What you need to create a PayPal account

You can create a PayPal account in about 10 minutes with an email address, a password, and basic personal information. PayPal will ask for your name, address, phone number, and date of birth. If you want to send or receive money, you'll also need to connect a bank account, debit card, or credit card to your account.

PayPal offers two account types: Personal and Business. A Personal account is free and lets you send money to friends, pay for purchases online, and receive payments. A Business account is also free but includes features like invoicing and the ability to accept payments on a website. Most people start with Personal.

Key Takeaways

  • You need only an email address and password to create a PayPal account, though adding a payment method takes a few extra minutes.
  • PayPal will verify your identity by asking for your name, address, phone number, and date of birth before you can move money.
  • Connecting a bank account is free and takes one to two business days to confirm; debit and credit cards confirm instantly.
  • Your account is protected by two-factor authentication, which you should turn on immediately after setup.
  • You can link multiple payment methods to one account and choose which one to use for each transaction.

Step 1: Go to PayPal and enter your email

Visit paypal.com and click "Sign Up" in the top right corner. You'll see two options: Personal Account and Business Account. Select Personal unless you plan to invoice clients or accept payments on a business website. Click "Next."

Enter the email address you want to use for your PayPal account. This is the address people will use to send you money, so pick one you check regularly. You can change it later, but it's easier to get it right now. Click "Next."

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'll need it every time you log in. Click "Next."

PayPal will ask for your first name, last name, date of birth, and country. Enter exactly what appears on your government ID, because PayPal uses this information to verify your identity later. If the information doesn't match when you try to send or receive money, you'll be asked to confirm it again. Click "Next."

Step 3: Add your address and phone number

Enter your street address, city, state, and ZIP code. This is where PayPal will send any documents or notices. You can use a P.O. box, but some payment methods and features won't work with a P.O. box address—a street address is safer.

Enter your phone number. PayPal uses this to contact you if there's suspicious activity on your account and to verify your identity if you forget your password. Make sure it's a number you can access. Click "Next" to finish account creation.

Step 4: Connect a payment method

PayPal will ask you to add a way to fund your account. You can link a bank account, debit card, or credit card. If you link a bank account, PayPal will deposit two small amounts (usually under $1 each) into your account within one to two business days. You'll then confirm those amounts in your PayPal account to prove you own the bank account. This process is free.

If you use a debit or credit card, PayPal confirms it instantly by charging a small amount and then refunding it. This also takes a few minutes. You can skip this step and add a payment method later, but you won't be able to send money until you do.

Step 5: Turn on two-factor authentication

After your account is created, log in and go to Settings (the gear icon in the top right). Click "Security" and then "Two-Factor Authentication." PayPal will ask whether you want to receive a code by text message or through an authenticator app like Google Authenticator or Microsoft Authenticator. Text message is simpler; an app is more secure.

Choose your method and follow the prompts to confirm. From then on, when you log in from a new device or browser, PayPal will ask for a code in addition to your password. This stops someone who steals your password from accessing your account. Turn this on before you link any money.

What happens after you verify your payment method

Once your bank account, debit card, or credit card is confirmed, your account is fully active. You can send money to anyone with an email address, pay for online purchases, and receive payments from others. If someone sends you money, it lands in your PayPal balance, and you can transfer it back to your bank account for free (this takes one to three business days).

PayPal holds some new accounts for review before allowing large transactions. If this happens to you, PayPal will email you with next steps—usually just confirming your identity or waiting a set number of days. This is normal and not a sign of a problem.

Frequently Asked Questions

Do I have to add a payment method right away?

No. You can create an account and receive money without linking a card or bank account. But you won't be able to send money until you do. If someone sends you money, it stays in your PayPal balance until you add a way to withdraw it.

Can I use a credit card instead of a bank account?

Yes. Credit cards confirm instantly, while bank accounts take one to two business days. Both are free to link. You can connect multiple payment methods and choose which one to use for each transaction.

What if I don't have a bank account?

You can still create a PayPal account and receive money. To withdraw funds, you'll need to add a debit card or have PayPal send money to a prepaid card linked to your name. Some prepaid card providers charge fees for transfers, so check before you choose one.

Is my money safe in PayPal?

PayPal encrypts your data and uses fraud detection to watch for unauthorized activity. If someone uses your account without permission, PayPal's Buyer Protection and Seller Protection cover most transactions. Keep your password strong and two-factor authentication turned on.

Can I change my email address after I create the account?

Yes. Go to Settings, click "Email," and add a new email address. PayPal will send a confirmation link to the new address. Once you confirm it, you can make it your primary email or keep both linked to your account.