You need an email address, a valid ID, and either a bank account or debit card

PayPal lets you send and receive money online without sharing your bank details with the other person. To start, you create an account with your email, verify your identity, and link a payment method—usually a bank account or debit card. The whole process takes about 10 minutes, though full verification can take a few days.

PayPal has two account types: Personal and Business. A Personal account is free and works for most people who send money to friends, pay for online purchases, or receive payments occasionally. A Business account costs nothing to open but charges fees when you receive payments—useful if you're selling items or running a small operation. You can start with Personal and upgrade later.

Key Takeaways

  • You need a valid email address, government-issued ID, and either a bank account or debit card to open a PayPal account.
  • Personal accounts are free and have no transaction fees when you send money to friends, but Business accounts charge fees on received payments.
  • PayPal will ask you to verify your identity by uploading a photo of your ID, which usually takes 24 to 48 hours.
  • Once your account is active, you can link multiple payment methods and use PayPal to send money, pay for purchases, or receive payments.
  • Two-factor authentication is optional but strongly recommended to protect your account from unauthorized access.

What you need before you start

Gather these items before opening your account. You'll need a current email address that you check regularly—this is how PayPal contacts you and how you log in. You'll also need a government-issued ID: a driver's license, passport, or state ID card. PayPal will ask you to upload a photo of it during setup.

You must be at least 18 years old. If you're under 18, a parent or guardian can open an account and add you as an authorized user, though this varies by country.

Finally, you need a way to fund your account. This is either a bank account (checking or savings) or a debit card. A credit card can be linked later, but PayPal requires a bank account or debit card to start. If you don't have a bank account yet, you can open one at most banks or credit unions in a few days, or use a prepaid debit card from a retailer.

The five-step setup process

Step 1: Go to PayPal.com and click "Sign Up." You'll see two options: Personal or Business. Choose Personal unless you plan to receive payments for selling goods or services. Click "get your free guide."

Step 2: Enter your email and create a password. Use an email you check regularly. Your password should be at least 8 characters and include uppercase letters, lowercase letters, numbers, and a symbol. PayPal will send you a confirmation email—click the link inside it to verify your email address.

Step 3: Provide your personal information. PayPal asks for your full name, date of birth, address, and phone number. This must match your government ID. If your address has changed recently, use the address on your ID for now; you can update it later.

Step 4: Upload a photo of your ID. PayPal will ask you to take a photo of the front of your driver's license, passport, or state ID using your phone or computer. The photo must be clear and show all four corners of the ID. PayPal verifies this within 24 to 48 hours. Until verification is complete, you can use your account to receive money but not send it.

Step 5: Link a bank account or debit card. PayPal will ask for your bank routing number and account number, or your debit card number. If you link a bank account, PayPal may deposit two small amounts (usually under $1 each) to verify you own the account. You'll need to confirm these amounts in your PayPal settings within 30 days. If you use a debit card, verification is when ready.

What happens after you submit your information

Your account is active when ready, but your sending limit depends on verification status. Until PayPal confirms your ID, you can receive money and make purchases, but you can only send up to $500 per transaction. Once your ID is verified—usually within 24 to 48 hours—you can send larger amounts.

If you linked a bank account, PayPal deposits two small amounts to it within 1 to 3 business days. Check your bank statement, then log into PayPal and enter those amounts in the "Confirm Bank Account" section. This confirms you own the account and lifts any remaining limits.

If you linked a debit card, you're done. Your account is fully set up and ready to use.

How to use your account once it's set up

To send money to a friend, click "Send Money" on your PayPal home page. Enter their email address or phone number, the amount, and a note if you want. If they're also on PayPal, the money arrives when ready. If they're not, PayPal sends them a link to claim it—they have 30 days to do so.

To receive money, share your email address or phone number with the person sending it. They enter it in their PayPal "Send Money" screen, and the funds land in your account. You can then transfer the money to your bank account (usually 1 to 3 business days) or keep it in PayPal to spend online.

To pay for online purchases, look for the PayPal button at checkout. Click it, log in if needed, and confirm the payment. PayPal handles the transaction without sharing your card details with the seller.

Protecting your account with two-factor authentication

Two-factor authentication (2FA) adds a second security layer: even if someone gets your password, they can't access your account without a code sent to your phone. PayPal offers this as an optional feature, but it's worth turning on.

To enable it, log into PayPal, go to Settings, click "Security," then "Two-Factor Authentication." Choose whether you want codes sent by text message or generated by an authenticator app like Google Authenticator. Text message is simpler; an app is more find. Once you turn it on, PayPal will ask for a code every time you log in from a new device.

If you lose access to your phone, PayPal lets you generate backup codes to save in a safe place. Store these somewhere you won't lose them—they're your backup if your phone is stolen or broken.

Frequently Asked Questions

Can I open a PayPal account without a bank account?

You need either a bank account or a debit card to start. If you don't have a bank account, a prepaid debit card from a retailer like Walmart or Target works fine. Some prepaid cards charge monthly fees, so compare options before buying one.

How long does verification actually take?

ID verification usually takes 24 to 48 hours. Bank account verification—confirming the two small deposits—takes 1 to 3 business days for the deposits to appear, then a few minutes for you to confirm them in PayPal. Until both are done, you have a $500 sending limit per transaction.

What if PayPal rejects my ID photo?

PayPal may reject a photo if it's blurry, cut off at the edges, or the ID is expired. Take a new photo in good lighting, make sure all four corners are visible, and check that your ID hasn't expired. If it has, you'll need to renew it at your state's DMV or equivalent before PayPal will accept it.

Can I have more than one PayPal account?

PayPal's terms say one account per person. If you need both a Personal and Business account, you can upgrade your Personal account to Business instead of opening a second one. Using multiple accounts with the same identity can get them limited or closed.

Is PayPal safe for sending money to strangers?

PayPal offers buyer and seller protection for purchases, but sending money to a friend (the "Friends and Family" option) has no protection if something goes wrong. Only use "Friends and Family" for people you trust. For purchases from sellers you don't know, use the standard payment option, which includes protection if the item doesn't arrive or doesn't match the description.