PayPal allowing users to transact real digital tokens means their procedures on KYC/AML, accounting, regulatory are mature enough to allow them (PayPal) to deal with those topics with a relatively low risk.
This is yet another example of institutional adoption of Bitcoin.
Their business is one of a sunset industry if they can't improve their business strategy, why I say its sunset industry because there are many e-wallet or payment gateway which provide an easiness for their users. Crypto is a new invention in financial industry which give us freedom for our trancations without any country limitation or anything else, as long as user enter the market, wherever we are, wa can get the access. This is one of my view, the main reason why they have to upgrade. Even their new strategy can't give much effect for the market at least their company keep exist with any transformation.