Are you looking to start an online business or want to make money online? Then you need a medium to send or receive payments.  Making a payment is easy these days. You can use your bank credit card or debit card. But your bank does not allow you to receive online payments internationally. Even if the banks allowed it is a very long procedure to activate the service on your account. A simpler way to do that is to create a PayPal account. In this article, we will talk about how to create a Paypal account step by step and how to use Paypal in India.

income from blog

First Lets discuss what is PayPal account and how it works.

What is PayPal Account:

PayPal is an American company established in 1998. It deals in online payments all over the world. PayPal supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders.


It is a kind of online bank which allows you to send or receive payments all over the world instantly. Paypal is the most trusted service when it comes to sending or receiving money overseas. If you are a blogger then you definitely need a Paypal account to most of the advertising networks makes payments using Paypal.

Even though there are alternatives to Paypal like Payza and other good payment gateways as well but PayPal is most convenient and preferred all over the world.

Also, Read—— How to Create an Adsense Account.

Before getting into how to create a PayPal account. Let us check out some benefits of PayPal account.

Benefits of creating a Paypal Account:

Here are some benefits of creating a PayPal account.

  • You can make online payments without disclosing your credit card or debit card details using PayPal.
  • You will be able to make overseas payments using your debit cards only.
  • You can receive payments from overseas.
  • You can make mass payments using Paypal Account
  • Paypal allows you to create and send the invoice to your client directly from the account.

Prerequisite to create a PayPal account:

You just need to two things to create a Paypal account. One Bank account and a PAN card.

  • Bank Account:

    You need a bank account, in order to verify your PayPal Account. If you don’t add your bank details to Paypal account you will be only able to make payment on Paypal. But your PayPal account will be treated as unverified PayPal account until you don’t add bank details on it. The unverified bank account has certain limitation in sending and receiving money. Also, as per RBI rule, you can only withdraw money from your PayPal account into your bank account.

  • PAN Card

    You definitely need a PAN card to create a PayPal account. If you don’t have a PAN card you have to apply for it immediately as Paypal only accepts bank details if you provide PAN card details with your bank details.

Steps To Create a PayPal Account:

You don’t have to pay anything to create a PayPal account. There is no need of any type of debit or credit card to open PayPal account. You can add the debit card or credit later after opening an account if you want to buy something online. But it’s not necessary if you only want to receive money that you have earned online.

1st Step to Create Paypal Account:

First thing is to visit the PayPal India page and click on the Sign up button on the top right corner of your screen.

paypal login page_ create paypal account

2nd Step to create a PayPal Account:

On the next page, you will see two options to choose from Individual Account or Business Account. If you are a small startup you can start with the individual account. You can later change it to business account whenever you want. So choose your option and click on the “Continue button”.

3rd Step to create a Paypal Account:

Next page will be a sign up page. On this page, the first option is to enter your Country which will be India by default. The second Box is to enter your Email id, and the third and fourth box is for the password.

paypal sign up page

Your password should be between 8 to 20 characters and should include 1 number or special character(@#$!).

4th Step to create a Paypal Account:

On the next page, PayPal will ask you about your personal details like Name, date of birth, Address, and phone number. Fill all the details correctly and click on the check button if you want to receive marketing communication from the PayPal. Then Click on “Agree and Continue” Button.

Pay pal account opening

Make sure the name you enter in the name field should exactly match with your PAN card.

5th Step to Create PayPal Account:

The next step is to enter your credit card or debit card details. You can add if you have & want to add otherwise click “I’ll link my card later”.

paypal card details

If you choose to add your card details right away do not worry about the security. Your financial information is securely stored and encrypted on Paypal servers and is never shared with merchants.

Once you are done with this step. The website will redirect you to a Paypal login page. Congratulations you have successfully created your Paypal account. Enter your password again and you can log in to your PayPal account.

Once you login to the homepage of your account. The website will prompt you to complete the Paypal account set up procedure. Once you click to that you have to fill the details shown in the picture.

paypal setup


7th Step to create Paypal Account:

Next step to select the purpose code. Your Purpose Code indicates the nature of business for which you receive payments into your PayPal Account. Please make sure you select the Purpose Code that accurately describes your business transactions. This is required as per Indian regulations.

paypal purpose code

Once you choose your nature of business click on the “Submit Button”.

8th Step to Create a Paypal Account:

Next step is to Add Bank Details.By adding a bank account you can receive funds and withdraw it. Once you add a Bank account, PayPal will send two small deposits to the bank account within 3-5 business days. Please log in to your PayPal account, and enter the two amounts to lift your sending and withdrawal limit.

Add bank account and you will be taken to the next page where you need to enter just two fields such as :

  • Bank Account Number
  • IFSC code.

paypal add bank details

Once you finished entering your bank details click on submit. Paypal will send you two small amounts to your bank account. We’ll retrieve these deposits from your account later. Keep checking your bank account. Once you received the amount login to the PayPal account and confirm the 2 deposits you received.

payment confirmation Verified PayPal Account:

Once you attach your bank details in your PayPal account and confirm your account using the 8th step of how to create a PayPal account. Your PayPal account will be a verified account.  It means if you have some money in your PayPal account it will automatically transfer to your bank account.

In case you do not verify your account, your PayPal account has certain limitation. You can send and receive money up to certain limit.

Also Read——– How to create a free Blog.

PayPal In India:

Due to a ruling by RBI in 2010. In India, you can only withdraw money from your PayPal account into your bank account. Due to which you have to pay conversion fees twice while adding money and while withdrawing money from PayPal. There is no solution to this problem. Also, An Indian PayPal user can’t send or receive money from another Indian PayPal user.