Think of it as an escrow service. Do most escrows work for free? Whilst Paypal fees can be a lot, I'm sure bitcoin escrow fees are pretty similar, but there's always going to be a price to pay for the security they offer. I'd much rather have the security of PayPal with using a new website as I know if there's any issues I'll be able to get my money back. Of course it's that's same loophole that allows fraudsters to flourish but at least I'm not doing anything wrong and I know my money is protected in case of issues.
Even using old services such as bitpay or btcpay do you prefer PayPal?
Bitpay is now demanding kyc, but PayPal requires even more invasive verification. And PayPal is certainly more expensive.
I think it is much better to use cryptocurrencies, because this "custodial service" has many drawbacks (you just don't own your own money and pay very high fees for not owing it, and the risk of being frozen)
Edit: for a customer perspective it may be useful, because PayPal offer more security because you can't be scammed (as Lucius said). If it were may website I would charge 2-5% more on every PayPal payment.
I prefer using PayPal when necessary. It's great for ebay and other such online services. One or two clicks and you don't have to give the site your bank details and you're also protected if anything goes wrong. It's obviously not perfect and every business has to make money but we need payment processors regardless of whether you're using fiat or crypto. Which ones you use is entirely up to you and if there's cheaper/better ones people should vote with action. I haven't sold anything on ebay in years mostly due to their fees, but I still buy lots from there and it's the sellers who have to pay the price of fees not the buyers luckily.
why PP is allow 6 months to buyer to make chargeback? From sellers point of view this is very bad business practice, and one I would never use to sell something.
Well it's the same with Credit Cards. In fact, I think they offer even longer, maybe up to a year or something. I've never had a chargeback happen to me that long after. They're normally within a week or two when the person had claimed an item didn't arrive, but I'm sure PP would require some good reasoning as to why you've only just decided to try the charge-back 6 months later.
