Why do I need a bank account for PayPal/Do you have to link a bank account to PayPal?

02 Jan 2023

To receive funds in your PayPal account, you do not need a bank account or a credit card. However, in order to send money to family and friends or withdraw money, PayPal will require you to link a bank account.

When you link your bank account or card to your PayPal account, you will never have to pull out your wallet and enter card numbers or personal information when making an online payment with PayPal. You can check out quickly and securely with just your email address and password. If you try to make a payment but don't have enough funds in your PayPal balance, the transaction can be quickly and easily covered by your chosen primary funding source (bank account or card). 

Paypal is a secure and convenient way to pay online without disclosing your financial information. As a seller, you can use Paypal to send and receive money as well as accept credit and debit cards. It's simple to connect your bank account to your Paypal account and begin making transactions in minutes.

To begin, you'll need a Paypal account (which is free to open). When you create a Paypal account, you will be asked to link a credit card or bank account (or both if you wish).

PayPal does not require a balance; you can use it to shop or send money even if your balance is zero.

When your Paypal balance is zero, Paypal will prompt you to select your preferred payment method during the checkout process.

This could be a linked bank account or a credit card. If you change banks or credit cards, you can update your banking information.