How to set up a PayPal account to receive money

If someone needs to send you money, or if you’re receiving payments for your business, you may be wondering how to set up PayPal to receive money conveniently.

It's a pretty simple process, but you'll need to provide some personal information like your name and address as well as pass a few verification steps.

This guide covers creating a PayPal account for personal or business use online as well as how to set up a PayPal account to receive money using the app.

We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.

Learn more 🔎

Table of contents
How to set up a personal PayPal account: Step by step Send low cost international transfers with Wise How to set up a PayPal business account: Step by step How to set up a PayPal account in the app How long does it take to receive money on PayPal? Are there fees to receive money on PayPal? Setting up a PayPal account: FAQs

How to set up a personal PayPal account: Step by step

Getting a personal PayPal account set up to receive money is a relatively straightforward process.

And if you’re wondering how long it takes to set up a PayPal account to receive money, the good news is that the main steps only take a few minutes, and you can get paid straight away once your account is up and running. Here’s what to do.

1. Register a PayPal personal account

The first step is to sign up for PayPal online or through the PayPal app.

If someone has sent you a payment on PayPal, they’ll be provided with a link they can send you directly to confirm the money is there and prompt you to create a PayPal account.

You can either click this link (as long as you trust the sender) or simply open a new browser page and search for PayPal directly.

Here’s how to register online with PayPal:

Step 1. Open the PayPal desktop site, or click the link in the email you’ve received confirming a pending PayPal payment

Step 2. Click Sign up for a PayPal account

Step 3. Choose Personal when asked what account type you want, and click Get Started

Step 4. Enter your personal information and create a password, following the prompts, and click Continue

Step 5. Follow the instructions to complete your account sign-up

The sign-up for a PayPal account is pretty easy, but to get full access to all of the features of the online payment system, you'll likely need to go through some extra verification steps.

2. Provide your personal information

When setting up your PayPal account, you'll need to share some basic details about yourself. PayPal requires¹:

• Your full name
• Home address
• Phone number
• Email address

You'll also create a secure password and select 2 security questions.¹

These security questions act as an extra layer of protection for your account, so choose questions only you would know the answers to.

3. Verify your information

PayPal takes security seriously, so they may ask you to confirm your identity during the setup process or when they notice unusual activity on your account.

PayPal uses a few different verification methods, and you'll typically be given options to choose from²:

• Text message verification
• Phone call verification
• Confirming personal details
• Answering your security questions
• Verifying your credit card number
• Email confirmation

If verification doesn't work on your first try, PayPal provides troubleshooting guidance. After multiple unsuccessful attempts, you'll need to wait 24 hours before trying again, or you can call PayPal directly for assistance.²

During the PayPal account setup, you'll be asked to provide details like your phone number and email, so make sure to provide the ones you have access to for future verifications.

4. Add your payment method

Once your account is created, you can receive money on PayPal right away.

However, to pay someone with PayPal, you'll need to add a payment method such as a debit card, credit card, or bank account.³

You can also add money directly to your PayPal balance, which acts like a digital wallet within your account. This balance can be used to make payments without drawing from your linked cards or bank account.

However, to add funds to your PayPal balance, you'll need to verify your identity using a government-issued ID.⁴

Learn more about adding money to PayPal in our full guide.

5. Verify your account

While PayPal only asks for essential information during the new account signup, they're legally required to collect additional details as you use their services, depending on what features you want to use.

You can verify your account by⁵:

• Adding and confirming a bank account
• Applying for and getting approved for a PayPal Credit product

Verifying your account removes a few different limitations and gives you access to more features.

For example, without verification, you can only send up to 4,000 USD in a single payment, and there's a cap on your total sending amount.⁶

With a verified account, you can send up to 60,000 USD in one transaction (though PayPal may limit this to 10,000 USD depending on the circumstances), and there's no limit on your total sending capacity.⁶

What is a PayPal.Me link?

A PayPal.Me link is a personalized web address that you can share with people who need to send money to your PayPal account. Instead of sharing your email address, you can just send your free PayPal.Me link. It'll look something like "paypal.me/YourName."

When someone clicks it, they're taken to a page where they can enter an amount and send you money.

