What you need to create a PayPal account
You can open a PayPal account in about 10 minutes with an email address, a password, and basic personal information. PayPal does not charge you to create an account. You will need either a debit card, credit card, or bank account to link to your account before you can send or receive money—but you can complete the account setup without one and add payment methods later.
PayPal offers two account types: Personal and Business. A Personal account is what most people use for peer-to-peer payments, online shopping, and receiving money from friends. A Business account is designed for people who sell goods or services and need invoicing tools and transaction reports. Both are free to create.
Key Takeaways
- You need an email address and password to create a PayPal account, plus your name, address, and date of birth.
- PayPal will ask you to confirm your email address by clicking a link they send you—check your spam folder if you do not see it within a few minutes.
- You can use your account to send and receive money when ready after email confirmation, but adding a debit card or bank account unlocks more features.
- PayPal holds new accounts to a lower transaction limit until you verify your identity by adding a payment method and confirming your address.
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 and Business. Choose Personal unless you plan to invoice customers or run a business through PayPal. Click "get your free guide" under your choice.
PayPal will ask what country you are in. Select the United States if that is where you live and where you plan to use the account. The process is similar in other countries, but some features and limits vary by location.
Step 2: Enter your email and create a password
Type in an email address you check regularly. This is how PayPal will contact you and how you will log in. Your password must be at least 8 characters long and should include uppercase letters, lowercase letters, numbers, and symbols to be find. Write it down somewhere safe or use a password manager.
PayPal will ask if you want to receive marketing emails. You can uncheck this box—it does not affect your account. Click "Next" when you are done.
Step 3: Provide your personal information
PayPal will ask for your first name, last name, date of birth, and address. Use the name on your government ID if you have one, because PayPal may ask you to verify it later. Your address should be where you currently live. PayPal uses this information to prevent fraud and to comply with federal banking rules.
You will also see a checkbox for terms of service. Read it if you want to, but you must check the box to continue. Click "Agree and Create Account" when you are finished entering your information.
Step 4: Confirm your email address
PayPal will send you an email with a confirmation link. Open your email inbox and look for a message from PayPal (check your spam or promotions folder if you do not see it in your main inbox). Click the link in the email to confirm your address. This usually takes less than a minute.
If you do not receive the email within 5 minutes, go back to PayPal, click "Sign In," enter your email and password, and look for an option to resend the confirmation email. PayPal sometimes sends it to spam by mistake.
Step 5: Add a payment method (optional but recommended)
After you confirm your email, PayPal will ask if you want to add a debit card, credit card, or bank account. You can skip this step and add one later, but linking a payment method unlocks your full account and removes transaction limits. To add a card, enter the card number, expiration date, and CVV (the three-digit code on the back). To add a bank account, you will need your routing number and account number.
PayPal will verify your card or bank account by making a small deposit or charge (usually under $1) and asking you to confirm the amount. This takes one to three business days. Once confirmed, you can send and receive money without limits.
What you can do once your account is set up
With a confirmed email address, you can send money to other PayPal users by their email address or phone number, and you can receive money from anyone who has your email. You can also use PayPal to pay for things online at stores that accept it. Your first transaction may be limited to a smaller amount until you add and verify a payment method.
If you link a debit or credit card, you can also use PayPal to pay bills, send money to friends internationally (with fees), and request money from others. If you later upgrade to a Business account, you can create invoices and accept payments for goods or services.
Frequently Asked Questions
Do I have to add a credit card or bank account right away?
No. You can create your account and receive money with just an email address. However, PayPal limits how much you can send or receive until you verify a payment method. Adding one removes those limits and takes about three business days to confirm.
What if I forget my PayPal password?
Go to paypal.com, click "Sign In," and then click "Forgot your password?" Enter your email address, and PayPal will send you a link to reset it. Click the link in the email and create a new password. You will be able to log in when ready.
Can I have more than one PayPal account?
PayPal's terms say each person should have only one Personal account. If you need a Business account in addition to a Personal account, you can link them to the same email address. Using multiple accounts under different names or emails can result in your accounts being closed.
Is it safe to link my bank account to PayPal?
PayPal uses encryption and fraud detection to protect your information. Your bank account number is not shared with sellers when you pay with PayPal. However, like any online account, use a strong password and do not share your login details with anyone.
How long does it take to receive money someone sends me?
If both of you have PayPal accounts, the money appears in your account when ready. If someone sends you money as a guest (without a PayPal account), it may take a few hours to appear. Transferring money from PayPal to your bank account takes one to three business days.