I'm not from the US and to me PayPal was always only a way to avoid filling in credit cards details on (random) websites.
it always feels a bit weird to see people elsewhere rely on it for much more.
it always feels a bit weird to see people elsewhere rely on it for much more.
And this is the answer.
Paypal's existence comes down to the fact that they are the sole "legitimate" vector into the US financial system for a vast majority of the rest of the world. Because that's such a massive financial incentive, they can basically treat users however they wish and get away with it.