Send low cost international transfers with Wise

A smart option if you’re sending money overseas: meet Wise.

Register a Wise account online or in the Wise app, and send money to 140+ countries, with the mid-market exchange rate and low, transparent fees.

Wise always shows you the amount you’re paying and how much your recipient will get — and you can even compare against other providers on the Wise app or desktop site.

If another service is cheaper for your particular payment, you’ll be shown — so you can’t lose.

Get started with Wise

See how Wise compares with international bank transfers in our full guide

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

How to set up a PayPal business account: Step by step

If you want to receive money to your PayPal account for business purposes, a PayPal business account may be more suitable.

Business accounts have different features and fees compared to personal accounts, so make sure you’re picking the right type of PayPal account for your specific needs. Here’s how to go about setting up a PayPal business account.

1. Register a PayPal business account

To get a PayPal business account, first register online with PayPal:

Step 1. Open the PayPal website

Step 2. Click Sign up for a PayPal account

Step 3. Choose Business when asked what account type you want, and click Get Started

Step 4. Enter your personal information and create a password, following the prompts, and click Continue

Step 5. You’ll then need to add and confirm a phone number and email address as well as other details

Step 6. Follow the instructions to complete your account sign-up

You should have all of your business information on hand when you start the process, since PayPal will ask for quite a few things to verify your business.

2. Provide your business information

If you're wondering, "How do I get a PayPal account for my business?", keep in mind that you'll need more detailed information than for a personal account.

You'll need to provide⁷:

• Your full legal name
• Email address (this must be unique to your business account)
• Secure password
• Tax ID number or Social Security Number (SSN)
• Business description
• Business bank account details

Also, each PayPal account needs its own unique email address. If you already have a personal PayPal account, you'll need to use a different email for your business account.

3. Verify your information

You'll need to confirm your identity through methods like²:

• Text message or phone call verification
• Confirming personal and business details
• Answering security questions
• Verifying linked payment methods

This is similar to personal accounts, so make sure to provide an accurate email and phone number during the PayPal account setup process.

4. Add your payment method

To get your PayPal business account fully functional, you'll need to add a payment method such as a business bank account or a business debit or credit card. PayPal accepts Visa®, Mastercard®, Discover®, and American Express® cards.³

However, keep in mind that using your card to send money with PayPal usually costs a lot in fees.

5. Verify your account

You'll likely need to verify your PayPal business account to unlock all features. Similar to a personal PayPal account, you can get verified by adding and confirming a bank account or applying for and being approved for a PayPal Credit product.⁵

PayPal may also request additional business-related documentation as your account activity grows. They sometimes ask for extra information about your business operations, such as supplier details, invoices, and bank statements.⁸

This typically happens when they notice changes in your selling patterns or an increase in customer complaints.

💡 Need to make a business payment? With the Wise Business account, you can send up to 1,000,000 USD per transfer from licensed states.

Some key features of Wise Business include:

Better visibility and organization of business finances; this is helpful for account reconciliations and audits Major local account details for a simple one-off fee to receive international payments with ease No monthly account fees or minimum balance requirements Receive payments from e-commerce platforms such as Amazon or via Stripe Create invoices using the free Wise invoice generator or invoice templates Accounting integrations, including a QuickBooks Bill Pay connection Access to BatchTransfer

Discover the difference between
Wise Business vs. Personal

How to set up a PayPal account in the app

You can also set up a PayPal US account in the PayPal app, whether you want a personal or business account.

The process is similar for both, and you’ll be guided every step of the way by on-screen prompts. Here are the basic steps to take:

Step 1. Download the PayPal app on Android or iOS and click Sign up for a PayPal account

Step 2. Choose Personal or Business depending on which account type you want, and click Get Started

Step 3. Enter your personal information (or business information if creating a business account) and create a secure password, then tap Continue

Step 4. Add and confirm your phone number and email address when prompted

Step 5. Complete the verification process using one of the methods provided (text, call, or email)

Step 6. Add a payment method, such as a bank account, debit card, or credit card, to enable sending payments

Step 7. Verify your account by confirming your bank account or completing additional identity verification steps

The main advantage of using the app is convenience, since you can manage your payments from your phone. You can also always use both the desktop and the app, depending on what you need at the moment.

