I’m having the same issue. The 2 phone numbers I've tried, work fine on other Ppal accounts. Tried clearing history, cookies etc. Nothing. Error continues to occur “phone number not accepted”. Using a different browser, it still rejected but the message was different, stated “we cannot accept VoiP phone numbers. Try a different number”. Really?! Isn't that basically every phone now? It’s looking like a site error issue considering the same numbers validate on paypal already. They are valid mobile phones being used in same country issued for 15+ years.
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