I agree for EBay transaction between 2 private individuals. However, from a consumer / vendor perspective, paypal acts more as a regular payment processing. In

I agree for EBay transaction between 2 private individuals. However, from a consumer / vendor perspective, paypal acts more as a regular payment processing. In that market, the vendor is the client, most of the features you enjoy as a user of services like Paypal or VISA (protection, credit, free transaction, ...) is paid for by the vendor. So their point of view is what matters and right now, they are not happy. Of course as you noted, Bitcoin on its own is not a competitor to anything except "mailing a check" type transaction. But it can enable creating competing services much more easily than before.