Simple. Bitcoin sellers are the competition of PayPal in the electronic payment industry. Actually PayPal does not like the concept of the Bitcoin as it is now being uaed worldwide for electronic payment. Unlike before, PayPal dominates the whole electric payment industry in the international setting.
But in local setting, for example here in the Philippines, the competition for electronic payment is a lot bigger. There are companies like gcash, who was actually recently established and 45% owned by Jack Ma, that deals electronic payments in the goods and services purchased.
Although thses electronic payment service companies competes with Bitcoin, Bitcoin has a lot more to offer as it has it's own currency. Bitcoin is the boss of it's own.
Yeah it seems paypal had found the a good competitor, higher charges of paypal is sometimes due to monopoly or lack of competitor, even if they will ask higher service still people opted to pay because of needs, aside from that every services they offered has a corresponding taxes including value added taxes
and the bad things it will be charged to you included in the service payment.
This is the part of the truth which people do make use of it and would really be forced to pay up those fees according to their own rules and people doesn't have any choice when it comes to online payment and bitcoin would really be a strong competition but checking on its recent issues about fees I would rather stick to paypal for these times.
PayPal has controller over currency any get some money for transactions, I think in case of bitcoin it's decentralized so it's is more convenient in nature without third party so PayPal not like it.
They are really aware on what are the capabilities of bitcoin which they would really see these things for sure. They might like it or not but bitcoin would really be used as it should be.