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How to Create a new PayPal account in Canada
With PayPal, individuals can send payments to their loved ones or make online purchases, in minutes. Businesses can also use PayPal and its supportive features for merchants to facilitate easier purchasing and returns, worldwide.
PayPal is available in 200+ countries and regions, and allows transactions in 25 currencies¹. However, there are fees and transfer costs to watch out for.
In this blog, we will discuss how you can create a new PayPal account in Canada. We will also talk about some PayPal alternatives such as Wise, that can help you save money on international transfers.
Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.
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What do you need to open a PayPal account?
To create a Personal PayPal account, you need the following information²:
- First and Last Name
- Home Address
- Email Address
- Phone Number (with country code)
To create a Business PayPal account, you need the following information³:
- First and Last Name
- Email Address
- Password (high strength)
- Tax ID/Social Security Number
- Business Description
- Business Bank Account Details
Prepaid or online-only bank accounts are not compatible and therefore, do not integrate with Paypal.
How to make a PayPal account for personal use
To make a PayPal Personal account , follow the steps outlined below:
- Go to the sign up page.
- Choose the Personal account option and press the Sign up for a Personal Account button.
- In the next screen, enter your mobile number and press Next.
- The next screen will ask you to input the code you received on your mobile number.
- Once you confirm the code, you are taken to the next interface, that has form fields for your full name, your email address and your PayPal account password.
- Click Agree to the terms and conditions, and you are done!
Congratulations, you have created your PayPal Personal account!
How to create a PayPal business account
To make a PayPal Business account, follow the steps outlined below:
- Go to the sign-up page.
- Choose the Business account option and press the Sign up for a Business Account button.
- In the next screen, enter your email address and click on Next.
- Create a password and click on Submit.
- In the next step, you need to fill out all form fields related to your personal information and business details.
- Click on Agree and Create Account and you are done!
Congratulations, you have created your PayPal Business account!
Alternatives to PayPal in Canada
PayPal is admittedly very popular with consumers and businesses across the world. However, it has its shortcomings—mainly high money transfer costs. PayPal has its own exchange rate, along with a fixed currency conversion fee. This is especially relevant for money transfers overseas.
If you would like to save more on money transfers, there are alternatives. Wise, for example, helps you make transactions safely and easily, with no additional or hidden charges. For a detailed review on some of PayPal's alternatives for business and personal transactions, click here.
Let’s take a look at Wise and Paypal’s key features side by side, for individuals as well as businesses.
For Paypal Personal account users:
| PayPal | Wise | |
|---|---|---|
| Available Currencies | 25 currencies | 40+ currencies |
| Exchange rate | Mid-market rate + 3-4% of the amount being sent⁴ | Mid-market rate |
| Monthly fees | Inactivity fee: 20 CAD⁵ | None |
| International transfer fees | - From PayPal balance/bank account: 2.99 to 4.99 CAD - From Credit or Debit card: 2.99 to 4.99 CAD + 2.90% + Fixed fees | Fixed fee depending on transaction amount + Variable fee (0.43% of transaction amount) |
For PayPal Business account users:
| PayPal | Wise | |
|---|---|---|
| Payment Gateway | Yes | No |
| Fees for incoming international transfer | Fixed fee for receiving personal transactions, depending on currency received | Free for most currencies |
| Exchange rates | 3-4% above mid-market rate⁴ | Mid-market rate |
| Accepting Mobile Payments | Yes | Yes |
Here’s how much sending 1000 CAD to the UK would result in, with Wise as well as PayPal:
Frequently Asked Questions about PayPal in Canada
-
Is PayPal free in Canada?
Consumers using Paypal can send money to their friends and family members within Canada for free⁶ PayPal accounts can also be used to make online purchases, without incurring any additional fees.
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Is it okay to have PayPal without a bank account?
You do not need a bank account to be linked to your PayPal account⁷ if you are only using PayPal to receive funds. You can create a personal account with your name, address, phone number, and email address, and use PayPal’s services.
However, if you want to send money or make a payment and your PayPal balance won’t suffice, you will need to link your card or bank account with your PayPal account.
-
Is there a monthly fee to use PayPal?
PayPal does not charge a monthly fee, or require you to maintain a minimum balance in your account, to use their services. However, there is a monthly inactivity fee to pay under certain circumstances.⁵
-
Can I create a PayPal account without a phone number?
PayPal does not allow you to set up an account, without an active phone number.
Sources:
1 - PayPal Global - All countries and markets | PayPal
2 - What information is required to open a Personal PayPal account?
3 - Open a Business Account Online | Getting Started | PayPal
4 - Fees | PayPal Consumer | PayPal CA
5 - Fees | PayPal Consumer | PayPal CA
6 - How Does PayPal Work in Canada? - NerdWallet Canada
7 - Can I Have a PayPal Account Without a Bank Account? | Canstar
Sources last checked on 26 May 2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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