PayPal lets you send money to anyone with an email address or phone number, and the recipient gets it in their PayPal account or linked bank account within minutes to a few business days

PayPal is a digital wallet and payment service owned by PayPal, Inc. When you send money through PayPal, you're moving funds from your PayPal account (which you link to a bank account, debit card, or credit card) to someone else's PayPal account. The money doesn't go through the traditional banking system the way a wire transfer does — it stays within PayPal's network until the recipient withdraws it to their own bank account.

The speed and cost depend on whether you're sending money domestically (within the US) or internationally, and whether the recipient has a PayPal account already. Domestic transfers between PayPal users are usually free and arrive within minutes. International transfers cost a fee and take longer.

Key Takeaways

  • You need a PayPal account linked to a bank account, debit card, or credit card to send money, and the recipient needs either a PayPal account or a valid email address.
  • Sending money to another PayPal user in the US is free and typically arrives within minutes if both accounts are verified.
  • International transfers through PayPal charge a fee (usually 2% of the amount plus a flat fee) and take one to three business days.
  • PayPal distinguishes between "friends and family" transfers (no buyer protection, lower fees) and "goods and services" transfers (fees are higher but include dispute resolution).
  • The recipient can receive money directly into their PayPal account or request a withdrawal to their linked bank account.

Setting up your PayPal account and funding source

Before you send money, you need a PayPal account. Go to paypal.com, click "Sign Up," and choose whether you want a Personal or Business account. Personal accounts are for everyday transfers; Business accounts are for people who sell goods or services. You'll enter your name, email, and password, then verify your email address by clicking the link PayPal sends you.

Next, link a funding source. PayPal accepts bank accounts, debit cards, and credit cards. To link a bank account, you'll provide your routing number and account number (found on the bottom left of your checks). PayPal will deposit two small amounts into that account — usually within three to five business days — and you'll confirm those amounts in your PayPal settings to verify you own the account. For a debit or credit card, you just enter the card number, expiration date, and CVV.

Your account is now ready to send money. PayPal will ask you to verify your identity before you can send large amounts; this usually means providing your Social Security number and date of birth. Verification takes a few minutes and is a one-time step.

Sending money to someone with a PayPal account

Log into your PayPal account and click "Send Money" (or "Transfer Money" on the mobile app). Enter the recipient's email address or phone number associated with their PayPal account. PayPal will confirm whether that person has an active account.

Enter the amount you want to send. PayPal will show you the total, including any fees if you're sending internationally. Choose whether this is a "friends and family" transfer or a "goods and services" transfer. Friends and family transfers are free domestically and have no buyer protection — use this when you're sending money to someone you know personally. Goods and services transfers include a fee (usually 2.2% plus $0.30 for domestic transfers) but include PayPal's dispute resolution if something goes wrong — use this if you're paying for something you're buying.

Add a note if you want (optional), review the details, and click "Send." The money leaves your PayPal account when ready. If the recipient's account is verified, they'll see the money in their PayPal balance within minutes. If their account is not verified, PayPal will hold the money for up to 21 days while they confirm their identity.

Sending money internationally

PayPal's international transfer service is called PayPal International Money Transfer. The process is the same as a domestic transfer, but PayPal charges a fee and the money takes longer to arrive.

The fee structure varies by country. For most transfers from the US, PayPal charges 2% of the amount plus a flat fee (usually $0.99 to $2.99, depending on the destination country). You'll see the exact fee before you confirm the transfer. The recipient's bank may also charge a fee to receive the money, though this is outside PayPal's control.

International transfers typically take one to three business days. The recipient receives the money in their local currency if they're in a country where PayPal operates; otherwise, they receive it in US dollars and their bank converts it. PayPal provides an exchange rate that includes a markup — it's usually not the best rate available, so if you're sending a large amount, compare it to a dedicated international transfer service.

What happens when the recipient doesn't have PayPal

If you send money to someone who doesn't have a PayPal account, PayPal will send them an email or SMS asking them to claim the money. They have 30 days to open a PayPal account and accept the transfer. If they don't claim it within 30 days, the money returns to your account.

This is slower than sending to someone who already has PayPal, so it's worth checking whether the person you're sending to has an account first. If they don't and they're unlikely to open one, a wire transfer through your bank or another service might be faster.

Withdrawing money from PayPal to a bank account

If you receive money through PayPal and want it in your bank account instead of your PayPal balance, you can withdraw it. Log into PayPal, go to "Wallet," and click "Transfer Money." Choose "Transfer to your bank," select the bank account you want the money to go to, enter the amount, and confirm.

Standard withdrawals take one to three business days and are free. PayPal also offers "when ready Transfer" to a debit card for a fee of 1% of the amount (minimum $0.25, maximum $25 per transfer). when ready transfers arrive within 30 minutes.

Fees and limits

Domestic transfers between PayPal users are free if you choose "friends and family." If you choose "goods and services," PayPal charges 2.2% of the amount plus $0.30. International transfers cost 2% plus a flat fee that depends on the destination country.

PayPal sets sending limits based on your account age and verification status. New, unverified accounts can send up to $500 per transaction and $5,000 per month. Once you verify your identity, these limits increase significantly — usually to $20,000 per transaction and higher monthly limits. If you need to send more than your limit allows, contact PayPal support to request a limit increase.

Frequently Asked Questions

Can I send money through PayPal if I don't have a bank account?

Yes. You can link a debit card or credit card to PayPal instead of a bank account. The process is the same — enter your card details and you're ready to send. Keep in mind that if you use a credit card, PayPal may treat it as a cash advance, and your credit card company may charge fees.

How long does it take for money to arrive in PayPal?

Domestic transfers to another PayPal user arrive within minutes if both accounts are verified. If the recipient's account is not verified, PayPal holds the money for up to 21 days. International transfers take one to three business days.

What's the difference between friends and family and goods and services?

Friends and family transfers are free domestically and have no buyer protection — PayPal won't help if there's a dispute. Goods and services transfers charge a fee but include PayPal's dispute resolution. Use friends and family for personal transfers; use goods and services if you're paying for something you're buying.

Can I cancel a PayPal transfer after I send it?

If the recipient hasn't claimed the money yet, you can cancel it and the funds return to your account. Once the recipient claims it, you can't cancel it — you'd have to ask them to send it back. If there's a dispute, you can file a claim through PayPal's resolution center.

Is PayPal safe for sending money?

PayPal uses encryption and fraud monitoring to protect your account. Your bank account details are not shared with the recipient. However, PayPal is not a bank, so your money is not FDIC insured while it sits in your PayPal balance. Withdraw it to your bank account if you want that protection.