When you do a balance transfer you will initiate it from the side of the bank that you're transfering the balance to (and not the recepient) and what will happen is that the bank issuing your credit card will cut a payment to your other creditor either by sending them a check or ACH (bank) transfer so yes PayPal will take their money.

Paypal Home. Shopping online shouldn't cost you peace of mind. Buy from millions of online stores without sharing your financial information. PayPal Prepaid Mastercard | PayPal Prepaid If you do not already have a PayPal Cash or PayPal Cash Plus account you will link to this Card, visit www.paypal.com to get one, or you may get one when you activate this card online. A PayPal Cash or PayPal Cash Plus account is required for certain features, but not to have the PayPal Prepaid Card. Transfers may not exceed $300 per day/$2,000 Solved: Can't pay with PayPal balance - PayPal Community Jul 27, 2018

If you're hesitant to keep any card or bank information online, but have a PayPal balance you want to spend somewhere other than the platform, you can have the balance mailed to you as a check

I have never used a paypal prepaid card before. I followed all the directions and activated it, linked it with my paypal account. I can not figure out how to see the balance, it is not on my paypal balance … Cards

PayPal Extras Mastercard®

PayPal Credit Card Review - All About the PayPal Cashback PayPal’s new PayPal Cashback Mastercard ®, launched Aug. 30, is packed with features that pin it head to head with the current highest no-fee flat-rate cash back credit card on the market.. The PayPal Cashback Mastercard ® is a no-fee rewards card that offers users a flat 2 percent cash back upfront on all eligible purchases made using the credit card.