It's more a service, but whatever it is, they do have an "actual" one.
PayPal has been a cornerstone of my income since around 2001. Nowadays, there are several other services I could (and might) practically switch to, but for a good 8 years or so, it was them or nothing in the sort of business I ran. I consider that an "actual" product or service since without it, I wouldn't be where I am now.
I am far from a PayPal evangelist and find a lot of the stories about their practices saddening, but the facts are clear to me, they've offered me one heck of a useful service over the years that no-one else was able to.
It's just another one of those companies that think profit is made with margins, and not with an actual product.