PayPal is collapsing, worst day of trading in their stock's history.
(finance.yahoo.com)
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I have sometimes entertained the pie-in-the-sky thought of Twitter or Google shutting down overnight and what would happen, but from what you are saying it doesn't sound like the death of Paypal would do anything. I might disagree as there are a few tiny storefronts I know who only accept Paypal.
if paypal disappeared today, the storefronts would be switched over to stripe or square or one of the million other storefront processors.