If you don't have a bank account and credit card - PayPal will not be of much value to you as your account will have limits on sending, receiving and withdraws.
Why do you need a bank account and credit card ??
It's the best way to confirm your identity - as everything is done online - you open a PayPal account and you say your name is John Smith - who knows who you really are - yes, you do but, no one else does. By providing ID info you have now validated your info - a bank account and credit card is the easiest method to prove you identity in the online electronic world. If you owned a bank account and card, you would have to provide ID to open a bank account and apply for a card so your identity has already been vetted. PayPal then checks the info you provided against your bank account details and card details. If everything matches, name and address, PayPal will lift the limits on your account and you can then actually use the account as intended.
