You can transfer money from one PayPal account to another in minutes using the "Send Money" feature

PayPal lets you send money directly to another person's PayPal account by their email address or phone number. The money arrives in their account within minutes if both accounts are verified and linked to a bank account or card. There is no fee when you send money to friends and family using the "Friends and Family" payment type, though PayPal takes a small percentage if you send money as a business payment.

The process is straightforward: you log into your PayPal account, click "Send Money," enter the recipient's email or phone number, type the amount, choose your payment type, and confirm. The recipient sees the money in their PayPal balance right away, though they may need to transfer it to their own bank account if they want to use it outside PayPal.

Key Takeaways

  • Sending money between PayPal accounts to friends and family costs nothing, but business payments include a fee that PayPal deducts from the amount you send.
  • Money arrives in the recipient's PayPal account within minutes, but moving it to their bank account takes one to three business days depending on their bank.
  • Both accounts must be verified with a real name and address for the transfer to go through; unverified accounts have lower sending limits.
  • You can send money using your PayPal balance, a linked bank account, or a linked debit or credit card.

Step-by-step process for sending money to another PayPal account

Start by logging into your PayPal account on the website or mobile app. On the website, look for the "Send Money" button near the top of the page. On the mobile app, tap the paper airplane icon at the bottom of the screen.

Enter the recipient's email address or phone number in the field that appears. PayPal will show you if that person has a PayPal account. Type the amount you want to send, then select your payment type: "Friends and Family" if you are sending money to someone you know personally, or "Goods and Services" if you are paying for something someone sold you. Friends and Family transfers are free; Goods and Services transfers cost 2.2% plus $0.30 (the fee comes out of what you send, so the recipient gets less than you entered).

Choose which of your linked payment methods to use: your PayPal balance, a bank account, or a debit or credit card. Review the details, then click "Send" or "Send Money Now." PayPal will ask you to confirm the amount and recipient one more time. Once you confirm, the money is on its way.

What happens after you send the money

The recipient's PayPal account shows the incoming transfer within minutes. They receive a notification by email or through the PayPal app that money has arrived. At this point, they can use the balance to send money to someone else, make a purchase on a website that accepts PayPal, or transfer it to their own bank account.

If the recipient wants to move the money to their bank account, that step takes one to three business days depending on their bank's processing speed. PayPal calls this a "standard transfer." Some banks are faster than others; a few process transfers the same day, but most take two to three business days. The recipient controls this timing—they initiate the bank transfer from their own PayPal account whenever they choose.

Fees and payment method options

Sending money to friends and family costs nothing. Sending money as a business payment (for goods or services) costs 2.2% of the amount plus $0.30. This fee is deducted from what you send, so if you send $100 as a business payment, the recipient gets $97.48 and PayPal keeps $2.52.

You can fund the transfer from three sources: your PayPal balance (money already in your account), a linked bank account, or a linked debit or credit card. If you use a credit card, some card issuers treat PayPal transfers as cash advances and charge an extra fee—check your card's terms. Using your PayPal balance or a bank account avoids this extra charge.

Account verification and sending limits

PayPal requires both accounts to be verified before you can send money. Verification means PayPal has confirmed your real name, address, and identity. When you first create a PayPal account, you can send a small amount of money, but PayPal will limit how much you can send until you verify your account by confirming your email address and adding a payment method (a bank account or card).

Unverified accounts have lower sending limits—usually $500 per transaction and $1,000 per month, though these limits vary. Once you verify your account, these limits increase significantly. To verify, go to your account settings, look for "Verification" or "Confirm Your Identity," and follow PayPal's steps. This usually takes a few minutes to a few hours.

Common reasons a transfer might fail or be delayed

A transfer can fail if the recipient's email address or phone number is wrong, if either account is not verified, if you do not have enough money in your chosen payment method, or if PayPal flags the transaction as unusual. If PayPal suspects fraud, it may hold the transfer for review, which can take 24 hours or longer.

If you send money to the wrong person by mistake, you can cancel the transfer if they have not claimed it yet. Go to your transaction history, find the transfer, and look for a "Cancel" option. If they have already claimed the money, you will need to contact them directly and ask them to send it back. PayPal cannot force a refund once the recipient has accepted the money.

Transferring money to your own PayPal accounts

If you have more than one PayPal account and want to move money between them, use the same "Send Money" process. Log into the account you are sending from, enter the email address of your other account, and send the money as a Friends and Family transfer (no fee). The money arrives in your other account within minutes.

Alternatively, you can transfer money from one of your accounts to your bank account, then transfer it from your bank account to your other PayPal account. This takes longer (one to three business days each way) and is unnecessary—the direct PayPal-to-PayPal transfer is faster and simpler.

Frequently Asked Questions

How long does it take for money to show up in the recipient's PayPal account?

Money appears in the recipient's PayPal account within minutes, usually less than five. They will see it in their balance right away and receive a notification. If they want to move it to their bank account, that step takes one to three business days depending on their bank.

Can I send money to someone who does not have a PayPal account yet?

No, you need the recipient's email address or phone number associated with an existing PayPal account. If they do not have one, they will need to create an account first. You can send them a link to sign up, then send the money once their account is active.

What is the difference between Friends and Family and Goods and Services?

Friends and Family transfers are free and are meant for personal payments—lending money to a friend, splitting rent, paying back a loan. Goods and Services transfers cost 2.2% plus $0.30 and are meant for buying something or paying for a service. Use Friends and Family for personal transfers to avoid the fee.

What if PayPal holds my transfer for review?

PayPal sometimes holds transfers for 24 hours or longer if the transaction looks unusual—a large amount, a new recipient, or activity that differs from your normal pattern. You will see a message in your account explaining the hold. The money will go through once the review is complete, usually within a day.

Can I cancel a transfer after I send it?

Yes, but only if the recipient has not claimed the money yet. Go to your transaction history, find the transfer, and click "Cancel." If the recipient has already accepted it, you cannot cancel it through PayPal—you will need to ask them to send the money back to you.