From what I heard, it is pay to win.
It's more like pay-to-play. There's nothing but cosmetics and small perks like +10% xp gain in the cash shop, and of course patron status, which is like subscription plan.
You can do all of the combat stuff for free, but all tradeskills cost labor points, which are extremely limited unless you buy patron status. You can get decent starter weapons and armor from quests and dungeons, but all of the progression stuff comes from tradeskills, and so does money, so you have to buy patron to progress.
A bit more info about the game...most of the fun comes from interacting with other people and doing tradeskills. Skills include stuff like farming, mining, logging, husbandry, fishing, stoneworking, and so forth. Combining components from several of these skills, you can make trade-packs, which can be sold for large amounts of money. However, trade-packs are worth significantly more the farther you travel to sell them. But, there's open-world PvE, and you can be certain that players from other factions will be trying to kill traveling merchants and steal their packs for profit! For this reason, you really want to team up with a guild, combine your resources, then travel together for protection. As you earn gold you can buy bigger farms and better workstations so that you can produce more trade packs, and create carts and boats allowing you to travel further and faster while carrying more packs, thus earning more profit and allowing you to progress onto bigger and better things. As you move up, you're also learning to craft better weapons and armor so you and your guild can more effectively fend off pirates, or so you can go out and steal from enemy factions if you wish!
In addition to all that, there's hang-gliding, deep-sea diving, pet-raising, music-composition, and of course hanging out with bikini catgirls in hotsprings. 'dat wet fur smell...