The following text has been copied from the official PayPal website:

"Yes, we keep all your information safe. When you send a payment using PayPal, the recipient won't receive sensitive financial information like your credit card or bank account number. This way, you don't have to worry about paying people you don't know.

Additionally, when you pay with PayPal on any website PayPal Purchase Protection covers you if you have a problem. If an item doesn’t arrive or is significantly not as described we will help you to get a full refund. We also offer protection for sellers to help protect your online sales and business."