What you need to create a PayPal account
You can create a PayPal account in about five minutes with an email address, a password, and basic personal information. PayPal does not require you to link a bank account or card when ready—you can add payment methods later, after your account is active. The whole process happens on PayPal's website or through their mobile app.
Before you start, have your email address ready. This becomes your PayPal login and the address where PayPal sends receipts and notifications. If you plan to receive money, you will also need a way to withdraw it later—either a bank account, a debit card, or a credit card—but you do not need to add this during signup.
Key Takeaways
- You need only an email address and password to create a PayPal account; bank or card details can be added later.
- PayPal offers two account types—Personal and Business—and the choice affects what features you can use and what fees you pay.
- Confirming your email address and adding a payment method are separate steps that happen after your account is created.
- PayPal holds new accounts for a review period before you can withdraw money, which usually takes a few days but can take longer.
- Two-factor authentication is optional but strongly recommended to protect your account from unauthorized access.
Personal account versus Business account
PayPal offers two account types, and the one you choose determines what you can do and what you pay in fees. A Personal account is designed for sending money to friends and family and making purchases online. You can receive money, but PayPal charges you a fee when someone sends you money for goods or services. A Personal account is free to create and has no monthly cost.
A Business account is designed for people who sell goods or services and receive payments regularly. Business accounts have lower per-transaction fees than Personal accounts when you receive payments for sales, but you pay a monthly fee if you use certain features. If you are just starting out and do not know yet whether you will sell, a Personal account is the safer choice—you can upgrade to Business later without losing your account history.
Step-by-step account creation
Go to PayPal.com and click the "Sign Up" button at the top of the page. You will see two options: Personal and Business. Select the one that matches your plan, then enter your email address and create a password. Your password should be at least 8 characters and include uppercase letters, lowercase letters, numbers, and symbols—PayPal will tell you if it is strong enough as you type.
Next, enter your full name, date of birth, and address. PayPal uses this information to verify your identity and comply with financial regulations. After you submit this information, PayPal sends a confirmation email to the address you provided. Open that email and click the confirmation link. Your account is now active, but you cannot send or receive money yet until you add a payment method.
Adding a bank account or card
After your email is confirmed, log into your PayPal account and go to the "Wallet" section. Click "Link a bank account" or "Link a card" depending on what you want to add. If you link a bank account, PayPal will make two small deposits to that account within one to two business days. You then log back into PayPal and enter the amounts of those deposits to confirm you own the account. This verification step protects you from someone else linking your bank account without permission.
If you link a debit or credit card instead, PayPal may ask you to confirm a small charge that appears on your card statement, or it may verify the card when ready. Once your payment method is confirmed, you can send money and make purchases. If you want to receive money from others, you will also need to add a bank account or card so PayPal knows where to send your funds when you withdraw them.
The account review period and withdrawal holds
After you create your account and add a payment method, PayPal places a hold on your account for a review period. During this time, you can send money and make purchases, but you cannot withdraw money you receive. This review period usually lasts a few days, but it can extend to two weeks or longer depending on PayPal's assessment of your account. PayPal does not always explain why the review takes longer, but common reasons include a new email address, a mismatch between your name and your payment method, or a large first transaction.
You can check the status of your account review by logging in and looking for a notification at the top of your account page. If PayPal needs more information, they will ask you to upload a photo of your ID or provide other documentation. Respond to these requests as soon as you can—the faster you provide what they ask for, the faster the review completes.
Setting up two-factor authentication
Two-factor authentication adds a second layer of security to your account. When you log in from a new device or browser, PayPal sends a code to your phone or email, and you must enter that code before you can access your account. This prevents someone who knows your password from logging in without your phone or email.
To turn on two-factor authentication, log into your account, go to Settings, and select "Security." Click "Two-factor authentication" and choose whether you want codes sent to your phone via text message or to your email. PayPal will send you a test code to confirm the method works. Two-factor authentication is not required, but it is strongly recommended if you use PayPal to receive money or if you link a bank account.
What you can do once your account is active
Once your account is created and your email is confirmed, you can send money to anyone with an email address, even if they do not have a PayPal account yet. You can also make purchases on websites that accept PayPal by logging in instead of entering your card details. If you added a payment method, you can use it to pay bills or send money to friends.
If someone sends you money, it appears in your PayPal balance when ready. You can spend it on PayPal-accepting websites, send it to someone else, or withdraw it to your bank account. Withdrawals to a bank account usually take one to three business days, depending on your bank. If you have a PayPal debit card (which you can order after your account is established), you can also spend your balance at any store that accepts Mastercard.
Frequently Asked Questions
Do I need a credit card to create a PayPal account?
No. You need only an email address and a password. You can add a credit card, debit card, or bank account later, and you do not have to add anything when ready. If you plan to receive money, you will eventually need a bank account or card so PayPal knows where to send your funds.
Can I have more than one PayPal account?
PayPal's terms of service say you should have only one account per person. If you create multiple accounts, PayPal may close them or limit your ability to send and receive money. If you need both a Personal and Business account, contact PayPal support to discuss your situation before creating a second account.
How long does it take to withdraw money from PayPal to my bank account?
Withdrawals usually take one to three business days, depending on your bank. Some banks process PayPal transfers faster than others. Weekends and holidays do not count as business days, so a withdrawal requested on Friday may not arrive until Tuesday or Wednesday.
What happens if I forget my PayPal password?
Go to the PayPal login page and click "Forgot your password?" PayPal will send a link to your email address. Click that link and create a new password. If you cannot access the email address linked to your account, contact PayPal support and be ready to verify your identity with personal information or a photo of your ID.
Is PayPal safe to use?
PayPal uses encryption and fraud detection to protect your account and transactions. However, your security also depends on you—use a strong password, turn on two-factor authentication, and do not share your login details with anyone. If you see an unauthorized transaction, report it to PayPal when ready through your account settings.