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 information you provide, so have your ID ready before you start. The whole process takes about 10 minutes, though full verification—which unlocks higher sending and receiving limits—can take a few days.
You do not need to be a business owner or have a certain income level. PayPal accounts work the same way whether you are sending money to a friend or running a small business. The account itself is free to create.
Key Takeaways
- You need an email address, a government ID, and a bank account or debit card to create a PayPal account.
- The sign-up process takes about 10 minutes, but full verification of your identity can take several days.
- PayPal will ask you to confirm your email address and link a payment method before you can send or receive money.
- Your sending and receiving limits start low and increase once PayPal confirms your identity with your bank or card issuer.
- You can use PayPal to send money to friends, pay for online purchases, or receive payments from buyers or clients.
Step 1: Go to PayPal and enter your email
Visit paypal.com and click the "Sign Up" button. You will see two account type options: Personal and Business. Choose Personal unless you are setting up an account specifically to run a business. Enter your email address—this becomes your PayPal login.
PayPal will send a confirmation link to that email. Check your inbox (and spam folder) and click the link within 30 minutes. If you do not confirm within that window, you will need to start over.
Step 2: Create your password and provide your name and address
PayPal will ask you to create a password. Use something you have not used elsewhere, at least 8 characters long, with a mix of uppercase and lowercase letters, numbers, and symbols. This password protects access to your money.
Next, enter your full legal name, date of birth, and current address. PayPal uses this information to verify your identity against government records. The name must match your ID exactly—if it does not, verification will fail later. Your address should be your current residence, not a P.O. box.
Step 3: Link a bank account or debit card
PayPal requires at least one payment method on file before you can send money. You can link a U.S. bank account, a debit card, or a credit card. Linking a bank account is the fastest route to higher limits and lower fees for sending money to other people.
If you choose a bank account, PayPal will make two small deposits (usually under $1 each) to your account within 1 to 2 business days. You will then log back into PayPal and enter the exact amounts of those deposits to confirm you own the account. If you link a debit or credit card instead, PayPal will verify it instantly using your card issuer's system.
Step 4: Verify your identity with PayPal
PayPal will ask you to upload a photo of your government ID—a driver's license, passport, or state ID card. Take a clear photo of the front and back (if your ID has a back), make sure all text is readable, and upload it through the PayPal app or website. Do not send a screenshot or a photocopy; PayPal needs a photo of the physical ID.
PayPal's system checks your ID against your name, date of birth, and address. This usually takes a few minutes to a few hours, though it can take up to 48 hours. You will receive an email when verification is complete. Until then, your account will have low sending and receiving limits—usually $500 to $2,000 depending on your account type.
Step 5: Confirm your bank account or card (if applicable)
If you linked a bank account, log back into PayPal once the two small deposits appear in your bank (1 to 2 business days). Go to your wallet, find the bank account, and enter the exact dollar amounts of those deposits. PayPal will then confirm ownership and unlock higher limits.
If you linked a debit or credit card, this step happens automatically during verification. You do not need to do anything else.
What you can do once your account is set up
A new PayPal account with a linked payment method can send money to friends using their email address or phone number, pay for purchases on websites that accept PayPal, and receive money from other PayPal users. Your initial sending limit is usually $500 to $2,000 per transaction, depending on your account history and verification status.
Once PayPal confirms your identity and your bank account or card, your limits increase. A fully verified account can typically send and receive several thousand dollars per month. If you need higher limits, you can request them through your account settings, though PayPal may ask for additional information.
Common issues during account creation
If PayPal rejects your ID photo, the most common reason is glare, blurriness, or text that is not fully readable. Try again with better lighting and a steadier camera. Make sure your face is visible if your ID includes a photo, and that the expiration date is not in the past.
If your name on your ID does not match the name you entered during sign-up, PayPal will not verify you. Legal name changes, nicknames, or typos will all cause verification to fail. If this happens, contact PayPal support with a copy of your ID and ask them to update your account information before trying verification again.
If the two test deposits to your bank account do not arrive within 2 business days, your bank account number or routing number may be incorrect. Delete the account from your PayPal wallet and add it again, double-checking each digit. If deposits still do not arrive, contact your bank to confirm they are not blocking PayPal transfers.
Frequently Asked Questions
Can I create a PayPal account without a bank account?
Yes. You can link a debit card or credit card instead. PayPal will verify it instantly using your card issuer's system, and you can send and receive money right away. However, a bank account usually comes with lower fees and higher limits for peer-to-peer transfers.
What happens if I forget my PayPal password?
Go to paypal.com, click "Log In", then click "Having trouble logging in?" Enter your email address and PayPal will send a password reset link to your inbox. Click the link and create a new password. If you do not receive the email, check your spam folder or contact PayPal support.
Can I create a PayPal account if I am under 18?
No. PayPal requires you to be at least 18 years old. If you are younger, a parent or guardian can create a PayPal account and manage it on your behalf, or you can wait until you turn 18 to create your own.
How long does it take to send money after I create my account?
You can send money immediately after linking a payment method, though your initial limit will be low. If you link a bank account, you will need to wait 1 to 2 business days for the test deposits to arrive and confirm ownership before your limit increases. If you link a debit or credit card, you can send money right away.
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 the people you send money to—they only see that payment came from PayPal. However, like any online account, use a strong password and do not share your login details with anyone.