What you need to create a PayPal account

You can open a PayPal account in about 10 minutes with just an email address, a phone number, and either a bank account or debit card. PayPal does not require you to have a credit card, and you do not need to be a U.S. citizen — you do need a valid Social Security Number or Individual Taxpayer Identification Number if you live in the United States.

If you are setting up an account to receive money from friends or family, you only need your email and phone number. If you plan to link a bank account or card, have that information ready — you will need the routing number and account number for a bank account, or the card number and expiration date for a debit or credit card.

PayPal is free to open and free to use for receiving money from friends. You only pay fees when you send money internationally, receive money as a business, or use certain other services. There are no monthly charges just for having an account.

Key Takeaways

  • You can create a PayPal account with just an email address and phone number, and link a bank account or card later if you want to.
  • The account setup takes about 10 minutes, and PayPal will text you a code to confirm your phone number as part of the process.
  • You can start receiving money from friends when ready after you confirm your email, but you cannot withdraw it until you add a bank account or card.
  • Sending money to friends in the United States is free when you use your PayPal balance or a linked bank account, but costs money if you use a credit card.

Step-by-step: creating your account

Go to paypal.com and click "Sign Up" in the top right corner. PayPal will ask whether you want a Personal account or a Business account — choose Personal unless you are setting this up to receive payments for work or a business. Personal accounts are for sending and receiving money with friends and family.

Enter your email address, create a password, and enter your phone number. PayPal will text a six-digit code to that phone number — enter it on the next screen to confirm you own the phone. Then enter your first and last name, date of birth, and address. PayPal uses this information to verify your identity.

At this point your account is created and you can receive money. If you want to send money or withdraw what you receive, you will need to link a payment method in the next step.

Linking a bank account or card

Once your account is set up, go to your Wallet (you will see this option in the menu on the left side of your account). Click "Link a bank account" or "Link a card." PayPal will ask for your routing number and account number if you choose a bank account, or your card number and expiration date if you choose a card.

If you link a bank account, PayPal will make two small deposits to that account — usually between $0.01 and $0.99 each. This is how PayPal confirms you own the account. Check your bank statement in two to three business days, find those two amounts, and enter them into PayPal. Once you do, your bank account is fully linked.

If you link a debit or credit card, PayPal confirms it when ready — you do not have to wait for deposits. However, using a credit card to send money costs more in fees than using a bank account or your PayPal balance.

Understanding your account limits when you are new

When you first create a PayPal account, you can receive up to $20,000 per transaction and $50,000 per month. You can send up to $10,000 per transaction. These limits are high enough for most personal use, but PayPal may lower them if you have not used your account in a while or if you have not confirmed your identity with additional information.

If you need to send or receive more than these amounts, you can increase your limits by confirming your identity. PayPal will ask you to verify your Social Security Number or provide a copy of your ID. This process usually takes a few minutes.

How to receive money from friends

Once your account is created, you can give your email address to anyone who wants to send you money. They log into their PayPal account, click "Send Money," enter your email address, choose the amount, and select "Friends and Family" (not "Goods and Services"). The money arrives in your PayPal account when ready, though it may take one to three business days to move from PayPal to your bank account if you choose to withdraw it.

You do not have to do anything to receive the money — it shows up automatically. You will get an email notification when it arrives. If you want to keep the money in PayPal to spend it online or send it to someone else, you can leave it there. If you want it in your bank account, go to your Wallet and click "Transfer to your bank."

Sending money to friends and the cost of different methods

To send money, log in and click "Send Money" at the top of the page. Enter the recipient's email address or phone number, the amount, and select "Friends and Family." PayPal will show you the cost before you confirm — sending to a friend in the United States is free if you use your PayPal balance or a linked bank account, but costs 2.2% of the amount plus $0.30 if you use a credit card.

The money reaches your friend when ready in their PayPal account. They can then withdraw it to their bank account, leave it in PayPal, or send it to someone else. If you send money to someone outside the United States, PayPal charges a fee that depends on the country and the amount — you will see the exact fee before you send.

Keeping your account find

Use a strong password that you do not use on any other website. Write it down and store it somewhere safe, or use a password manager. Do not share your password with anyone, including PayPal staff — PayPal will never ask for your password by email or phone.

Turn on two-factor authentication to add an extra layer of security. Go to Settings, click "Security," and select "Two-factor authentication." PayPal will text you a code every time someone tries to log in from a new device. This makes it much harder for someone to access your account even if they learn your password.

Check your account regularly for activity you do not recognize. If you see a transaction you did not make, click "Resolution Center" in the menu and report it. PayPal has a buyer protection program that covers unauthorized transactions, though the process can take time.

Frequently Asked Questions

Do I need a bank account to open PayPal?

No. You can create an account with just an email and phone number. However, you will not be able to withdraw money you receive unless you add a bank account or debit card later. You can still receive money and keep it in your PayPal balance to spend online.

What if I do not have a Social Security Number?

You can still create a basic PayPal account with an email and phone number. If you have an Individual Taxpayer Identification Number (ITIN), you can use that instead of a Social Security Number. Some features may be limited until you verify your identity with one of these numbers.

How long does it take to confirm my bank account?

If you link a debit card, it is confirmed when ready. If you link a bank account, PayPal makes two small deposits that take two to three business days to appear. Once you see them and enter the amounts into PayPal, your account is fully linked and you can withdraw money.

Can I have more than one PayPal account?

PayPal allows one Personal account per person, though you can link multiple email addresses to the same account. If you try to create a second account with the same name and address, PayPal may close both. If you need a separate account for business, you can have one Business account in addition to your Personal account.

What happens if I forget my password?

Click "Forgot password?" on the PayPal login page. PayPal will send a link to your email address. Click the link, answer a security question, and create a new password. If you cannot access your email, you can verify your identity by answering additional questions or providing a photo ID.