Paypal provides an effective dispute resolution process and enables customers to pay for stuff by explicitly authorizing a payment and without giving away their payment info to unknown third-parties.
> I once saw a pdf which listed all the third parties that PayPal shares its information with. It was more than 30 pages.
What kind of info do they share with those third parties?
I think the GP's point stands, since the "unknown third-part[y]" that customers are usually most concerned about is the merchant, which Paypal definitely doesn't share payment info with (like CC numbers).
It's immatetial how much data paypal shares around. What's important is that I can share my CC with paypal and use paypal to buy stuff from any store that accepts it, and the risk of my CC data ending up in the private stash of any random CC fraudster is so low that such a thing is practically unthinkable.