There are numerous ways to achieve the effect of text curving. Here are two of the most commonly used!
METHOD 1: WARPED TEXT
From the Tool Panel, select the Text Tool and type your text. This will draw your text in a straight line in the normal way. Next though, you need to make sure you have the new text layer selected (it should be by default); and reselect the Text Tool so that the Options Bar is shown (illustrated below). Near the far-right-hand side of the Options Bar is an option called Create Warped Text; click it, and you are presented with a pop-up window.
From here, select the Arc option from the Style: pull-down menu. You get options in the panel to change the Bend angle as well as adding text distortion.
METHOD 2: ELLIPSE TOOL
From the Tool Panel, select the Ellipse Tool and draw an ellipse in the shape that you want your text to follow. Don’t worry about the edge or fill colors of the ellipse, you hide this at the end of this method.
Select the Text Tool from the Tool Panel. With the Text Tool enabled, when you hover over the edge of the ellipse, you will notice that the text cursor icon changes into an icon that looks like this (illustrated below). This indicates that Photoshop has identified a path that the Text Tool can follow. Left-click, and you can then type away around the ellipse.
When you have finished typing, head over to the Layer with the Ellipse shape, and set the visibility of the layer to off by deselecting the eye icon to the left of the layer; as illustrated below.
NOTE: This technique for having text follow a path works with any vector shape; such as rectangles, stars, etc. Meaning you are not just limited to having text on curves.
