The fastest way to transfer money between PayPal accounts
You can send money from one PayPal account to another in minutes using PayPal's "Send Money" feature. The person receiving the money needs a PayPal account with a confirmed email address. If you're sending to someone you know, you enter their email address or phone number, choose the amount, and PayPal moves the money to their account almost when ready — usually within seconds to a few minutes.
PayPal treats transfers between accounts differently depending on whether you're sending to a friend or family member or paying for goods and services. For personal transfers between people you know, PayPal calls this "Send Money to Friends and Family." For business payments, you use the "Pay for Goods or Services" option instead. The route you choose affects whether the sender pays a fee and how the recipient receives the money.
Key Takeaways
- Personal transfers between PayPal accounts using "Send Money to Friends and Family" are free when you send from your PayPal balance or a linked bank account.
- The recipient's PayPal account must have a confirmed email address, and the money arrives within minutes in most cases.
- If you send money using a credit or debit card, PayPal charges a fee, even for personal transfers.
- You can send money to someone's email address or phone number if they have a PayPal account linked to either one.
- The recipient can withdraw the money to their own bank account, leave it in PayPal, or use it to send money to others.
How to send money using the PayPal website
Log into your PayPal account on the website and look for the "Send Money" button, usually near the top of the page or in the main menu. Click it and you'll see a form asking for the recipient's email address or phone number. Type in the email or phone number associated with their PayPal account.
Next, enter the amount you want to send and choose whether this is a personal transfer to a friend or family member or a payment for goods or services. For personal transfers, select "Send Money to Friends and Family." Then choose which account or payment method you want to send from — your PayPal balance, a linked bank account, or a linked card. PayPal will show you whether there's a fee before you confirm. Review the details and click "Send" to complete the transfer.
How to send money using the PayPal mobile app
Open the PayPal app on your phone and tap the menu icon (usually three horizontal lines) at the bottom or top of the screen. Look for "Send Money" or a similar option and tap it. You'll see the same form as the website version: enter the recipient's email address or phone number, the amount, and choose "Friends and Family" for a personal transfer.
Select your payment method — PayPal balance or linked bank account — and review the fee information. Tap "Send" to complete the transfer. The money will appear in the recipient's PayPal account within minutes. You'll receive a confirmation on your phone, and the recipient will get a notification that money has arrived.
What payment methods you can use and what they cost
If you send money from your PayPal balance or a linked bank account to a friend or family member, there is no fee. Your PayPal balance is money already sitting in your PayPal account from previous sales, transfers, or deposits. A linked bank account is a checking or savings account you've connected to PayPal and verified.
If you send money using a credit card or debit card, PayPal charges a fee even for personal transfers. The fee varies but is typically a percentage of the amount plus a flat amount. For example, sending $100 using a credit card might cost $3.20, but the exact fee depends on the current PayPal rates and your account type. Before you confirm the transfer, PayPal shows you the exact fee, so you'll know the cost before the money leaves your account.
If you're sending money to pay for goods or services rather than as a personal gift, the rules are different. The sender pays a fee regardless of payment method, and the fee is higher than for personal transfers. This is why personal transfers are the cheapest option when you're sending to someone you know.
How long it takes for the money to arrive
When you send money between PayPal accounts using "Send Money to Friends and Family," the money usually arrives within minutes. In most cases, the recipient sees the funds in their account within seconds to a few minutes after you hit send. PayPal processes these transfers when ready on their system.
The only time a transfer might take longer is if PayPal flags the transaction for review due to security concerns — for example, if you're sending a very large amount or sending to a new recipient. In those cases, PayPal may hold the transfer for a few hours or a day while they verify the transaction. You'll receive a notification if this happens, and PayPal will tell you when the money will be released.
What happens after the money arrives
Once the money lands in the recipient's PayPal account, they can do several things with it. They can leave it sitting in their PayPal balance and use it to send money to others, pay for things online, or make purchases through PayPal's checkout. They can also withdraw it to their own bank account, which usually takes one to three business days depending on their bank.
The recipient can also use PayPal's debit card, if they have one, to spend the money directly from their PayPal balance at stores or ATMs. There's no requirement to move the money anywhere — it stays in their PayPal account until they decide what to do with it.
What to do if the transfer fails or doesn't arrive
If you sent money and it didn't arrive within a few minutes, first check that you entered the recipient's email address or phone number correctly. A common mistake is typing the wrong email or using a phone number that isn't linked to their PayPal account. You can contact the recipient and ask them to confirm their PayPal email address.
If the address was correct, log into your PayPal account and check your transaction history to see the status of the transfer. PayPal shows whether the money is pending, completed, or failed. If it failed, the money should return to your account within a few business days. If it's still pending after several hours, contact PayPal's customer service through the Resolution Center in your account or through their help pages. PayPal can tell you why the transfer didn't go through and help you resend it.
Frequently Asked Questions
Can I send money to someone who doesn't have a PayPal account yet?
No, the recipient must already have a PayPal account with a confirmed email address. If they don't have one, they'll need to create an account first. You can send them a link to PayPal's sign-up page, and once they've created their account and confirmed their email, you can send them money.
Is there a limit to how much money I can send at once?
PayPal sets limits on how much you can send, but the limits vary based on your account history, how long you've had your account, and whether you've verified your identity. New accounts typically have lower limits. You can check your sending limit by starting a transfer — PayPal will show you the maximum amount you can send. If you need to send more, you may need to wait for your limit to increase over time or verify additional information on your account.
What's the difference between "Send Money to Friends and Family" and "Pay for Goods or Services"?
Personal transfers to friends and family are free when you use your PayPal balance or bank account and are meant for gifts or money between people you know. Payments for goods or services charge a fee and are meant for business transactions. If you use the wrong category, you may pay an unnecessary fee or the recipient may not receive the money the way you intended.
Can I cancel a transfer after I've sent it?
If the transfer hasn't been claimed or received yet, you may be able to cancel it through your transaction history. Log into PayPal, find the transaction, and look for a cancel option. Once the recipient has received the money, you cannot cancel the transfer — you would need to ask them to send the money back to you instead.
Do I need to pay taxes on money I send to someone else?
Sending money to a friend or family member is generally not a taxable event for either person. However, if you're sending money as payment for work or services, that may have tax implications. For questions about your specific situation, consult a tax professional or the IRS website.