The biggest plus in linking a bank account as your funding source instead of a credit card is to avoid fees.
From their help article on fees (my notes in blue):
We charge fees for the following circumstances:
- When you receive money from a purchase. (vs. via Friends & Family)
- When you receive payments from outside your country or region.
- When you send personal payments using a credit card, the sender always pays the fee.
This is the big one for me because every 5er you buy, every donation you make, etc. YOU'RE paying a fee unless there are funds in your PP acct to cover the transaction.
Transaction fees can range from 2.2% to 2.9% + $0.30 USD, and are assessed when the payment is made. If you receive a payment from outside the U.S., the fee is 3.9% + $0.30.
There is no fee when you make a purchase, or when you use your PP balance or bank account to send a personal payment.