What you need to set up PayPal

To create a PayPal account, you need an email address, a password you haven't used elsewhere, and either a debit card, credit card, or bank account number. PayPal will verify whichever payment method you provide before you can send or receive money. The whole process takes about 10 minutes, though verification can take a few business days.

You do not need to be a business owner or have a certain income level. PayPal accounts are free to open. You only pay fees when you send money to someone outside the US, receive money as a business payment, or use certain services like when ready transfers.

PayPal operates in most countries, but account creation rules vary by location. If you are outside the US, Canada, the UK, or Western Europe, check PayPal's website for your country's requirements before you start—some regions have additional steps or restrictions.

Key Takeaways

  • You need an email address and a debit card, credit card, or bank account to open a PayPal account, and the process takes about 10 minutes.
  • PayPal will ask you to verify your identity by confirming your email address and linking a payment method, which usually takes a few business days.
  • Once your account is verified, you can send money to other PayPal users for free and request payments from friends or family.
  • Fees explore only when you send money internationally, receive business payments, or use services like when ready transfers to your bank account.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right corner. PayPal will ask whether you want a Personal or Business account. Choose Personal unless you plan to invoice customers or run a business—Personal accounts are simpler and have the same peer-to-peer sending features.

Enter your email address, create a password (use something you do not use on other websites), and provide your first and last name. PayPal will send a confirmation email to the address you entered. Open that email and click the link to verify your email address. If you do not see the email within a few minutes, check your spam folder.

After you confirm your email, PayPal will ask for your date of birth, address, and phone number. Enter these exactly as they appear on your ID or bank records—mismatches can slow down verification later. Then add a payment method: either a debit card, credit card, or bank account number. If you choose a bank account, PayPal will make two small deposits to that account within a few business days, and you will need to confirm the amounts to prove you own the account.

How PayPal verifies your identity

PayPal uses the information you provided—your name, address, date of birth, and payment method—to check against public records and banking databases. This usually takes a few minutes to a few hours. If verification is when ready, you can send and receive money right away. If it takes longer, PayPal will send you an email when it is complete.

If PayPal cannot verify you automatically, it may ask you to upload a photo of your ID or provide additional information. This step is required by law to prevent fraud and money laundering. Upload a clear photo of the front and back of your driver's license, passport, or state ID. The photo must show your full name, date of birth, and face. PayPal usually reviews uploaded documents within one business day.

In rare cases, PayPal may lock your account and ask you to call their verification team. This happens when the information you provided does not match public records, or when the system flags unusual activity. If this happens, PayPal will provide a phone number in the email. Have your ID ready when you call.

Linking a bank account versus a card

A debit card or credit card verifies when ready in most cases, so you can start using PayPal the same day. A bank account takes longer because PayPal makes two small test deposits and waits for you to confirm the amounts—this usually takes 3 to 5 business days. However, linking a bank account is safer for receiving money, because PayPal can pull funds directly from your bank if a payment is disputed.

If you link a card, PayPal charges a small fee (usually $0.30 plus 2.2% of the amount) when someone sends you money as a business payment. If you link a bank account, there is no fee for receiving peer-to-peer payments from other PayPal users. For sending money, both cards and bank accounts work the same way—peer-to-peer transfers to other PayPal users are free.

You can add multiple payment methods to one account. Many people link both a card and a bank account, then choose which one to use depending on the transaction.

What you can do once your account is verified

Once verification is complete, you can send money to anyone with a PayPal account or email address. Open the "Send" tab, enter the recipient's email address or phone number, type the amount, and choose whether to send it as a personal transfer (free) or a business payment (fees explore). The recipient will receive a notification and can accept the money into their PayPal account or bank account.

You can also request money from someone else. Click "Request," enter their email address, type the amount, and add a note explaining why. They will see the request in their PayPal account and can pay you directly. Requesting is useful when splitting rent, paying back a loan, or collecting money from a group.

Your PayPal balance shows money that is sitting in your PayPal account. You can transfer this balance to your linked bank account at any time—when ready transfers take minutes but charge a fee, while standard transfers take 1 to 3 business days and are free. You can also leave the money in PayPal and use it to send to others or make online purchases at stores that accept PayPal.

Security settings to set up right away

After you create your account, turn on two-factor authentication. This means PayPal will ask for a code from your phone every time you log in from a new device, making it much harder for someone to access your account if they steal your password. Go to Settings, click "Security," and choose "Two-Factor Authentication." PayPal can send codes by text or through an authenticator app like Google Authenticator.

Review your connected apps and devices in the Security section. PayPal lists every device that has logged into your account. If you see a device you do not recognize, click it and select "Remove." Also check your linked payment methods regularly—if you no longer use a card, delete it from your account so that old card cannot be charged by mistake.

Set up a strong password that you do not use anywhere else. If another website gets hacked and your password is exposed, hackers will try that password on PayPal. A unique password protects you from this. If you struggle to remember passwords, use a password manager like Bitwarden or 1Password.

Frequently Asked Questions

How long does it take to verify a PayPal account?

If you link a debit or credit card, verification usually takes a few minutes to a few hours. If you link a bank account, it takes 3 to 5 business days because PayPal makes two small test deposits and waits for you to confirm the amounts. If PayPal asks you to upload an ID, add another 1 to 2 business days.

Can I use PayPal without a bank account?

Yes. You can link a debit card or credit card instead. However, if you want to receive money from others, a bank account is safer because PayPal can pull funds directly from your bank if a payment is disputed. With only a card, you have less protection.

What happens if PayPal cannot verify my identity?

PayPal will send you an email explaining what information does not match. You can update your profile, upload a photo of your ID, or call their verification team. Most issues are resolved within a few days. If PayPal still cannot verify you, it may close your account and return any balance to your linked bank account.

Is it safe to link my bank account to PayPal?

Yes. PayPal is encrypted and regulated by the US government as a money services business. Your bank account information is not shared with other users or merchants. However, use a strong unique password and turn on two-factor authentication to protect your account from hackers.

Can I have more than one PayPal account?

PayPal allows one Personal account and one Business account per person. If you create multiple accounts with the same email address or payment method, PayPal may close them. If you need both a Personal and Business account, use the same email address and link different payment methods to each one.