eBay require sellers to offer a 'safe' payment method, BUT, PayPal User Agreement does not give seller or buyer protections for items that are hand delivered by the seller or collected in person by a buyer.  This comes straight from the PayPal User Agreement (see cut and paste sections below and click https://www.paypal.com/webapps/mpp/ua/useragreement-full?locale.x=en-AU#Schedule_1_PayPal_Seller_and... to go straight to the PayPal user agreement page that these c&p come from):

PayPal Seller Protection Policy

     Limitations

     S4.1     The PayPal Seller Protection Policy will not apply to a transaction if:

            f.     The item is hand delivered

PayPal Buyer Protection Policy

     Eligibility

     S10.1 You may be eligible for the PayPal Buyer Protection Policy if all the following requirements are met:

              i.     Your purchase is not for:

                     vi.      Items you collect in person or arrange to be collected on your behalf

(end of cut and paste)

To make it easy for anyone who does go to the agreement, the relevant section numbers and subsections/parts/clauses are the same in this post and the PayPal User Agreement i.e:

Limtitations S4.1: (f),

and

Eligibility S10.1 - (i): (vi)

found on webpage https://www.paypal.com/webapps/mpp/ua/useragreement-full?locale.x=en-AU#Schedule_1_PayPal_Seller_and...