The existing giro system is the real Paypal competitor. Most Europeans had access to Paypal-style money transfers before they had email. Merchants probably want to rely on another party to maintain their integration, but there is no real need for another centralized service similar to Paypal.
(The U.S. really is an outlier among developed nations in that its giro system is not widely used, and many residents would not even know how to access it. Hence Paypal's network effect can offer value there. Europe is very different.)
(The U.S. really is an outlier among developed nations in that its giro system is not widely used, and many residents would not even know how to access it. Hence Paypal's network effect can offer value there. Europe is very different.)