It works through paypal credit card. Just get a verified account and apply for the credit card. You don't need good credit for this as it is actually not a credit card in the sense that it gives you credit. It is more like a bank card that you can use when you have funds in your account.
I do not think Google allows Paypal. It does not even allow Adsense earning directly to adwords. But may be in future they can. Nuttymarketer
Yes but AFAIK verified is just a certification for your paypal account the your name is a true name. If someone will do business (buy things/service from you) with you using paypal he will know that you're verified or not. As I know is possible to pay and receive money in paypal on an unverified account. If adwords decide to introduce paypal will not make sense to require to be a verified user.