In retrospect, the global P2P marketplace that we've launched in 2010 on top of PayPal's API may have been 5 years too soon. Requiring all our buyers and sellers to have a PayPal account was detrimental to our brand. But, we concluded that we "didn't want to be in the nasty business of dealing with fraud, ID verification and international payments" so it made sense back then to leave that up to PayPal. But I would have given anything for a white label solution such as Stripe Connect. Also makes me wonder why PayPal wasn't able to come up with this in 5 freaking years. The technology, the platform and ecosystem was clearly there, just not the insight.
It's likely this was a conscious business decision; PayPal derives value through its brand, which is lost to consumers (buyers) using the platform if the platform becomes a white label solution.
PayPal wants customers to know they can pay with PayPal at business/merchant X, not just their credit card.
Indeed, Paypal doesn't want you to pay with your credit card, and won't let you change your default PayPal payment method. You have to go through a process to select it Every.Single.Time, if you remember, and if you overlook to do it - well, what do you know, PayPal just saved the CC fee...
