Paypal isn't a technology, it's a website, and places like ebay make using it mandatory so the figures are highly inflated.
The clock is ticking too, when you want to buy something you need to sign up and account and then another account with paypal to be able to pay or receive payment? That's twice the hassle.
Canada has issued a better alternative, a chip implanted into traditional cards that can be plugged into any device to make a completely secure payment, including on your home computer or cell phone adapter. The chip is far more secure than traditional magnetic swipe bars. Paypal, not having any hardware or technology of their own, seems to be on a path that will take them the way of dial-up sooner rather than later.
The chip is not widespread in the US yet because of costs in upgrading store outlet checkout hardware, even in canada cards have both a magnetic swipe and a chip to make sure the card can be used anywhere...
Maybe that's why paypal is pushing a paypal credit/debit card so much right now?