PayPal works well on GrapheneOS. PayPal shipped incorrect anti-tampering code wrongly detecting our secure spawning feature as tampering. It works fine when the per-app toggle for secure spawning is disabled. These incompatibilities with hardening features are relatively common in banking apps. We provide an overall exploit protection compatibility mode toggle for ease of use rather than people needing to figure out which feature is incompatible.
GrapheneOS has never received or applied for any government grants. It doesn't have any involvement with any governments. GrapheneOS is banned by the Play Integrity API device and strong integrity levels. In practice, the only app compatibility issues which can't be worked around with our compatibility issues are apps adopting the Play Integrity API to enforce those.
PayPal works fine on GrapheneOS too. They recently shipped an update with incorrect anti-tampering code incompatible with our secure spawning feature. It can be worked around by toggling off secure spawning as the creator of this thread figured out on their own. For ease of use, we have a simple per-app exploit protection compatibility mode setting all these features to a compatibility mode instead of people needing to figure it out.