Paypal will never get banned or treated like "cash like" payment. Paypal serves as a payment processor. Eventually I expect more merchants adopt Paypal as another payment method in addition to Visa, MC, AmEx and Discover. Paypal merely links merchants with customer. Payment type is not changed.

Third party bill payment processors include the type of Plastiq. With those, payment type changes. Plastiq "charges" the CC banks, convert the charges into cash. Then Plastiq pays the landlords and other merchants with cash. Clearly Plastiq converts "charges" into cash, not just "cash like".

We'll see how Plastiq is going to change. I would expect more or all Chase CCs be excluded from Plastiq.

With its charging 2.85%, Plastiq is pretty much dead anyhow.