If I read the article correctly it said that Paypal would take payement in cryptocurrencies and then pay the merchants with fiat. That means they will need to

If I read the article correctly it said that Paypal would take payement in cryptocurrencies and then pay the merchants with fiat. That means they will need to hedge the risk of a change in exchange rate between buying and settlement (for example paypal offers to settle payment 14 days after payment as a service). Now they can do that, but it'll take some effort. On KYC I'd agree they're in a better position, but it seems like they'll still need to beef up their processes, as regulators are quite interested in proving where cryptocurrencies came from. They'll not want to be caught with a load of coins that came from the latest ransomware incident.