As already said, yes you can use your paypal for your webhosting, you might also look into credit payments directly, since some of your hosting customers will ask for this possibility too.
I used PayPal pay for hosting services so yes, it's very possible. You can offer PayPal as payment option along with other online payment facilities - credit cards, Moneybookers, AlertPay, etc.
If you have a Paypal then all you have to do to accept some payment from those people who use credit card is to urge them to use Paypal too, as simple as that.
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