What you need to create a PayPal account

You need an email address, a valid government ID, and either a bank account or debit card. PayPal will verify your identity using the ID and link your bank account or card to move money in and out. The whole process takes about 15 minutes on a computer or phone, and you can start sending money to friends or paying for purchases the same day.

If you don't have a bank account yet, a debit card works just as well. PayPal accepts Visa, Mastercard, American Express, and Discover. You'll also need to be at least 18 years old and a resident of a country where PayPal operates — which includes the US, Canada, most of Europe, Australia, and many others.

Key Takeaways

  • You need an email address, a government ID, and either a bank account or debit card to open a PayPal account.
  • PayPal verifies your identity by checking your ID and confirming your bank account or card, which usually takes a few minutes.
  • Once your account is set up, you can send money to friends, pay for online purchases, and receive payments the same day.
  • PayPal offers two account types: Personal (for sending money to friends and shopping) and Business (for selling items or running a business).
  • You can add multiple bank accounts or cards to your PayPal account, but you'll need to verify each one before using it.

Step-by-step: creating your account

Go to paypal.com and click "Sign Up" in the top right corner. You'll see two options: Personal Account or Business Account. Choose Personal if you're just sending money to friends or shopping online. Choose Business if you plan to sell items, invoice clients, or run a small business.

Enter your email address and create a password. PayPal will send a confirmation email to that address — open it and click the link to verify your email. Then fill in your full name, date of birth, and address. PayPal uses this information to match your identity against your government ID.

Next, add your bank account or debit card. Click "Link a bank account" or "Link a card" and enter the routing number and account number (for a bank) or the card number, expiration date, and CVV (for a card). PayPal will verify the account or card by making two small test deposits to your bank account — usually within one to two business days. Check your bank statement, find those two amounts, and enter them into PayPal to confirm.

Finally, upload a photo of your government ID — a driver's license, passport, or state ID card. PayPal scans it to confirm your name, date of birth, and address match what you entered. This usually takes a few minutes, though it can take up to 24 hours in some cases.

Personal vs. Business accounts: which one to choose

A Personal Account is free and designed for sending money to friends, splitting bills, and shopping online. You can receive money from friends, but you cannot invoice clients or accept payments for goods and services. There are no monthly fees, and you can send and receive up to $20,000 per month without restrictions.

A Business Account is also free to open and is designed for people who sell items, run a small business, or invoice clients regularly. You can accept payments for goods and services, and customers can pay you through PayPal. PayPal charges a fee for each transaction you receive (usually 2.9% plus $0.30 per payment), but you get access to invoicing tools, shipping labels, and detailed sales reports. If you only send money to friends, a Personal Account is simpler and has no transaction fees.

Verifying your identity and bank account

PayPal requires identity verification to prevent fraud and comply with US financial regulations. When you upload your government ID, PayPal's system scans it and checks that your name, date of birth, and address match what you entered during signup. This is automatic and usually takes a few minutes, though it can take up to 24 hours.

Bank account verification works differently. PayPal makes two small deposits (usually between $0.01 and $0.99 each) to your bank account. You'll see these deposits appear in your bank statement within one to two business days. Log back into PayPal, go to your wallet or bank account settings, and enter the two amounts. Once you confirm them, your bank account is verified and you can send and receive money.

If you're verifying a debit card instead, PayPal may ask you to confirm a small charge that appears on your card statement, or it may verify instantly depending on the card issuer. Check your card statement within a few days and enter the amount into PayPal if prompted.

Adding multiple bank accounts or cards

You can link more than one bank account or card to your PayPal account. This is useful if you want to send money from different accounts or receive payments into different places. To add another account, log into PayPal, go to your wallet or settings, and click "Link a bank account" or "Link a card." Follow the same verification steps as before.

You can set one account as your primary, which is the one PayPal uses by default when you send money or make a purchase. To change your primary account, go to your wallet settings and select a different account. You can also choose which account to use each time you send money — PayPal will ask you to pick one before you confirm the payment.

What happens after your account is active

Once your identity and bank account are verified, your account is ready to use. You can send money to friends by their email address or phone number — they'll receive a notification and can accept the payment into their own PayPal account or bank account. You can also use PayPal to pay for purchases on websites that accept it, and your payment is protected by PayPal's buyer protection policy.

If someone sends you money, it lands in your PayPal balance. You can spend it on purchases, send it to friends, or transfer it to your bank account. Transfers to your bank account usually take one to three business days, depending on your bank.

PayPal sends you a monthly statement showing all your transactions. You can download it as a PDF or CSV file for your records. If you set up a Business Account, you'll also see sales reports and can generate invoices directly from PayPal.

Security settings to turn on right away

After your account is active, add two-factor authentication to protect it from hackers. Go to your settings, find "Security," and turn on two-step verification. PayPal can send you a code by text message or email each time you log in from a new device. This means even if someone gets your password, they can't access your account without that code.

You can also set up a security question and answer, which PayPal may ask if you forget your password or if there's suspicious activity on your account. Choose a question only you can answer — not something a stranger could guess from social media.

Frequently Asked Questions

How long does it take to verify my PayPal account?

Identity verification usually takes a few minutes to 24 hours. Bank account verification takes one to two business days because PayPal needs to make two small test deposits and wait for them to appear in your statement. You can use your account to send money to friends while verification is in progress, but you may not be able to receive large payments until everything is confirmed.

Can I use PayPal without a bank account?

Yes. You can link a debit card instead of a bank account. Visa, Mastercard, American Express, and Discover debit cards all work. Credit cards also work for paying for purchases, but PayPal cannot transfer money to a credit card — only to a bank account or debit card.

What if PayPal rejects my ID?

PayPal may reject your ID if the photo is blurry, the document is expired, or the name doesn't match what you entered during signup. Try uploading again with a clearer photo, or contact PayPal's support team through the app or website. They can help you troubleshoot or suggest alternative forms of ID.

Can I change my email address after I create my account?

Yes. Go to your account settings, find "Email," and click "Add email address." Enter your new email and PayPal will send a confirmation link to it. Once you confirm, you can set it as your primary email. Your old email will still be linked to your account so you can log in with either one.

Is there a fee to open a PayPal account?

No. Opening a Personal or Business account is free. You only pay fees if you receive money for goods or services (Business Account) or if you use certain features like currency conversion or international transfers. Sending money to friends and shopping online have no fees.