Bitcoin will be Paypal's biggest speed bump.
One of Paypal's founders, Peter Thiel, is an outspoken libertarian and I have been impressed with many of his statements and commentary. Let's see how true to principle he is as Bitcoin starts competing in an open market with Paypal. When and if he makes a statement about Bitcoin, I expect it will be positive. If not, I will be seriously disappointed in him.
I think it's important to note that he sold PayPal and is no longer involved in the company's operations. If I were him, I would be kind of sad at what it has become. Someone really ought to tip him off about Bitcoin.