They also conflated PayPal, Apple Pay and Google pay, so I’m not sure I agree that what they were saying is “most people prefer PayPal”. PayPal has a tremendous market share - not sure I’d agree that it’s really a preference.
If it's the first option, it's probably cause it's preferred by customers. It doesn't do anything good for the seller. Little Snitch in particular has credit card on the LHS and PayPal to the right, which kinda suggests PayPal being secondary.
Sure it does. It gives them relatively more chargeback protection at the expense of the consumer. And yes I’ve heard all the seller griping that this isn’t the case - as if it would be expected that they could shield them from 100% of chargebacks - it doesn’t make it true. It’s relatively harder for a customer to even get forward in the dispute process with PayPal in the mix. These sellers often aren’t evening seeing these killed disputes.
I was always under the impression that PayPal sided more with the buyer, but I'm not so sure. Hard to tell either way. At least they support a wider range of disputes than a CC would, question is how many customers can get that far.