Hi. My buyer wants to use PayPal - I understand why. How does eBay pay me if he does use PayPal? Does it make any difference to me - that is does eBay still pay the net proceeds into my bank account?

They do, but you will still have a 30 day hold on your funds since eBay see you as a 'new' / infrequent seller The buyer does not pay into Managed Payments, eBay does