What you need to create a PayPal account

You need three things to set up a PayPal account: a valid email address, a password you create, 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 the verification step can take a few days.

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 costs nothing to open but charges fees when you receive payments from customers—useful if you sell things or offer services. You can start with Personal and upgrade later if you need to.

You do not need to be a U.S. citizen, but you do need to be at least 18 years old and have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) if you live in the United States. PayPal will ask for this during account creation.

Key Takeaways

  • You need an email address, a password, and a debit card, credit card, or bank account to create a PayPal account.
  • PayPal verifies your payment method before you can move money, which usually takes a few days.
  • Personal accounts are free and let you send money and pay for things online; Business accounts are also free but charge fees when you receive customer payments.
  • PayPal will ask for your Social Security Number or ITIN during setup if you live in the United States.

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 Personal and Business, then enter your email address, create a password, and provide your full name, date of birth, and address. This information becomes your account profile.

Next, PayPal asks you to link a payment method. You can add a debit card, credit card, or bank account. If you choose a bank account, you will need your routing number and account number—both appear on the bottom left of a check. If you use a card, just enter the card number, expiration date, and CVV (the three-digit code on the back).

After you submit this information, PayPal sends a confirmation email to the address you provided. Click the link in that email to confirm your email address. Your account is now active, but you cannot send or receive money yet—PayPal must verify your payment method first.

How PayPal verifies your payment method

If you linked a debit or credit card, PayPal places two small deposits into your card account—usually between $0.01 and $0.99 each. These deposits appear within one to two business days. You then log into your PayPal account, go to your wallet or payment methods, and enter the two amounts. Once PayPal confirms the amounts match, your card is verified and you can use your account.

If you linked a bank account, PayPal deposits two small amounts directly into your checking or savings account. The process is the same: wait for the deposits to show up (usually three to five business days), then log in and confirm the amounts. Some banks take longer than others, so if you do not see the deposits after a week, check with your bank to make sure the account information was correct.

Once your payment method is verified, you can send money to other PayPal users, pay for online purchases, and receive payments. If you set up a Business account, you can also create invoices and accept payments from customers.

Adding and managing multiple payment methods

After your first payment method is verified, you can add more cards or bank accounts. Log into your account, go to Wallet (on the website) or the menu (on the app), and select "Add a card" or "Link a bank account." PayPal will verify each new method the same way—with small test deposits.

You can set one payment method as your primary, which is the one PayPal uses by default when you send money or make a purchase. To change your primary method, go to your Wallet, find the method you want to use, and select "Make Primary." You can remove old or unused payment methods at any time by clicking the menu next to that method and selecting "Remove."

What happens after verification

Once your account is verified, you can send money to anyone with an email address or phone number—they do not need a PayPal account yet. PayPal holds the money in their account until they claim it. If they do not have a PayPal account, they can create one and the money will be waiting.

You can also request money from other people. They will receive a notification asking them to pay you. If they have a PayPal account, they can pay directly; if not, PayPal will guide them through creating one first.

For online shopping, you can use PayPal at any store that accepts it. At checkout, select PayPal as your payment method, log in if needed, and confirm the purchase. PayPal charges the payment method you set as primary.

Security steps to take after creating your account

Enable two-factor authentication as soon as your account is active. This adds a second security layer: when you log in from a new device or location, PayPal sends a code to your phone or email, and you must enter it to access your account. Go to Settings, then Security, and turn on two-factor authentication.

Create a strong password—at least 12 characters, mixing uppercase and lowercase letters, numbers, and symbols. Do not use your name, email address, or birthdates. If you use the same password on multiple websites, change it on those sites too, because if one site is breached, your PayPal account becomes vulnerable.

Review your account activity regularly. Log in at least once a month and check your transaction history for anything you do not recognize. If you see unauthorized activity, contact PayPal when ready through the Resolution Center in your account—do not click links in emails claiming to be from PayPal, as these are often phishing attempts.

Frequently Asked Questions

Can I create a PayPal account without a bank account or credit card?

No. PayPal requires at least one payment method to verify your identity and prevent fraud. You must link a debit card, credit card, or bank account during setup. If you do not have any of these, you cannot create a PayPal account.

How long does it take for PayPal to verify my payment method?

Verification usually takes three to five business days for bank accounts and one to two business days for debit or credit cards. The timing depends on your bank or card issuer. If the deposits do not appear after a week, contact your bank to confirm the account information was entered correctly.

What if I forget my PayPal password?

Go to paypal.com and click "Log In," then select "Forgot your password?" Enter your email address and PayPal will send you a link to reset it. Click the link in the email, create a new password, and log in. If you do not receive the email, check your spam folder or contact PayPal support.

Can I use PayPal if I do not have a U.S. address?

PayPal operates in many countries, but the process and requirements vary by location. If you live outside the United States, go to paypal.com and select your country from the dropdown menu at the bottom of the page. PayPal will show you the account options available in your region.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and fraud detection to protect your bank account information. Your actual account number is not shared with sellers—PayPal acts as a middleman. However, use a strong password and enable two-factor authentication to reduce the risk of unauthorized access to your account.