paypal is owned by ebay.
ebay got many loophole, as a seller in ebay , basically no security and all policies to seller is unfair. e.g. buyer can leave negative feedback to seller, but seller cannot leave  for unpaid case;

ebay created the lengthy procedure for sellers to claim their right but will not be strict and harshed to buyers!

ebay tried to monoploised paypal payment in australia ebay but got sued by users and govt back to few years ago.

Paypal
basically, they function like a financial institutes but bypass monetary authorities policies, that created some loopholes for a fair trade. if you are a user of her, you will receive "quite often" term and condition "update" to your email! read the subscripts they wrote there, you will be "shocked". suggest those law students to take it to FYP or use it a case study in your MBA course will definitely enrich your life loophole experience.

paypal exchange rate is quite unfavourite to both payer or recipient, especially those cross currency transaction.

to sell in ebay with paypal, your cost mark up is almost 8% for a transaction via them if you sell from malaysia to ebay US or other countries.

the transaction cost plus the exchange rate margin they earn leave them sit there to "tailor" more unfair policies to the platform.

our friends left ebay few years already. paying them the listing fee, final value fees, you still have to bear with their unfair policies to sellers, is enough for seller to build up a simple website to sell and pay adsense keyword to draw traffic.
plenty of online payment choices and sale platform like lowyat forum!!!