PayPal Account Guide for First-Time Users in the Philippines

Venus Zoleta

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PayPal Account Guide for Users in the Philippines | Moneymax

In this technologically advanced era, it’s hard to imagine life without a PayPal account. Signing up on PayPal is your rite of passage to adulthood—it allows you to perform financial transactions over the internet, like shopping online, sending money, and receiving payments.

While PayPal helps make online transactions a lot easier, faster, and safer, it can seem complicated and overwhelming for first-time users. This is why we’ve come up with this comprehensive guide to creating and using a PayPal account in the Philippines.

How to Create a PayPal Account

PayPal Account Guide - How to Create PayPal Account

It’s free to sign up on PayPal. No registration fee is involved. All you need to set up an account with PayPal are your computer or smartphone and an internet connection. Below are the steps to help you begin.

Choose Your PayPal Account Type

PayPal offers two types of account with features catering to different needs: personal and business. Before you register with PayPal, it’s important to decide on the type of account to set up.

PayPal Account for Personal Use

A personal account on PayPal is suitable for the following users:

  • Individuals who shop and pay online
  • People who send and/or receive money from family and friends
  • Casual sellers or non-businesses that buy and sell online

PayPal Account for Business Use

You need a business account on PayPal if you’re running an online business registered under a company name. A business account allows your business to accept PayPal as a payment method, helping you attract more customers who prefer to pay for their purchases via PayPal.

Freelancers receiving payments from their clients can also benefit from having a business account with PayPal.

A PayPal business account allows you to do the following:

  • Accept payments via debit card, credit card, and bank account from buyers
  • Assign and manage access rights to the business account for up to 200 employees
  • Use a customer service email alias for faster resolution of customer issues

How to Sign Up for a Personal PayPal Account

  1. Go to the Sign Up page[1] on the PayPal app or website.
  2. Select the “Buy with PayPal” option. Click the Next button.
  3. Provide your full name, email address, and password for your login details. Make sure to choose “Philippines” as your country/region. Click the Next button.
  4. Fill out the online form with your personal information, making sure that every detail matches that in your valid ID.
  5. Accept PayPal’s terms and conditions by ticking the small box at the bottom of the form.
  6. Click the Agree and Create Account button.
  7. Check your email address for a message from PayPal. Click on “Confirm Email Address” for your email address verification. To start sending and receiving money via the PayPal app on your smartphone, verify your mobile number by clicking on Get Code in the email message.

How to Sign Up for a Business PayPal Account

  1. Go to the Sign Up page on the PayPal app or website.
  2. Select the “Receive Payments with PayPal” option. Click the Next button.
  3. Enter your email address and click the Continue button.
  4. Fill out the online form with basic information about your business. Click the Continue button.
  5. Enter your personal information. Click the Continue button.
  6. Check your email address for a message from PayPal. Follow the instructions on confirming your email address.

PayPal Requirements for Sending and Receiving Money

PayPal is so easy to use that you don’t need to submit any forms or documents (unless you’ll be making high volumes of transactions) to start sending or receiving money.

To accept payment via PayPal, all you need to do is to provide the person who’ll send you money with the email address you’re using to log in to your PayPal account. Make sure you’ve confirmed your email address after signing up for an account.

To send money through Paypal, you need to have a confirmed email address on your PayPal account. You should also link a credit or debit card to your account, so you can start making a PayPal money transfer.

How to Link a Debit/Credit Card or Bank Account to PayPal

Linking your credit and/or debit cards to your PayPal account is a crucial step you shouldn’t skip. Once you’ve added your cards to your account, you can start using PayPal conveniently and safely for making online payments and money transfers.

How to Link a Credit Card to PayPal

PayPal Account Guide - How to Link Credit Card to Paypal
  1. Log in to your PayPal account.
  2. Look for the Link a Card or Bank button and click on it.
  3. Select “Link a credit card.”
  4. Enter your credit card details.
  5. Click the Link Card button.
  6. The system will redirect you to your bank’s website. Enter the one-time passcode sent to your mobile number for confirming your credit card information.

How to Link a Debit Card to PayPal

PayPal Account Guide - How to Link Debit Card to Paypal
  1. Log in to your PayPal account.
  2. Look for the Link a Card or Bank button and click on it.
  3. Select “Link a bank account.”
  4. Enter your bank name, nine-digit bank code, and savings/checking account number.
  5. Click the Link Your Bank button.

How to Send Money to PayPal

PayPal Account Guide - How to Send Money Via PayPal

How to Pay Someone with PayPal

PayPal makes it quick and easy to send money to another PayPal account holder with an email address or mobile number. Here’s how:

  1. Log in to your PayPal account.
  2. On the top menu, click “Send & Request.”
  3. Enter the recipient’s email address. Click the Next button.
  4. Type the amount you’ll send and select the currency. Optional: You can add a note to the recipient.
  5. Click the Continue button.
  6. Select “Sending to a friend.”
  7. Select your preferred funding source for the PayPal money transfer (either from your PayPal Balance or any of your linked credit or debit cards). Click the Next button.
  8. Review the details and click the Send Payments Now button.

Your recipient will then receive an email notification from PayPal that they’ve received money on their PayPal account. If the recipient doesn’t have an account yet, they’ll be instructed on how to create one.

