Many stories of accounts being frozen and the funds from suspected illegal activities being confiscated. Even so there are some that do use paypal.

I believe I have used PayPal twice for hobby-related transactions.

I used PayPal one time to transfer a deposit for an engagement.

Additionally, I used PayPal to purchase items from a provider. The PayPal transaction revealed the real name of the provider. She was not too amused with the discretionary lapse.

Although evidence (i.e., testimonials) appears to exist suggesting that PayPal will confiscate funds used for illicit purposes, a carefully constructed transaction by both parties may be successful.

Still, cash is king in the hobby.