What you need to set up PayPal

Creating a PayPal account takes about 10 minutes and requires three things: 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 add by sending a small deposit (usually less than $1) to confirm it belongs to you. You do not need to be a U.S. citizen, but you do need to be at least 18 years old.

The process is the same whether you plan to send money to friends, receive payments for selling something, or just keep money in your PayPal balance. You can start with one payment method and add more later.

Key Takeaways

  • You will need a valid email address, a password, and at least one debit card, credit card, or bank account to complete signup.
  • PayPal will send a small test deposit to verify your bank account or card actually belongs to you before you can use it.
  • The entire signup process happens on PayPal's website or mobile app and takes about 10 minutes from start to finish.
  • Once your account is created, you can send and receive money when ready, but some features unlock only after verification is complete.

Step 1: Go to PayPal and enter your email

Open a web browser and go to paypal.com, or read the PayPal mobile app from your phone's app store. On the homepage, look for a button that says "Sign Up" — it is usually near the top right of the page. Click it.

You will see a choice between "Personal Account" and "Business Account." Choose Personal Account unless you are setting this up for a registered business. Then enter the email address you use regularly. This email becomes your PayPal login, so use one you check often.

Step 2: Create a password and add your name

PayPal will ask you to create a password. Make it at least 8 characters long and mix uppercase letters, lowercase letters, numbers, and symbols (like ! or @) — this makes it harder for someone else to guess. Write it down somewhere safe, or use a password manager if you have one.

Next, enter your first and last name exactly as they appear on your ID or bank account. PayPal checks this information against your bank or card issuer, so it needs to match. You will also enter your date of birth and the last four digits of your Social Security number (SSN). PayPal uses this to confirm your identity.

Step 3: Add a payment method

PayPal needs to know where your money comes from or goes to. You can link a debit card, credit card, or bank account. Have one of these ready.

If you choose a card, enter the 16-digit card number, the expiration date, and the three-digit security code on the back. If you choose a bank account, you will need your account number and routing number — both appear on a check, or you can find them by logging into your bank's website.

Step 4: Verify your payment method

After you submit your card or bank details, PayPal sends a small test deposit — usually between $0.01 and $0.99 — to confirm the account or card is real and belongs to you. If you linked a bank account, this deposit appears in 1 to 3 business days. If you linked a card, it may appear when ready or take a few days depending on your card issuer.

Once you see the deposit, log back into PayPal and go to your wallet or payment methods. PayPal will ask you to enter the exact amount of that test deposit. Type it in and click confirm. Your payment method is now verified, and you can use it to send and receive money.

Step 5: Review your account settings

After verification, take a moment to check your security settings. Go to the Settings or Account menu (usually a gear icon or your name in the top right). Look for "Security" or "Login & Security." You can add a phone number for extra protection, or turn on two-factor authentication — this means PayPal will text you a code every time someone logs in from a new device.

You can also set a security question and answer, which PayPal uses if you ever forget your password. Once these are done, your account is ready to use.

What you can do right after signup

The moment your account is created, you can send money to anyone with an email address or phone number, even before your payment method is verified. However, the person receiving the money may not be able to withdraw it until you complete verification.

You can also receive money from others when ready. If someone sends you money, it lands in your PayPal balance (the money held in your PayPal account itself). You can leave it there, send it to someone else, or transfer it to your bank account once verification is done.

Frequently Asked Questions

Do I have to use my real name?

Yes. PayPal matches the name you enter against your bank account or card issuer's records. If the names do not match, verification will fail. Use the exact name on your ID or bank statement.

What if the test deposit does not show up?

Bank deposits take 1 to 3 business days. If it has been longer, log into PayPal and check whether the payment method is still pending. If it shows an error, you may need to re-enter the account number or contact your bank to confirm they did not block the deposit.

Can I use PayPal without a bank account?

Yes. You can link a debit card or credit card instead. However, some features — like transferring money to your own account — work better with a bank account. You can add one later.

Is it safe to give PayPal my bank account number?

PayPal is a major financial company regulated by the U.S. government. Your bank account information is encrypted (scrambled so only PayPal can read it). However, only link accounts you trust, and never share your PayPal password with anyone.

What happens if I forget my password?

Go to paypal.com and click "Log In." Then click "Forgot your password?" Enter your email address, and PayPal will send you a link to reset it. You can also use the security question you set up during signup.