Paypal is not a bank. They do not provide loans, interest on money held in your account. They are a transaction based service - charging for using their payment service.
Banks are far too concerned with security and are risk averse - they would be taken to the Banking Ombudsman if they were inept enough to demand a drivers license or passport to be uploaded online. There is a simple reason (security) why you have to present these documents in person at a branch.
FYI - I am not applying to open an account with Paypal, I have used their services for years, over hundreds of purchases and never a claim against me.
