What you need to open a PayPal account
You can open a PayPal account in about five 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 the account itself. The account opens immediately, though some features—like sending money to friends or receiving payments—may require you to confirm your identity first by linking a payment method.
PayPal offers two account types: Personal and Business. A Personal account is what most people use for peer-to-peer transfers and online shopping. A Business account is designed for people who sell goods or services and need invoicing tools and transaction reports. You can switch between them later, so start with whichever matches what you plan to do first.
Key Takeaways
- You need an email address, a password, and one payment method (debit card, credit card, or bank account) to open a PayPal account, and it takes about five minutes.
- PayPal confirms your identity by asking you to verify a small deposit to your bank account or by checking your card details against your bank's records.
- Once your account is open, you can send money to other PayPal users immediately, but receiving money or withdrawing to your bank account may require identity verification first.
- PayPal charges no fee to open an account or to send money to other PayPal users, but does charge a fee when you send money internationally or when someone sends you money as a payment rather than a personal transfer.
Step-by-step: creating your account
Go to paypal.com and click "Sign Up" in the top right. Choose Personal or Business. Enter your email address, create a password (PayPal requires at least eight characters, including a number and a capital letter), and enter your name, address, and phone number. PayPal will send a confirmation email to the address you provided—click the link in that email to verify it.
Next, add a payment method. You can enter a debit card, credit card, or bank account number. If you use a card, PayPal will charge a small amount (usually $1 to $2) to verify it, then refund that amount within a few days. If you use a bank account, PayPal will make two small deposits to your account and ask you to enter those amounts to confirm you own the account. This process takes one to three business days.
Once you have added a payment method, your account is open and you can start using it. However, PayPal may ask you to verify your identity before you can send money to people who are not PayPal users or before you can withdraw money to your bank account. Identity verification usually involves uploading a photo of your driver's license or passport.
Linking a bank account versus a card
Linking a bank account directly is usually the better choice if you plan to withdraw money later, because PayPal transfers from your bank account to PayPal are free, and transfers from PayPal back to your bank account are also free. If you link only a card, PayPal can still withdraw from that card to fund transfers, but the card issuer may charge you a cash advance fee.
Linking a card is faster if you are in a hurry—the verification charge posts and refunds within a few days, whereas bank account verification takes longer. You can link both a card and a bank account to the same PayPal account, so there is no reason not to add both if you have them.
What happens after you verify your identity
Once PayPal has confirmed your payment method, you can send money to other PayPal users for free. You enter their email address or phone number, the amount, and whether it is a personal transfer (no fee) or a payment for goods or services (PayPal charges a small fee). The money arrives in their PayPal account within minutes.
If you want to send money to someone who does not have a PayPal account, or if you want to withdraw money from PayPal to your bank account, PayPal will ask you to verify your identity. This usually means uploading a photo of your government-issued ID. The review takes one to three business days. Until then, you can still send money to other PayPal users, but you cannot send money outside PayPal or withdraw your balance.
Fees you should know about
PayPal charges no fee to open an account, to link a payment method, or to send money to another PayPal user as a personal transfer. You also pay nothing to receive money from another PayPal user when they send it as a personal transfer.
PayPal does charge a fee when you send money internationally (the fee depends on the country and the amount), when someone sends you money as a payment for goods or services rather than a personal transfer, or when you use certain features like PayPal Credit. Fees are always shown before you confirm the transaction, so you will know the exact cost before your money leaves your account.
Keeping your account secure
Use a strong password—at least 12 characters, mixing uppercase and lowercase letters, numbers, and symbols. Do not use the same password you use for your email or bank account. PayPal offers two-factor authentication, which sends a code to your phone or email every time you log in from a new device. Turn this on in your account settings under Security.
Never share your password, and never click a link in an email claiming to be from PayPal unless you initiated the action yourself. PayPal will never ask you to confirm your password or card number by email. If you receive an email asking you to do so, report it to PayPal as phishing and delete it.
Closing or changing your account
If you want to stop using PayPal, you can close your account from the Settings menu. PayPal will ask you to withdraw any remaining balance first. If you have an outstanding balance—money you owe because you used PayPal Credit or because a transaction was reversed—you must pay it before closing.
You can also change your account type from Personal to Business (or vice versa) at any time without closing and reopening. Go to Settings, select Account Type, and choose the one you need. The change takes effect immediately.
Frequently Asked Questions
Do I need a bank account to open PayPal?
No. You can open a PayPal account with a debit card or credit card alone. However, linking a bank account later makes it easier to withdraw money without fees, so you may want to add one when you have the chance.
How long does it take to verify my identity?
Verifying a payment method (card or bank account) takes one to three business days. Verifying your identity with a government ID takes one to three business days as well. Some accounts are verified instantly, but you should assume three days and plan accordingly.
Can I have more than one PayPal account?
PayPal's terms of service say you should have only one account per person. If you need both a Personal and Business account, you can switch between them using the same email address rather than creating a second account.
What if I forget my password?
Go to paypal.com, click "Log In", then click "Forgot Password?" Enter your email address and PayPal will send you a link to reset it. Click the link, create a new password, and log in. The whole process takes a few minutes.
Can I use PayPal without a smartphone?
Yes. You can use PayPal entirely from a computer or laptop. The mobile app is optional and makes some tasks faster, but you do not need it to send money, receive money, or manage your account.