How to Pay via PayPal for Your Online Purchase

Making payments for goods or services purchased online is also possible on PayPal. The process is quite similar to sending money to family and friends. Here’s how:

  1. Log in to your PayPal account.
  2. On the top menu, click “Send & Request.”
  3. Enter the recipient’s email address. Click the Next button.
  4. Type the amount you’ll send and select the currency. Optional: You can add a note to the recipient.
  5. Click the Continue button.
  6. Select “Paying for an item or service.”
  7. Select your preferred funding source for the PayPal money transfer (either from your PayPal Balance or any of your linked credit or debit cards). Click the Next button.
  8. Review the details and click the Send Payments Now button.

The seller who’ll receive your payment will be the one shouldering the PayPal fee.

How to Send Money Through PayPal

How to Transfer Money from PayPal to BPI or Any Bank Account

PayPal Account Guide - How to Send Money Via PayPal

The traditional way to cash out PayPal balance is to transfer it to a savings or checking account. It’s the slowest and most expensive PayPal money transfer method, but it’s your only choice if you have no digital wallet like GCash and Coins.ph.

Here’s how to send money from PayPal to BPI or any bank account in the Philippines:

  1. Log in to your PayPal account.
  2. Below your PayPal balance, click the Transfer Funds button.
  3. Choose the bank account where you’ll transfer your PayPal balance. Click the Next button.
  4. Enter the amount to transfer. Click the Next button.
  5. Review your withdrawal details. Click on “Transfer.”

How to Transfer Money from PayPal to GCash

Transferring your PayPal balance to your GCash account is a money-saving option because no withdrawal fee is charged. This makes withdrawing with GCash a great idea for freelancers, small business owners, and anyone who regularly receives money on their PayPal account.

How to Link a PayPal Account to GCash

But first, you need to link your PayPal account to your GCash account. Here’s how:

  1. Log in to your GCash account.
  2. Tap “Link PayPal Account” on the side menu.
  3. Enter your confirmed email address with PayPal.
  4. You’ll be taken to the PayPal login page. Log in to your PayPal account.
  5. Tap “Authorize.”

How to Withdraw Your PayPal Balance via GCash

  1. Go to your GCash app dashboard and tap “Cash-In.”
  2. Tap “PayPal to GCash.”
  3. Enter the amount you wish to transfer and choose the currency. Tap “Next.”
  4. Review the amount and tap “Confirm.”
  5. Wait for a text message from GCash confirming your successful transaction.

Related: GCash 101: A Handy Guide for New GCash App Users

How to Transfer Money from PayPal to Coins.ph

PayPal Account Guide - How to Transfer Money PayPal to Coins.ph

Unlike with GCash, there’s no way to directly transfer PayPal balance to a Coins.ph account. However, you can still make a PayPal money transfer to Coins.ph through GCash. Here’s how:

  1. Log in to your GCash account.
  2. Transfer your PayPal balance to the GCash account (See the step-by-step guide in the previous section).
  3. Log in to your Coins.ph account.
  4. Select GCash as your cash-in method.
  5. Enter the amount to transfer.
  6. Tap “Done.”

Note that GCash charges a PHP 10 transaction fee for funds transfer to Coins.ph. Then Coins.ph will also charge you a PHP 10 fee for cashing in from GCash.

Related: Coins.ph App: A Quick Guide to Using the Mobile Payment Platform

How to Transfer Money from PayPal to PayMaya

PayPal Account Guide - How to Transfer Money PayPal to PayMaya

PayMaya is another cheap and quick option for withdrawing your PayPal balance. You can transfer a minimum of PHP 500.

To do so, you should have at least PHP 100 in your PayMaya wallet and link your PayMaya and PayPal accounts (Refer to “How to Link a Credit Card to PayPal” in the previous section).

After linking your PayMaya and PayPal accounts, you can start transferring your PayPal balance to your PayMaya account.

  1. Log in to your PayPal account.
  2. Click on “Transfer Funds.”
  3. Choose your PayMaya account. Click the Next button.
  4. Enter the amount to transfer. Click the Next button.
  5. Confirm your transaction.

Related:

How Long Does It Take to Receive PayPal Money?

How soon you’ll receive your PayPal funds depends on where you transferred your money. Typically, money transfers get completed faster using a mobile wallet than a bank account.

For first-time PayPal to bank transfers, PayPal may temporarily hold the funds received in the bank account for several reasons[2].

At a glance, here’s a table showing how long you can expect to receive money using different PayPal fund transfer methods.

Recipient Account Processing Time
Bank Account
  • Instant – Within minutes
  • Standard – 1 to 4 business days
GCash Within 24 hours
Coins.ph (via GCash) Within 24 hours
PayMaya 2 to 4 business days

 

What are the PayPal Fees?

Certain PayPal transactions come with a fee, which is deducted from the transferred amount.

Here are the PayPal fees in the Philippines you must know:

PayPal Transaction PayPal Fee
Sending payment None
Receiving payment for goods and services (international) 4.4% of the paid amount + PHP 15
Receiving payment for goods and services (domestic) 3.9% of the paid amount + PHP 15
Withdrawal via bank account Withdrawing PHP 7,000 and above – None
Withdrawing less than PHP 7,000 – PHP 50
Standard withdrawal via Visa debit card PHP 50 regardless of the withdrawn amount
Instant withdrawal via Visa debit card  1% of the withdrawn amount
Returning of funds to PayPal account due to incomplete or incorrect information in the withdrawal request PHP 250

 

Final Thoughts

Using your PayPal account may be confusing and frustrating at first, but it will get smoother as you get the hang of it. Just remember to double-check your transaction details every time, so you won’t encounter issues in your PayPal money transfer or payment.

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