a PayPal account is free. You only pay fees when you send money to a bank account (1% of the amount, with a minimum fee), receive money as a business transaction, or use certain services like currency conversion. Sending money to another PayPal user is free if you use your PayPal balance or a linked bank account, though it may take 1 to 3 business days to arrive.
New accounts have sending and receiving limits that increase over time as you build a history with PayPal. Your first limit is usually $500 to $2,000 per transaction, depending on your country and how PayPal verifies your identity. These limits are not published by PayPal and vary by account. If you hit your limit, you can request an increase by providing additional verification information.
Receiving money from other PayPal users does not count toward your sending limit. Only money you send out counts. If you need to send more than your limit allows, wait a few days or contact PayPal Support to request a temporary increase.
Frequently Asked Questions
Do I need a credit card to open a PayPal account?
No. You can use a debit card or link a bank account instead. PayPal accepts all three as payment methods during signup. A bank account is often the safest option because it does not expose your card number to merchants.
Can I use PayPal without verifying my identity?
You can receive money and make purchases without full verification, but PayPal will ask for identity verification if you try to withdraw money to a bank account or if you send a large amount. Verification is faster if you provide it upfront during signup.
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 and create a new password. If you do not see the email, check your spam folder or wait a few minutes and request another reset link.
Can I have two PayPal accounts?
PayPal allows one personal account and one business account per person, but both must use different email addresses. You cannot have two personal accounts under the same name or email. If you try to create a duplicate account, PayPal will close it and may limit your access to PayPal services.
How long does it take to withdraw money from PayPal to my bank account?
Standard withdrawals take 1 to 3 business days. Instant transfers to a linked debit card are available in some countries and cost a small fee (usually 1% of the amount). Check your PayPal Wallet to see which withdrawal options are available in your location.