Create your account with an email and password
Go to paypal.com and click "Sign Up" in the top right corner. PayPal will ask you to choose between a Personal account (for sending money to friends and small purchases) or a Business account (if you sell goods or services). Most people start with Personal. Enter your email address, create a password at least 8 characters long, and confirm your country and date of birth. PayPal will send a confirmation email to the address you provided—click the link in that email within 24 hours to verify it.
Your password should include uppercase letters, lowercase letters, numbers, and symbols. PayPal will tell you if your password is too weak before you submit. Do not reuse a password from other accounts, especially banking or email passwords.
Key Takeaways
- You need only an email address and password to create a PayPal account; linking a bank account or card comes later and is optional for receiving money from friends.
- PayPal will ask you to confirm your email address by clicking a link they send you, which must happen within 24 hours or you will need to request a new confirmation email.
- Adding a bank account or debit card lets you fund transfers and withdraw money, but you can receive peer-to-peer payments without either one linked.
- Two-factor authentication adds a security layer by requiring a code from your phone or email each time you log in from a new device.
- Your account is ready to send and receive money as soon as email confirmation is complete, though some features require additional verification.
Add a payment method so you can fund transfers
After email confirmation, log into your account and go to "Wallet" in the top menu. Click "Link a card or bank account." You can add a debit card, credit card, or bank account. For a debit or credit card, enter the card number, expiration date, and CVV (the three-digit code on the back). For a bank account, enter your routing number and account number—you can find both at the bottom of any check you have, or log into your bank's website to locate them.
PayPal will verify the card or account by making a small deposit (usually under $1) and asking you to confirm the amount. This takes one to three business days. Once verified, that payment method is ready to use. You do not have to add a payment method to receive money from friends—only to send it or to withdraw money from your PayPal balance to your bank account.
Confirm your identity to unlock higher limits
PayPal sets sending limits based on how much information you provide. New accounts can send up to $500 per transaction and $2,000 per month without additional verification. To send more, go to "Account Settings," click "Verification," and follow the prompts. PayPal may ask for your Social Security Number (SSN), a photo of your ID, or both, depending on your account history and activity.
Providing this information takes 10 to 15 minutes and is reviewed within 24 to 48 hours. Once verified, your limits increase significantly—usually to $20,000 per transaction or higher. You will see your current limits and remaining balance in the Wallet section at any time.
Turn on two-factor authentication for security
Go to "Account Settings," then "Security," and click "Two-Factor Authentication." PayPal will offer two options: receive a code by text message (SMS) or use an authenticator app like Google Authenticator or Microsoft Authenticator. Text message is simpler if you do not already use an authenticator app. Choose one method, confirm your phone number or download the app, and PayPal will send you a test code to verify it works.
Once enabled, every time you log in from a device PayPal does not recognize, you will be asked to enter a code sent to your phone or generated by your app. This prevents someone with your password from accessing your account. You can mark a device as trusted so you do not have to enter a code every single time you use the same computer or phone.
Set up your profile so people can find you
Click your name or profile icon in the top right, then "Profile." Add a profile picture, a display name (the name friends will see when you send or receive money), and a phone number. Your display name does not have to be your legal name—you can use a nickname or first name only. Your phone number is optional but useful if you want to send money to someone using their phone number instead of their email address.
You can also add a bio or short description, though this is not required. Everything you add here is visible to people you send money to or receive money from, so choose what you are comfortable sharing.
Understand what you can and cannot do right away
As soon as your email is confirmed, you can send money to anyone with an email address or phone number, and you can receive money from friends. You can also use PayPal to pay for purchases on websites that accept it. However, you cannot withdraw money to your bank account until you have linked a bank account or debit card and verified it (which takes one to three days). You also cannot send money internationally or receive payments for goods or services until you provide additional information like your SSN or a photo ID.
If you plan to use PayPal only to receive money from friends or to pay for online purchases, you can stop after email confirmation. If you want to send money or withdraw your balance, link a payment method. If you plan to sell items or receive business payments, you will need to upgrade to a Business account and provide tax information.
Frequently Asked Questions
Do I need a credit card to open a PayPal account?
No. You need only an email address and password. A debit card or bank account is optional and only required if you want to send money or withdraw your PayPal balance to your bank. You can receive money from friends without any payment method linked.
How long does it take to verify my email?
PayPal sends a confirmation email immediately after you sign up. Click the link in that email within 24 hours. If you do not click it in time, log back into PayPal and request a new confirmation email. Verification is instant once you click the link.
What happens if I forget my password?
Go to paypal.com and click "Log In," then click "Forgot your password?" at the bottom. PayPal will send a reset link to your email address. Click that link, create a new password, and log in. The reset link expires after 10 minutes, so act quickly. If you do not receive the email, check your spam folder or request a new one.
Can I use PayPal on my phone?
Yes. Download the PayPal app from the App Store (iPhone) or Google Play (Android), then log in with your email and password. The app works the same way as the website and lets you send and receive money, check your balance, and manage your account from anywhere.
Is my money safe in PayPal?
PayPal uses encryption and fraud monitoring to protect your account. If someone sends you money by mistake or you receive a fraudulent payment, you can dispute it through the Resolution Center. PayPal also covers certain transactions under its Buyer Protection and Seller Protection policies, though these vary by transaction type.