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 basic personal information. PayPal does not require you to link a bank account or card immediately—you can add payment methods later, after your account is active. The entire process happens online through PayPal's website or mobile app.
PayPal offers two account types: Personal and Business. A Personal account is free and lets you send and receive money, make purchases online, and use PayPal at stores that accept it. A Business account costs nothing to open but includes invoicing tools and the ability to accept payments from customers. Most people start with Personal unless they are running a business that takes payments from others.
Before you start, have your email address ready. You will use this to log in every time. If you plan to receive money or make purchases, you will also need to add a payment method—a debit card, credit card, or bank account—but you can do this after your account is created.
Key Takeaways
- You need only an email address and password to create a PayPal account; payment methods can be added later.
- PayPal verifies your identity by sending a confirmation link to your email, so check your inbox and spam folder immediately after signing up.
- Adding a debit or credit card takes a few minutes and is required if you want to send money or make purchases from your PayPal balance.
- Linking a bank account is optional but gives you more flexibility for withdrawals and larger transfers.
- Your account is ready to receive money as soon as email verification is complete, even if no payment method is linked yet.
Step-by-step account creation
Go to paypal.com or open the PayPal mobile app and tap "Sign Up." Choose whether you want a Personal or Business account. Personal is the default choice for most people sending money to friends, paying bills, or shopping online.
Enter your email address, create a password, and provide your first and last name. PayPal will ask for your date of birth and country of residence. After you submit this information, PayPal sends a confirmation email to the address you provided. Open that email and click the confirmation link within 30 minutes. If you do not see it, check your spam or promotions folder—confirmation emails sometimes land there.
Once you click the link, your account is active. PayPal may ask you to answer security questions or verify your phone number by text. This is normal and takes less than a minute. After this step, you can log in and start using your account.
Adding a payment method
To send money or make purchases, you need to add at least one payment method. PayPal accepts debit cards, credit cards, and bank accounts. Adding a card is fastest: go to your account settings, select "Wallet" or "Payment Methods," and enter your card number, expiration date, and CVV. PayPal verifies the card immediately in most cases.
Linking a bank account takes slightly longer. You provide your routing number and account number, and PayPal makes two small deposits to your account (usually within one to two business days). You then log into your bank's website, find those deposits, and enter the amounts into PayPal to confirm you own the account. This extra step protects both you and PayPal from fraud.
You do not have to add a payment method right away. If someone sends you money, it sits in your PayPal balance and you can use it to pay other people or make purchases without linking anything. You only need a payment method if you want to send money from your own funds or withdraw cash to your bank account.
Verifying your identity
PayPal may ask you to verify your identity before you can send large amounts of money or withdraw funds. This usually means uploading a photo of your driver's license or passport. The process is done through the app or website and takes a few minutes.
If PayPal flags your account for review, you will see a message in your account dashboard. Follow the prompts to upload your ID. PayPal typically reviews these within 24 hours. Until verification is complete, you may not be able to send money or withdraw your balance, though you can still receive payments.
Setting up security for your account
After your account is created, add a phone number to your account settings. PayPal can use this to send you security codes if someone tries to log in from an unfamiliar device. You can also enable two-factor authentication, which requires a code from your phone every time you log in from a new location.
Create a strong password—at least 12 characters, mixing letters, numbers, and symbols. Do not use your name, email, or birthdate. If you use PayPal on a shared computer, always log out when you are finished and never save your password in the browser.
Review your account settings periodically to check which devices are logged in and which payment methods are saved. You can remove old cards or devices you no longer use. PayPal also lets you set spending limits if you want an extra layer of control.
What happens if verification fails or your account is limited
PayPal sometimes limits new accounts temporarily to prevent fraud. If this happens, you will see a message when you log in. The limit usually lifts after a few days or once you complete additional verification steps. PayPal will tell you exactly what is needed—usually a photo ID or proof of address.
If PayPal rejects your ID or asks for more information, respond as quickly as possible. Delays in responding can result in your account being closed. Keep copies of everything you submit in case you need to follow up.
If your account is closed, you can contact PayPal's Resolution Center through your account or call their customer service line. The reason for closure is usually explained in an email. Common reasons include suspicious activity, repeated failed verification attempts, or violation of PayPal's user agreement. If the closure was a mistake, PayPal can reopen your account once the issue is resolved.
Using your account for the first time
Once your account is verified and a payment method is added, you can send money to anyone with an email address. Go to "Send Money," enter the recipient's email or phone number, the amount, and whether it is for goods, services, or personal use. The money usually arrives within minutes if the recipient has a PayPal account, or within one to three business days if they do not.
You can also use your PayPal account to shop online at any store that displays the PayPal button at checkout. You do not have to enter your card details each time—just log in and confirm the purchase. This is faster and safer than typing your card number into multiple websites.
If you receive money, it lands in your PayPal balance. You can spend it immediately at any PayPal-accepting store, send it to someone else, or withdraw it to your bank account. Withdrawals to a linked bank account typically take one to three business days.
Frequently Asked Questions
Do I need a credit card to open a PayPal account?
No. You can create an account with just an email address. You only need a payment method if you want to send money from your own funds or make purchases. If you only plan to receive money, you do not need to add anything.
What if I forget my PayPal password?
Go to paypal.com and click "Log In," then select "Forgot Password?" Enter your email address and PayPal sends a reset link. Click the link in your email and create a new password. If you do not receive the email, check your spam folder or contact PayPal support.
Can I have more than one PayPal account?
PayPal's terms say each person should have only one Personal account. If you need both a Personal and Business account, you can link them to the same email address. Creating multiple accounts with the same information can result in all of them being closed.
How long does it take to receive money after someone sends it to me?
If the sender has a PayPal account and sends to your email, the money appears in your balance instantly. If they send from a bank account or card, it may take one to three business days. You can use the money immediately even if it is still processing.
Is PayPal safe for sending money to people I know?
PayPal offers buyer and seller protection for purchases, but personal transfers between friends have limited protection. If you send money as a gift or personal loan, PayPal cannot reverse it if the recipient does not send it back. Only use the "Goods and Services" option if you are paying for something you can dispute.