Why not just join a credit union/bank? Paypal is not a bank, and considering their history, using it as one is risking your money.
PayPal is a bank. The company is Bancorp Bank. It has all the same laws as any bank. That is to say, it's a for profit organization. They make their money, first. The only difference between them and, say Ally Bank, are the features they offer. I actually get better overdraft protection/features, and my transactions are faster with my prepaid cards. The only thing you lose is interest. If you don't keep much money in the bank and aren't collecting interest anyway, then there's no difference.