What you need to create a PayPal account

You can open a PayPal account in about 15 minutes with an email address, a password, and either a debit card, credit card, or bank account number. PayPal does not charge you to create an account. You will need to verify your identity before you can send money or receive payments above small amounts, which means having a valid government ID and a phone number PayPal can text.

PayPal offers two account types: Personal and Business. A Personal account is free and lets you send money to friends, pay for online purchases, and receive payments. A Business account costs nothing to open but charges fees when you receive payments from customers — useful if you are selling items or offering services. Most people start with Personal.

You do not need to link a bank account or card right away. You can create the account first, then add payment methods later when you actually need to send money or make a purchase.

Key Takeaways

  • You need only an email address and password to open a PayPal account; linking a card or bank account comes after.
  • PayPal will ask you to verify your identity with a government ID and phone number before you can send or receive large amounts.
  • Personal accounts are free; Business accounts charge fees only when you receive customer payments, not when you send money.
  • The entire signup process takes 10 to 15 minutes, and you can start using your account to receive money the same day.

Step-by-step signup on the PayPal website

Go to paypal.com and click "Sign Up" in the top right corner. Choose whether you want a Personal or Business account — you can change this later, so pick Personal if you are unsure. Enter your email address, create a password at least 8 characters long, and enter your date of birth. PayPal will send a confirmation email to the address you provided; open it and click the link inside to verify your email.

Next, PayPal asks for your name, address, and phone number. Use the address where you receive mail. Enter your phone number exactly as it appears on your phone bill, because PayPal may text a code to that number to confirm it is really you. After you submit this information, PayPal will tell you whether your account is ready to use or whether you need to verify your identity with an ID.

If PayPal asks for identity verification, you will need 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, make sure all text is readable, and upload both images. PayPal usually approves these within a few minutes, though it can take up to 24 hours.

Adding a payment method: card or bank account

Once your account is open, you can add a debit card, credit card, or bank account. Click "Wallet" at the top of your PayPal page, then "Link a card or bank account." For a card, enter the 16-digit number, expiration date, and three-digit security code on the back. For a bank account, you will need your routing number and account number, which you can find at the bottom of any check or in your bank's online portal.

PayPal will verify the card or account by charging a small amount — usually between $0.01 and $2.00 — and then crediting it back. This takes one to two business days. Once verified, that payment method is ready to use. You can add multiple cards or bank accounts to the same PayPal account and choose which one to use each time you send money.

If you plan only to receive money from others, you do not need to add a payment method at all. You can leave your account empty and let PayPal hold the money until you decide what to do with it.

Signing up on the PayPal mobile app

The PayPal app (available on iPhone and Android) has the same signup process as the website. Open the app, tap "Sign Up," and follow the same steps: email, password, date of birth, name, address, and phone number. The app will ask for identity verification the same way the website does. Everything you set up in the app is linked to the same account you would create on the website — you only have one PayPal account, whether you use the app or the website.

Many people find the app easier for sending money to friends because you can search for them by name or phone number, and the app remembers people you have sent money to before. The app also shows your balance and transaction history in one place, and you can receive notifications when money arrives.

What happens after you verify your identity

Once PayPal confirms your ID, your account moves from a limited account to a fully verified account. This means you can send up to $20,000 per transaction and receive unlimited payments. Before verification, you can still use PayPal, but there are limits on how much you can send or receive in a single transaction or over a month.

PayPal may ask you to verify your identity again if you change your address, add a new bank account, or if the company detects unusual activity. This is a security measure to prevent fraud. If PayPal asks for verification a second time, the process is the same: upload a photo of your ID and wait for approval.

After verification, you can also set up two-factor authentication, which adds an extra layer of security. Go to Settings, then Security, and turn on two-factor authentication. PayPal will text a code to your phone every time someone tries to log into your account from a new device.

Sending money to friends and receiving payments

To send money to a friend, click "Send Money" on the PayPal website or tap the send icon in the app. Enter your friend's email address or phone number, the amount, and whether it is for friends and family or for goods and services. If you choose "Friends and Family," PayPal does not charge a fee, but the recipient cannot dispute the payment if something goes wrong. If you choose "Goods and Services," PayPal charges a fee (usually 2.9% plus $0.30), but the recipient has buyer protection.

To receive money, share your PayPal email address or phone number with the person sending it. They can send money to you through their own PayPal account, and the money will appear in your PayPal balance within minutes. You can then leave it there, transfer it to your bank account (which takes one to three business days), or use it to pay for something else.

Keeping your account secure

Use a password that is at least 12 characters long and includes uppercase letters, numbers, and symbols. Do not use the same password you use for your email or bank account. Write it down in a safe place or use a password manager like Bitwarden or 1Password to store it.

Never share your PayPal password, and be suspicious of emails claiming to be from PayPal that ask you to click a link or log in. PayPal will never ask for your password by email. If you receive a suspicious email, forward it to spoof@paypal.com and delete it. Check your account regularly for transactions you do not recognize, and report them to PayPal immediately by clicking the transaction and selecting "Report a Problem."

Turn on two-factor authentication as soon as your account is verified. This means PayPal will text a code to your phone every time someone tries to log in from a new device, even if they have your password. It takes 30 seconds to set up and stops most account takeovers.

Frequently Asked Questions

Can I use PayPal without a bank account or credit card?

Yes. You can create a PayPal account with only an email address and receive money from others. To send money, you will need to link a card or bank account, but you can wait until you actually need to send something before you do that.

How long does it take to verify my identity?

Most identity verifications are approved within a few minutes. If PayPal needs to review your documents more carefully, it can take up to 24 hours. You can use your account to receive money while verification is pending; you just cannot send large amounts until it is complete.

What if PayPal rejects my ID photo?

Make sure the photo is clear, well-lit, and shows all four corners of your ID. The text must be readable. If it is rejected again, try uploading a photo taken from a different angle or in different lighting. If you keep having trouble, contact PayPal support through the app or website and ask for help.

Can I have more than one PayPal account?

PayPal allows one Personal account and one Business account per person. If you try to create a second account with the same name or email, PayPal will link it to your existing account. Using multiple accounts to avoid limits or hide activity violates PayPal's terms and can result in your accounts being closed.

Is it safe to link my bank account to PayPal?

Yes, if you follow basic security practices. PayPal uses encryption to protect your bank account number, and you can revoke access at any time by going to Settings and removing the account. Never share your online banking password with PayPal — PayPal only needs your routing number and account number, which you can find on a check.