If you have an email account from @live.com, @hotmail.com, @outlook.com or @msn.com, I guarantee you that you’ve been missing email. All of these email accounts belong to Microsoft who have such stringent email policies that it thinks everything is spam, or it is not delivered at all. My advise, get a Gmail account, they always work! More information about email accounts, click here.
If you insist on using your Microsoft email account with Paypal, you will not be able to receive the email that provides your login credentials. (Username and Password) So there is no sense in using PayPal if you have a Microsoft email account. Change your PayPal email address to Gmail or Yahoo or anything else but Microsoft accounts.