Actually, there is a lot of talk of the problems, and little talk about solutions. I have a potential solution: Local whitelisting companies. Paypal and all ot

Actually, there is a lot of talk of the problems, and little talk about solutions. I have a potential solution: Local whitelisting companies. Paypal and all other payment providers partner with local companies who claim that will pre-screen people who want to use paypal. These companies then use whatever methods they want (visiting the homes, checking bank accounts, escrow) to verify that the people will be valid paypal customers. Paypal then does not need to verify thousands of people, it just needs to trust this company, and if the company fails a few times, it's replaced and pays some kind of penalty. Also, amounts can be limited to some value that the verification company holds in escrow for paypal. Something that moves the burden of verification to people who are aware of how things work locally.