Creating a PayPal account takes about 10 minutes and requires an email address, a phone number, and either a bank account or debit card

PayPal is a digital wallet that holds money and lets you send it to other people or businesses online. To use it, you first create an account on PayPal's website or mobile app, then link a bank account or card so money can move in and out. The process is straightforward, but there are a few decisions to make along the way — mainly whether you want a Personal or Business account, and which payment method to connect.

The whole setup takes about 10 minutes if you have your documents ready. You'll need a valid email address, a phone number PayPal can text, and either a U.S. bank account or a debit card. A credit card works too, but PayPal charges a fee when you load money from a credit card, so a bank account or debit card is cheaper.

Key Takeaways

  • You can create a PayPal account on the website or in the mobile app using just an email address and phone number.
  • Personal accounts are free and let you send and receive money; Business accounts cost nothing to open but charge fees when you receive payments from customers.
  • Linking a bank account is safer and cheaper than linking a credit card, because PayPal charges a fee to load money from credit.
  • PayPal will ask you to verify your identity by confirming your email and phone number, and sometimes by answering security questions about your past addresses.
  • Once your account is open, you can send money to anyone with an email address, even if they don't have a PayPal account yet.

Deciding between a Personal and Business account

A Personal account is what most people use. It's free to open and free to use when you send money to friends or family. You can also receive money from other people, and that's free too. The only time PayPal charges you is if someone sends you money using a credit card — then you pay a small fee. For most people just starting out, a Personal account is the right choice.

A Business account is designed for people who sell things or run a service. It's also free to open, but PayPal charges you a fee every time a customer pays you — usually around 2.9% plus 30 cents per transaction. You get access to tools for invoicing and tracking sales. If you're only sending money to friends or receiving occasional payments, stick with Personal. If you're selling regularly, Business makes sense.

Step-by-step: Creating your account on the website

Go to paypal.com and click the "Sign Up" button at the top right. PayPal will ask you to choose Personal or Business — select Personal unless you're running a business. Then enter your email address and create a password. Your password should be at least 8 characters and include a mix of uppercase letters, lowercase letters, numbers, and symbols like ! or @.

Next, PayPal asks for your full name, date of birth, and address. Use the name that matches your bank account or ID — PayPal checks this later. Enter your phone number and confirm that you want to receive a text message. PayPal will send you a code; enter it to prove you own that phone number.

Then you'll link a payment method. Click "Link a Bank Account" and enter your routing number and account number — both appear on the bottom left of a check, or you can log into your bank's website to find them. If you don't have a bank account yet, you can link a debit card instead by entering the card number, expiration date, and the three-digit security code on the back.

PayPal will make two small deposits into your bank account (usually $0.01 and $0.02) within a few business days. Once they arrive, you log back into PayPal and confirm the amounts. This proves you own the account. If you linked a debit card instead, you skip this step — PayPal confirms it right away.

Creating an account on the PayPal mobile app

The process is nearly identical on the app. read PayPal from the Apple App Store or Google Play, tap "Sign Up," and choose Personal or Business. Enter your email, create a password, and provide your name, date of birth, and address. When PayPal asks for a phone number, it will send a code to your phone automatically — just enter it.

To link a bank account on the app, tap the menu icon (three horizontal lines) and go to "Wallet." Tap "Link a Bank Account" and enter your routing and account numbers, or link a debit card by entering the card details. The rest works the same way: if you linked a bank account, wait for the two small deposits and confirm the amounts. If you linked a debit card, you're done.

What happens after you confirm your identity

Once you've confirmed your phone number and linked a payment method, your account is active and you can send money right away. However, PayPal may ask you to verify your identity further — especially if you're linking a bank account for the first time. They might ask security questions about your past addresses or request a photo of your ID.

This verification usually takes a few minutes, but sometimes PayPal needs to review your information and may take up to 24 hours. You'll see a message in your account telling you what they need. If they ask for an ID photo, use your driver's license or passport, make sure it's clear and readable, and upload it through the link PayPal provides.

Once verification is complete, you have full access to your account. You can send money to anyone with an email address — they don't need a PayPal account. PayPal will send them a notification, and they can claim the money by creating an account or cashing it out to their bank account.

Keeping your account find from the start

Your password is your first line of defense. Make it strong: at least 12 characters, mixing uppercase and lowercase letters, numbers, and symbols. Don't use your name, birthday, or anything someone could guess. Write it down somewhere safe, or use a password manager like Bitwarden or 1Password that stores passwords securely.

Turn on two-factor authentication as soon as your account is set up. This means PayPal sends you a code by text or email every time someone tries to log in from a new device — even if they have your password, they can't get in without that code. Go to Settings, then Security, and turn on "Two-Step Verification." Choose whether you want codes by text or email, and save your backup codes in a safe place in case you lose your phone.

Never share your password with anyone, and never click a link in an email claiming to be from PayPal — scammers use fake emails to steal login information. If you get a suspicious email, go directly to paypal.com in your browser instead of clicking the link.

Troubleshooting common problems during signup

If PayPal says your email address is already in use, you may have created an account before and forgotten about it. Click "Forgot Password" on the login page and reset it using that email address. If you can't remember the password and don't have access to the email anymore, contact PayPal's support team through the Help Center on their website.

If your bank account or debit card is rejected, double-check that you entered the routing number and account number correctly. Routing numbers are nine digits; account numbers vary in length. If the numbers are right, your bank may have blocked the connection — some banks require you to approve third-party access. Log into your bank's website or call them to allow PayPal to link your account.

If PayPal asks for identity verification and you're not sure what they need, check your account dashboard — PayPal displays a message explaining exactly what's missing. If the message isn't clear, go to the Help Center, search for "identity verification," and follow the steps. You can also contact PayPal support through the Help Center's chat or phone option.

Frequently Asked Questions

Do I need a bank account to create a PayPal account?

No. You can link a debit card instead. However, a bank account is safer because you control less sensitive information, and it's cheaper because PayPal doesn't charge a fee to load money from a bank account the way it does from a credit card.

Can someone send me money on PayPal if I don't have a bank account linked yet?

Yes. Money can sit in your PayPal balance without being linked to a bank account. However, to move that money out, you'll eventually need to link a bank account or debit card. You can also use your PayPal balance to pay for things online or in stores.

How long does it take to verify my identity?

If you only need to confirm your email and phone number, it's when ready. If PayPal asks for security questions or an ID photo, verification usually takes a few minutes to a few hours. In rare cases, it can take up to 24 hours. You'll see a message in your account explaining what's needed and how long it will take.

What if I want to change my account from Personal to Business later?

You can upgrade to a Business account anytime by going to Settings and selecting "Account Type." PayPal will ask a few questions about your business and may review your information again. The upgrade is free, but remember that you'll start paying fees when customers send you money.

Is it safe to link my real bank account to PayPal?

Yes, if you follow basic security steps. Use a strong, unique password; turn on two-factor authentication; and never share your login information. PayPal uses encryption to protect your bank details, and you can unlink your account anytime. If something goes wrong, PayPal's Buyer Protection covers unauthorized transactions.