I want to recommend you the services of 1 and 1 if you are finding a hosting where you can pay with paypal:

1&1 Internet Inc., the world’s largest web host by known servers, launched a new facility which allows new customers to pay using PayPal when signing up and existing customers to choose PayPal as their continuous payment method.

PayPal® is an account-based system that lets individuals and businesses send and receive money online. Users can set up a PayPal® account using their credit or debit card and make secure purchases without revealing their credit card number or financial information. PayPal supports both credit cards and debit cards including VISA, MasterCard, AMEX, VISA Electron etc.

If users do not already have a PayPal® account, they can create one during the 1&1 check out process by selecting the PayPal® option in the check out process and following the step by step instructions to complete their order.