Can you set up a US PayPal account in Canada?

PayPal accounts are available in countries across the world, including the US and Canada. It’s possible to apply for a PayPal US account from Canada - but you need to have a proof of legal residence in the US to qualify.

Wise is an easy alternative, helping you send, spend, and receive your money across the world with a simple multi-currency account. You can apply for an account in minutes to hold USD in Canada.

This article tells you need to know about applying for a US PayPal account from Canada - and about Wise as an alternative.

Table of Contents
Advantages of a US PayPal account in Canada? Send, receive, and hold USD with Wise How to set up a US PayPal account in Canada Bottom Line Frequently Asked Questions

What are the advantages of a US PayPal account in Canada?

There are a few advantages to using a PayPal US account from Canada. You can send and request money worldwide using your PayPal account - and the platform prides itself on providing flexible payment solutions for individuals and businesses.

Many Canadian debit cards use the Interac e-transfer, which isn’t compatible with PayPal. This means you may not be able to add your card to your Canadian PayPal wallet unless it’s a branded debit card, such as Visa or Mastercard.¹ A PayPal US account could solve this problem.

PayPal will also automatically convert to local currency when you withdraw your money. Even if you hold USD in your Canadian PayPal account, the currency will convert to CAD when you want to send it to your bank account. This can mean you’re subject to fees, compared to a US PayPal account, which lets you send money in USD - and withdraw it in USD, too.¹

Meet Wise - send, receive, and hold USD in just a few clicks

While opening a PayPal US account might seem like a hassle, you can easily open a Wise account for personal as well as business transactions. You can use your Wise Account to:

• Send, spend, and convert your money in multiple currencies at once
• Hold USD in Canada
• Use local account details in 8+ currencies
• Make payments in 150+ countries with your Wise card
• Avoid hidden transfer fees

All global transfers and payments are exchanged at the mid-market rate. This is the same rate you would see on Google, with low and transparent fees for every single transaction.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Whether you’re a freelance artist or you want to make flexible payments across the world - Wise can help!

Spend, send, hold, and receive your money across the globe with Wise. Here’s how much 1000 CAD would get you in USD, with Wise and with PayPal:

How can I set up a US PayPal account in Canada?

You can get a US PayPal account in Canada, but you or your business needs to be registered in the US to qualify.

We’ve put together information about how to set up a US PayPal account for yourself or your business, including the documents you need to apply.

What documents do I need to open a US PayPal account?

You need a few key pieces of documentation to open a US PayPal account in Canada for yourself or your business.

To open a personal US PayPal account, the following information is needed:

• a US SSN
• proof of US address
• proof of US phone number

Setting up a US PayPal account for personal use

It’s easy to set up a personal US PayPal account in Canada if you’re a US resident.

Step 1. First, you need to open a US bank account

Step 2. Next, head to the PayPal website to create your account

Step 3. Choose to create a “personal” account. You’ll need to provide your details, including your full name, address, phone number, and email address

Step 4. At this point, you can start receiving payments from other accounts. You’ll need to add your credit or debit card to send your money or make payments

Step 5. Follow any further instructions to complete your account set-up. This may involve email verification, and you may also need to provide a few supporting documents for your account, such as your US Social Security Number (SSN)

It’s worth noting that you can’t use a P.O. Box address to open a US PayPal account in Canada. PayPal can detect your IP address - meaning it’s not possible to “cheat the system” if you don’t have US residency.

If PayPal notices a discrepancy in information, they can close your account and ban you from the platform.

To open a business US PayPal account, the following information is needed:

• proof of business operations
• EIN number for the company
• your SSN or ITIN
• proof of US company address
• proof of US company phone number
• your company certificate, including LLC or corporation papers

Setting up a US PayPal account for business transactions

It’s also possible to set up a US PayPal account for your business.

Step 1. Apply for an Individual Taxpayer Identification Number (ITIN) through the Internal Revenue Service (IRS), if you don’t already have one

Step 2. Head to PayPal to set up your account, and choose a “business” account when prompted

Step 3. You’ll need to provide all your details, such as your full name, business address, and business phone number. You’ll also need to provide some additional information about your business, including your EIN number or SSN

Step 4. Follow any further instructions prompted from PayPal. This includes providing certain pieces of documentation, including your US business address and proof of business operations

Remember, if you open an account without passing PayPal’s verification, the platform could limit some features of your account until they can confirm your details.²

If you’re looking to reduce costs associated with money transfers and monthly fees, you might want to take a look at Wise Business.

Bottom Line

PayPal US is a simple way for Canadian individuals and business owners to send, spend, and receive payments across the world.

However, you need to be a US resident to apply for an account - and you’ll need to provide a few key documents as proof.

Wise is an easy alternative! You can open an account from anywhere in minutes - and you can have account details for 8+ different currencies. Check it out to start managing your money in multiple currencies today.

Frequently Asked Questions

If you want to apply for a US PayPal account from Canada, you may have a few additional questions about the platform and its application process.

We’ve put together some frequently asked questions.

Is PayPal safe?

PayPal is a safe and secure platform to send and receive your money. The platform encrypts your details, meaning you’re protected from fraud with every transaction.

In how many countries can I use PayPal?

PayPal is available in more than 200 countries and regions, and it supports 25 currencies.

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Sources

1. PayPal
2. How to create a PayPal US business account
   Sources last checked on: 1 June 2023