Yes, you can use PayPal to pay for your hosting. However, there are a couple of restrictions if you do not pay using a credit card.
Firstly, the 97 day money back guarantee only applies for credit card payments.
Secondly, if you specify a promo-code during sign-up, you will only be given the option to pay using a credit card.
Do you know someone that has a credit card or direct debit card? If so, perhaps they would let you make the payment to them and let you use the card.
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