What you need to create a PayPal account

You can create a PayPal account in about 10 minutes with an email address, a password, and either a debit card, credit card, or bank account. PayPal will verify your identity by checking your name, address, and date of birth against public records — this usually happens when ready, though sometimes takes a few hours. If you're under 18, you cannot open a PayPal account yourself; a parent or guardian must open it on your behalf.

PayPal offers two account types: Personal and Business. A Personal account is free and lets you send and receive money, pay for things online, and use PayPal at checkout. A Business account is also free but is designed for people who sell goods or services and need invoicing tools and transaction reports. You can switch between them later, so start with whichever matches what you plan to do right now.

Key Takeaways

  • You need an email address, a password, and a valid debit card, credit card, or bank account to open a PayPal account.
  • PayPal verifies your identity using your name, address, and date of birth, which usually takes a few minutes but can take a few hours.
  • Personal accounts are free and work for sending money and paying online; Business accounts are also free and add invoicing and reporting tools.
  • After you confirm your email, you can use PayPal when ready, though some features may be limited until you add a payment method.

Step 1: Go to PayPal and choose your account type

Visit paypal.com and click the "Sign Up" button in the top right corner. You will see two options: Personal Account and Business Account. If you plan to send money to friends, pay for online purchases, or receive money from one or two people, choose Personal. If you plan to invoice customers, sell items regularly, or run a business, choose Business. You can change this later if you change your mind.

Click your choice and you will land on a form asking for your country and email address. Enter the email address you use most often — this is how PayPal will contact you and how you will log in. Make sure you have access to this email account, because PayPal will send you a confirmation link you must click within 24 hours.

Step 2: Create your password and enter your personal details

PayPal will ask you to create a password. Use at least 8 characters and mix uppercase letters, lowercase letters, numbers, and symbols (like ! or @) to make it strong. Write it down somewhere safe, or use a password manager if you have one. Do not use your name, birthday, or email address as your password.

Next, enter your full name, date of birth, and address exactly as they appear on your government ID or the records PayPal will check. Mismatches here are the most common reason verification fails. If you have moved recently, use your current address. PayPal will verify this information against public databases — it does not check your credit score or pull a hard inquiry on your credit report.

Step 3: Confirm your email address

PayPal will send a confirmation email to the address you entered. Open that email and click the "Confirm your email" link. This link expires after 24 hours, so do this right away. If you do not see the email within a few minutes, check your spam or junk folder — sometimes PayPal emails land there by mistake.

Once you click the link, you will be taken back to PayPal and your email will be confirmed. At this point, your account exists and you can log in, but some features will be limited until you add a payment method.

Step 4: Add a debit card, credit card, or bank account

PayPal will ask you to link a payment method. You can add a debit card, credit card, or bank account. To add a card, enter the card number, expiration date, and CVV (the three-digit code on the back). To add a bank account, enter your routing number and account number — you can find these 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 to $2 for a card, or making two small deposits for a bank account) and then refunding it. This takes one to three business days. Once verified, you can send money, pay for things, and receive payments. If you do not want to add a payment method right now, you can skip this step and add one later — but you will not be able to send money until you do.

Step 5: Review your security settings

After your account is set up, log in and go to your Settings (usually a gear icon in the top right). Click "Security" and review your login information. PayPal offers two-factor authentication, which sends a code to your phone or email every time you log in from a new device. This is optional but recommended, especially if you plan to use PayPal to receive money or make large purchases.

You can also set up a security question and answer, which PayPal may ask if you forget your password or if something looks unusual. Choose a question you will remember and an answer only you would know. Once you have done this, your account is ready to use.

What happens if PayPal cannot verify your identity

If PayPal's verification fails, you will see a message saying your account is limited. This usually happens because your name, address, or date of birth does not match what PayPal found in public records. Call PayPal at 1-888-221-1161 (in the US) and explain the mismatch — for example, if you recently changed your name or moved and your address has not updated yet. PayPal may ask you to upload a photo of your ID to verify manually. This process can take a few days to a week.

In rare cases, PayPal may close your account if it suspects fraud or if you are under 18. If this happens, PayPal will tell you why in an email. You cannot reopen the same account, but you can create a new one once the issue is resolved — usually after 6 months.

Frequently Asked Questions

Can I use PayPal without adding a card or bank account?

You can create an account without one, but you will not be able to send money or pay for things until you add a payment method. You can receive money with just an email address, so if someone wants to send you funds, they can do that right away.

What if I do not have a bank account?

You can link a debit card instead. If you do not have either, some prepaid debit cards (like those sold at grocery stores) work with PayPal. You will need a card with a Visa, Mastercard, American Express, or Discover logo on it.

How long does it take to verify my bank account?

PayPal makes two small deposits to your bank account, which usually arrive within one to three business days. Once they arrive, you log back into PayPal and enter the amounts to confirm you own the account. After that, your bank account is verified and ready to use.

Can I have more than one PayPal account?

PayPal's terms say you should have only one account per person. If you need both a Personal and Business account, contact PayPal support to ask about linking them. Opening multiple accounts under the same name or email can result in all of them being closed.

What if I forget my 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 the link, create a new password, and log in. If you do not have access to your email account, call PayPal at 1-888-221-1161 and they can help you regain access.