It would increase fraud if they paid via Paypal. By paying to a bank account or sending a cheque to a physical address they can better identify you and what country you are really in.
Already discussed so many times before They have their own payment system (Google Checkout) so once it is available worldwide, maybe they going to use that. No chance for paypal IMO. DON.
No point using Google Checkout. It just adds a redundant step. Now: Adsense > EFT > Bank Account w/Checkout: Adsense > GoogleCheckout > EFT> Bank Account
They do not pay via PayPal because Google Checkout is a pure competitor to PayPal I hope google also launches some great stuff like pp !
Plus I really don't want PayPal dipping into my revenue for their fees, its bad enough when I trade at DP
You wont be charged fees if adsense pays via Paypal because They send it as a Mass Payment (salary), and there are no fees charged in mass payment !