yes any money sent to you through paypal, whether you sell something or it's just a friend sending you money gets put into your paypal account. just like if you made a deposit into your checking account. you can then use that money to buy anything offline that accepts paypal, like something on ebay for instance.
you can also get a paypal debit card which is free and you can withdrawl your paypal account money from an ATM or use it as a mastercard at a store. not the paypal credit card, the DEBIT CARD.
or you can attach it to a bank account and transfer the money from your paypal account to bank account (or bank account to paypal account) but there like up to a 5 business day transfer wait for that so most people try to bypass that if possible.
