I disagree with your observation about confidentiality. There are a lot of reasons to use PayPal, just as there are reasons to use cc or bank accounts. If buyers have to pay a premium to use PP, or there are discounts for paying with other methods, lots will take advantage of lower prices. I think the direction sellers will go is to offer incentives for more reasonable forms of payment. There are lots of creative ways to do that. Until now, PP was the most convenient way for me to take payments, especially for international and/or big ticket items. Now they are giving me incentives to go somewhere else. That's just business.
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