The main difference is that unlike many other payment methods you do not have to register or set up a virtual account to use Pay now with direct banking. You just use your usual online banking details and your selected authentication procedure. The purchase amount is directly transferred from your online banking account to the merchant’s account.
PayPal, however, is an e-wallet. This means that you receive a virtual account you have to maintain and load with a credit in order to be able to make a purchase. You may either credit your PayPal account in advance by wire transfer or by direct debit from your current account or your credit card (Visa, Mastercard,…).