There are two payment options; Cash/Check & PayPal account. And there is a manual option, where you manually enter their subscription information.
If you have PayPal enabled, the user can choose to pay by:
IF THEY USE A PAYPAL ACCOUNT:
a) PayPal balance using one of their attached bank accounts or credit card accounts, or by entering their credit/debit card information.
IF THEY DO NOT WANT TO USE A PAYPAL ACCOUNT:
b) By entering their credit/debit card information. This is called "PayPal Guest Checkout."
See attached screenshots
I just confirmed that both options are available for me. I am in the USA. Maybe there is an issue in your country?
Maybe PayPal is being more strict with that particular user / IP address group / country. I don't know. But I am not having a problem with this feature at all. Either way, this a PayPal issue with your user and their choice of payment.
PAYING WITHOUT A PAYPAL ACCOUNT: