How to use PayPal to send money securely, with no fees or minimums


  • PayPal is a secure, free way to send or receive money quickly.
  • To send money on PayPal, both people need (free) PayPal accounts.
  • Once you have an account, it’s just a matter of using the “Send & Request” feature on the site or app.
  • Visit Business Insider’s homepage for more stories.

You might know PayPal as a secure way to pay for purchases online, but it’s also a secure way to exchange money.

“Exchanging money” sounds very serious, but it’s a useful service for day-to-day transactions like paying your part of a group dinner at a restaurant, giving your teenager some cash to see a movie, or even paying the babysitter (provided they agree!). PayPal is encrypted for security, and provides constant transaction monitoring to watch out for fraud.

To send money through PayPal, both parties — that is, you and the person you’re sending money to, or requesting money from — will need to have PayPal accounts, which are free and easy to set up through the PayPal website.

In order to send or receive money through the PayPal system, you’ll need to follow a few simple steps.

How to send money on PayPal

1. Visit to set up an account.

2. Click ‘Sign Up’ in the upper-right-hand corner to be directed to the account creation page. From there, you’ll need to pick from a personal or business account.

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3. Create your account, including picking out a password and linking your PayPal account to your checking account or credit cards. Once you create your account, you’ll be sent to the homepage.


4. Click “Send & Request” from the top menu bar to send money to someone (or request it).

5. Type in the name, email address or phone number of the person you wish to send money to. Keep in mind that in order for a PayPal transaction to occur, the person you want to send cash to needs to have a PayPal account, as well.

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6. Type the amount you wish to send in the first box, and pick from sending to a friend (which is free to use your bank or current PayPal balance to send to family or friends in the U.S.) or click “Change” to pay for an item or service (in which case the seller would pay a fee).

You can also add a note in the “add note” section, if you’d like. Click continue after filling in all of your information. 


7. Your next step will be the “How do you want to pay?” screen. You can pick from a linked checking account (which is free), or a credit card, which will come with a fee. You can also add new accounts on this page as needed. When you’ve picked your payment method, click next. 

8. A confirmation page will appear with your fee, who you’re sending payment to and how you’re sending it. Click “send payment now” to have PayPal send the money to your contact’s PayPal account.

9. You will receive an email from the account with the information regarding your transaction. Keep this email in case you need it for any future reference.

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