Creating a PayPal account takes about 10 minutes and requires an email address, a phone number, and either a bank account or debit card
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 plan to receive payments for goods or services). Most people start with Personal. Enter your email address, create a password, and provide your full name, date of birth, and phone number. PayPal will text a code to your phone—enter it to confirm you own that number.
Next, you'll add a payment method. This can be a debit card, credit card, or bank account. If you add a bank account, PayPal will make two small deposits to it within a few days, and you'll need to confirm the exact amounts to prove you own the account. If you use a debit or credit card, the verification is faster—PayPal charges a small amount (usually $1 to $2) and refunds it once you confirm the charge on your statement.
Once your payment method is verified, your account is active and you can send money to other PayPal users or make purchases online at stores that accept PayPal. You can also receive money if someone sends it to your email address.
Key Takeaways
- You need an email address, phone number, and either a bank account or debit card to open a PayPal account.
- PayPal will text a verification code to your phone during signup, so have your phone nearby.
- Bank account verification takes a few days because PayPal deposits two small amounts you must confirm; card verification is faster.
- A Personal account is sufficient for sending money to friends and making purchases; you only need a Business account if you plan to receive payments for selling goods or services.
What information PayPal asks for during signup
PayPal collects your legal name, date of birth, email address, phone number, and home address. The name you provide must match the name on your bank account or debit card—if it doesn't, verification will fail and you'll need to update it. Your phone number is used for two-factor authentication, which means PayPal will text you a code when you log in from a new device or browser.
When you add a bank account, PayPal will ask for your routing number and account number. These appear on the bottom left of your checks or in your bank's online portal. If you use a debit or credit card, you'll enter the card number, expiration date, and CVV (the three-digit code on the back).
Verifying your bank account versus a debit card
If you link a bank account, PayPal deposits two small amounts (usually between $0.01 and $0.99 each) into it within 1 to 3 business days. You then log into PayPal, go to your wallet, and enter both amounts exactly as they appear. Once confirmed, your bank account is verified and you can use it to send money or fund purchases. This method is free but slower.
If you link a debit card, PayPal charges a small amount (typically $1 to $2) to the card and refunds it within a few minutes. You confirm the charge by entering the exact amount you see on your card statement. This verification is instant or takes just a few hours, making it faster than bank account verification. There is no fee for this process—the charge is refunded automatically.
Credit cards can also be verified this way, but PayPal treats them differently than debit cards for some transactions. If you plan to send money to friends regularly, a bank account or debit card is more practical than a credit card.
Setting up two-factor authentication for security
Two-factor authentication (2FA) adds a second layer of security to your account. After you enter your password, PayPal sends a code to your phone via text message. You enter that code to finish logging in. This means someone who steals your password still cannot access your account without your phone.
PayPal enables 2FA by default for most accounts. You can manage it in your account settings under "Security." You can choose to receive codes by text message or through the PayPal app if you have it installed on your phone. If you lose access to your phone number, you can add a backup phone number or use security questions to regain access.
Linking multiple payment methods to your account
After your first payment method is verified, you can add more. Go to your Wallet, select "Link a card or bank account," and follow the same verification steps. You can have multiple debit cards, credit cards, and bank accounts linked at once. When you send money or make a purchase, PayPal lets you choose which payment method to use.
If you remove a payment method, PayPal keeps it on file for a short time in case a pending transaction needs it. You can permanently delete it from your account settings if you no longer want PayPal to have access to it.
What you can do once your account is active
With a verified Personal account, you can send money to anyone with a PayPal account or email address, split bills with friends, and make purchases at online stores that accept PayPal. When you send money to another PayPal user, it arrives instantly. When you send money to someone's email address (and they don't have a PayPal account yet), they receive a notification and have 30 days to claim it by creating an account.
You can also request money from others—they'll receive a notification asking them to pay you. Payments between friends are usually free if you send money as a "friend or family" transfer, but PayPal charges a fee (typically 2.99% plus $0.30) if you send money as a "goods or services" payment.
If you want to receive payments for selling items or offering services, you'll need to upgrade to a Business account or enable PayPal's seller tools in your Personal account settings. This lets customers pay you directly and gives you access to transaction records and invoicing features.
Troubleshooting common signup problems
If PayPal rejects your bank account or card during verification, the most common reason is that the name on your account doesn't match the name you provided during signup. Check that your legal name is spelled exactly the same way on both your PayPal profile and your bank or card account. If it doesn't match, update your PayPal name and try again.
If you don't receive the verification code by text message, check that you entered your phone number correctly. You can request a new code, or if you have the PayPal app installed, you can use it to generate a code instead of waiting for a text. If you still don't receive a code after multiple attempts, contact PayPal support through the Help Center on their website.
If your account is limited or locked during signup, PayPal may be asking for additional information to verify your identity. This usually means uploading a photo of your ID or providing more details about your address. Follow the prompts in your account settings to complete verification.
Frequently Asked Questions
Do I need a credit card to open a PayPal account?
No. You can use a debit card or bank account instead. A credit card is optional and not required to create or use an account. Many people link a bank account because it's free and works for both sending and receiving money.
Can I use PayPal without a phone number?
No. PayPal requires a phone number during signup for security and verification purposes. The number is used to send you a confirmation code and to set up two-factor authentication. You must have access to this phone number to complete signup.
How long does it take to verify a bank account?
Bank account verification typically takes 1 to 3 business days because PayPal must deposit two small amounts into your account. You then confirm the exact amounts in your PayPal settings. Debit card verification is much faster—usually instant or within a few hours.
What happens if I forget my PayPal password?
Click "Forgot password?" on the PayPal login page and enter your email address. PayPal will send you a link to reset your password. You'll also need to enter the verification code sent to your phone. If you can't access your email or phone, use the "Can't log in?" option to verify your identity using security questions or your ID.
Can I have more than one PayPal account?
PayPal's terms of service allow one Personal account and one Business account per person, but not multiple accounts of the same type. If you create multiple accounts, PayPal may limit or close them. If you need both a Personal and Business account, contact PayPal support to set them up properly.