How long does it take to receive money on PayPal?

When someone sends you money through PayPal using their PayPal balance, the funds typically appear in your account right away. The same applies to credit and debit cards.

However, once you have the money in your account, you may want to transfer it to your bank. This can take a couple of business days.⁹

Alternatively, you can keep the money in your PayPal balance for future transactions or to shop and pay for purchases.

Are there fees to receive money on PayPal?

For personal PayPal accounts, receiving money is generally free in most situations.

However, you'll pay fees when you send money both domestically and internationally:

Transaction	Fee¹⁰
PayPal balance or bank account (domestic)	Free
Cards (domestic)	2.90% + fixed fee
PayPal balance or bank account (international)	5%, capped at 4.99 USD
Cards (international)	5% (capped at 4.99 USD) + 2.90% + fixed fee
Currency exchange rate markup	3% to 4%

So, if you're wondering how to receive money on PayPal, someone will always pay a fee, but it's usually the sender. However, you can sometimes receive less money than you expect because of the currency exchange rate markup (for international transfers).

Wise can help you get a better deal on currency conversion. You can convert over 40 currencies at the standard mid-market exchange rate, and we'll show you the fees upfront so you know exactly how much you're paying.

🚀 Get started with Wise

For business PayPal accounts, you'll typically pay a fee for receiving money for your goods or services. The fee structure is quite complicated and depends on how you're receiving the payment.

For example, here's what you'll pay for receiving money on PayPal with domestic transactions:

Payment type	Rate¹¹
PayPal checkout	3.49% + fixed fee
QR code transactions	2.29% + fixed fee
Pay with Venmo	3.49% + fixed fee
Send/receive money for Goods and Services	2.99%
PayPal Pay Later options	4.99% + fixed fee
Additional fee for all international transactions	1.50%

When you receive money in a different currency than your account's primary currency, PayPal applies a currency conversion spread on top of the mid-market rate you see on Google.

This markup is 3% to 4% depending on the transaction, and can cost you quite a lot of money since it has no cap.¹⁰

For example, if the USD-to-EUR exchange rate is 1.10, PayPal might use a rate of 1.14. This means you'll receive less money even if you don't pay a transfer fee.

Setting up a PayPal account: FAQs

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How do you set up a PayPal account to receive money from games?

You'll need to follow the same process as with any other PayPal account setup. You'll create either a personal or business account, depending on whether you're receiving casual payments from friends or running a gaming business.

Many gaming platforms integrate directly with PayPal, so once your account is set up and verified, you can connect it to these services.

How do I receive money on PayPal from a friend?

Once you have a PayPal account set up, you can share your email address or PayPal.Me link with your friend, and they can send you money. If they mark it as a personal payment (friends and family), there are typically no fees for you. However, you may receive less money than you expect due to the currency exchange rate markup on international transfers.

Do I need to link a bank account to PayPal to receive money?

No, you don't need to link a bank account to receive money on PayPal. However, you'll likely want to link a bank account eventually to withdraw money from PayPal or if you want to verify your account.

Without a linked bank account, you can still spend your PayPal balance for online purchases or send money to others, but you can't easily get cash out.

Is PayPal safe to receive money from strangers?

Overall, PayPal is safe, but it's important to watch out for scams when you're dealing with strangers on any platform. Legitimate payments will show up in your PayPal account immediately with no strings attached. Be wary of overpayments, requests to send money back, or payments that come with unusual instructions.

Sources

1. PayPal - What information is required to open a personal PayPal account?
2. PayPal - Why do I have to complete a security check?
3. PayPal - What payment methods can I use with PayPal?
4. PayPal - Why do I have to confirm my identity to hold money in my PayPal balance?
5. PayPal - How do I verify my PayPal account?
6. PayPal - What’s the maximum amount I can send with my PayPal account?
7. PayPal - Open a business account online
8. PayPal - Why is PayPal requesting information about my business?
9. PayPal - Where’s my withdrawal?
10. PayPal - PayPal consumer fees
11. PayPal - PayPal merchant fees

Sources checked 09/16/2025