What you need to create a PayPal account

You need an email address, a phone number, and either a bank account or debit card. PayPal will verify both your email and phone before you can send or receive money. If you're linking a bank account, have your routing number and account number ready—you can find both on a check or in your online banking portal. If you're using a debit card, have the card itself in front of you.

You do not need a Social Security number to open the account, but PayPal will ask for one later if you plan to receive money regularly or move large amounts. For now, just have your contact information and payment method ready.

Key Takeaways

  • You can create a PayPal account in minutes with just an email, phone number, and a bank account or debit card.
  • PayPal sends a verification code to your email and phone—you must confirm both before the account is active.
  • Linking a bank account takes one to two business days to confirm; a debit card confirms instantly.
  • Your account starts with limited sending and receiving limits until PayPal verifies your identity with additional information.
  • You can send money to friends, pay online merchants, or request money from others as soon as verification is complete.

Step-by-step account creation

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 paying bills) or a Business account (if you're selling goods or services). Choose Personal unless you're running a business. Enter your email address, create a password at least 8 characters long, and enter your full name and date of birth.

Next, enter your phone number and address. PayPal will send a six-digit code to your email and a separate code to your phone. Check both your email inbox and text messages, and enter each code when prompted. This step usually takes less than a minute. Once both codes are confirmed, your account exists but is not yet fully active for sending and receiving money.

Linking your bank account or debit card

After email and phone verification, PayPal will ask you to add a payment method. You can link a bank account or a debit card. If you choose a bank account, enter your routing number and account number. PayPal will make two small deposits to your account (usually $0.01 and $0.02) within one to two business days. You then log back into PayPal, go to your wallet, and confirm the exact amounts of those deposits. This confirms you own the account.

If you use a debit card instead, enter the card number, expiration date, and CVV. PayPal confirms the card instantly by charging a small amount (usually $1.95) and then refunding it within minutes. A debit card is faster but offers less fraud protection than a bank account. Once your payment method is confirmed, you can start sending and receiving money.

Understanding your initial sending and receiving limits

New PayPal accounts start with a limited sending amount—typically $500 to $2,000 per transaction, depending on your account history and the payment method you linked. This limit exists to protect PayPal from fraud. As you use the account and build a history of successful transactions, PayPal raises your limit automatically over weeks or months.

Receiving money has fewer restrictions. Friends can send you money with almost no limit from day one. However, if you receive money regularly or in large amounts, PayPal will eventually ask for additional identity verification—usually a photo ID and sometimes a tax ID if you're receiving payments for work or sales.

Sending money to friends and family

Once your account is active, click "Send Money" on the home page. Enter the recipient's email address or phone number, the amount, and choose "Friends and Family" as the payment type. Friends and Family transfers are free when you send from your bank account or PayPal balance. If you send from a debit or credit card, PayPal charges a small percentage (usually 1% to 3%, depending on your country).

The recipient will receive a notification and can accept the money into their PayPal account or have it sent to their bank account. If they don't have a PayPal account yet, they can create one to claim the money. Transfers from a bank account usually arrive within one to three business days; transfers from a PayPal balance arrive instantly.

Requesting money from others

Click "Request Money" instead of "Send Money." Enter the email address or phone number of the person who owes you money, the amount, and a description of what it's for (rent split, dinner, loan repayment, etc.). PayPal sends them a notification with a button to pay you. They can pay from their PayPal account, bank account, or debit card. You'll see the money in your PayPal balance as soon as they confirm payment.

Requesting money is useful when you're splitting bills or collecting money from a group. The person paying can see exactly what the payment is for, and you have a record of the transaction.

Keeping your account secure

Turn on two-factor authentication immediately. Go to Settings, click Security, and select "Security Key" or "Authentication App" (Google Authenticator or Microsoft Authenticator work well). This means that even if someone gets your password, they cannot log in without a code from your phone. Do not use SMS text codes alone—they are less secure.

Never share your password, and do not log into PayPal on a public Wi-Fi network without a VPN. If you see a transaction you did not make, report it to PayPal within 60 days. PayPal covers unauthorized transactions on debit and credit cards, and disputes on bank transfers usually resolve within 10 business days.

Frequently Asked Questions

Do I need a bank account to use PayPal?

No. You can link a debit card instead and start sending money immediately. However, a bank account offers better fraud protection and no fees for Friends and Family transfers. If you only plan to receive money from friends, you do not need either—they can send to your email address alone.

How long does it take to verify my account?

Email and phone verification takes minutes. If you link a debit card, you're ready to send money within an hour. If you link a bank account, you must wait one to two business days for the test deposits to arrive, then confirm them. After that, you can send and receive immediately.

What happens if I forget my password?

Click "Forgot Password" on the login page. PayPal sends a reset link to your email. Click the link, create a new password, and log in. If you cannot access your email, contact PayPal support through the Help Center and they will verify your identity using your phone number and the last four digits of your linked card.

Can I use PayPal to pay bills?

Yes. Some billers (utilities, insurance companies, subscription services) accept PayPal directly at checkout. For others, you can use PayPal's Bill Pay feature to send a check from your PayPal balance to any address. This takes three to five business days and costs nothing.

What's the difference between Friends and Family and Goods and Services?

Friends and Family is free and has no buyer protection—use it only for people you trust. Goods and Services includes buyer and seller protection but charges a fee (usually 2.2% plus $0.30 per transaction). Use Goods and Services if you're paying for something you ordered online or if you're selling something.