What you need to create a PayPal account

You can set up a PayPal account in about 10 minutes using a computer or phone. You will need a valid email address, a password you create, and either a debit card, credit card, or bank account number to link to your account. PayPal does not charge you to open an account—you only pay fees when you send money or receive payments for goods and services.

PayPal offers two account types: Personal and Business. A Personal account is for sending money to friends and family, paying for online purchases, and receiving payments for small sales. A Business account includes invoicing tools and is designed for people who sell regularly. You can start with a Personal account and upgrade later if you need to.

Key Takeaways

  • You need an email address, password, and a debit card, credit card, or bank account to create a PayPal account.
  • PayPal offers Personal accounts for everyday use and Business accounts for regular sellers, and you can switch between them later.
  • The setup process takes about 10 minutes and happens entirely online through PayPal's website or mobile app.
  • After you create your account, you should verify your email address and link at least one payment method before sending or receiving money.
  • PayPal charges different fees depending on what you use the account for—sending to friends is free, but receiving payments for goods or services costs a percentage.

Step 1: Go to PayPal and enter your information

Visit paypal.com on a computer or open the PayPal mobile app. Click the "Sign Up" button. You will see two options: Personal and Business. Choose Personal unless you plan to invoice customers or sell regularly. Enter your email address, create a password (PayPal requires at least 8 characters with uppercase, lowercase, and a number), and select your country and currency.

PayPal will ask for your first name, last name, date of birth, and address. Use the address where you currently live. If you plan to receive money, PayPal may later ask you to confirm this address matches your bank or card records, so accuracy matters here.

Step 2: Link a payment method

PayPal will ask you to add a debit card, credit card, or bank account. If you add a card, enter the 16-digit number, expiration date, and three-digit security code on the back. If you add a bank account, you will need your routing number and account number, which you can find on a check or in your bank's online portal.

PayPal will verify your card or bank account by charging a small amount (usually $1.95 or less) and then refunding it within a few days. Some banks and cards verify when ready instead. You do not need to wait for this verification to use your account for most purposes, but you will need it confirmed before you can withdraw money to that account.

Step 3: Verify your email address

PayPal will send a confirmation email to the address you provided. Open your email inbox and look for a message from PayPal with the subject line "Confirm your email address" or similar. Click the link in that email or copy the code it provides and paste it into PayPal's verification page. This step takes less than a minute and confirms that you own the email address.

If you do not see the email within a few minutes, check your spam or junk folder. PayPal emails sometimes get filtered there. If you still cannot find it, you can ask PayPal to resend the confirmation email from your account settings.

Step 4: Add security settings

Once your account is created, log in and go to your account settings. PayPal recommends setting up two-factor authentication, which sends a code to your phone or email whenever you log in from a new device. This protects your account if someone learns your password. You can turn this on in the Security section of your settings.

You should also review your notification preferences so you know when money arrives or leaves your account. PayPal can send these alerts by email or text message. Setting these up now means you will catch fraud or unauthorized activity quickly.

Step 5: Start using your account

Your account is now ready to use. You can send money to friends and family for free by entering their email address or phone number and the amount. You can also use PayPal to pay for online purchases at stores that accept it—just select PayPal at checkout instead of entering your card details.

If you want to receive money from others, you can share your PayPal email address with them, and they can send you funds. If you plan to sell items or offer services, you may want to upgrade to a Business account or set up an invoice, which you can do anytime from your account dashboard.

What happens after you set up your account

PayPal may ask you to verify additional information before you can send large amounts or receive payments for goods and services. This is part of their fraud prevention process and usually involves confirming your identity with a government ID or answering security questions. This verification can take a few hours to a few days.

Your account limits depend on how much you have verified. A new account with only an email and card linked can send smaller amounts. Once you verify your identity and confirm your bank account, your limits increase. PayPal publishes these limits in your account settings under "Limits".

Frequently Asked Questions

Can I use PayPal without a bank account?

Yes. You can create an account and link a debit or credit card instead. However, if you want to withdraw money from PayPal to your own account, you will eventually need to add a bank account. Some features, like receiving payments for goods and services, work better with a bank account linked.

What if I forget my PayPal password?

Go to paypal.com and click "Log In". Then click "Forgot password?" Enter your email address, and PayPal will send you a link to reset it. Click that link and create a new password. The reset link expires after a few hours, so do this soon after you request it.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and fraud monitoring to protect your information. Your bank account number is not shared with the people you send money to—PayPal acts as the middleman. However, only link accounts you trust, and monitor your account regularly for unauthorized activity.

Can I have more than one PayPal account?

PayPal's terms of service say you should have only one Personal account per person. If you need separate accounts for personal and business use, you can upgrade your Personal account to a Business account instead of creating a second one. Creating multiple accounts can result in them being closed.

How long does it take to withdraw money from PayPal?

Withdrawals to a linked bank account usually take one to three business days, depending on your bank. Transfers to a debit card can be faster—sometimes next business day—but may cost a small fee. You can see the timeline for each option when you request the withdrawal.