It always pays to err on the safe side.
I chased up the parallel communication from Paypal which I received twenty months ago, and to which I referred above. That email offered the same information to me, and action required updating the details on the Paypal site which I duly did - as you have.
Credit card debits have been widely accepted here in Australia. Our monthly mobile phone accounts are debited automatically by the company - if I recall correctly, they also required an update of details similar to that requested by Paypal at the time the old card expired.
Almost all other our other accounts are paid by credit card and come to me for authorization before that can happen. The system has worked well. I only write out one cheque a month these days - that's for our daily paper and its delivery.