Everyone should keep in mind what exactly this is and is not. This is not a replacement for cryptocurrency transactions themselves, rather a move by PayPal to corner the point of sale payment processing for cryptos. Like if you go to a store and want to pay with cryptocurrency.

From what I can see it isn't exactly groundbreaking stuff. It requires PayPal to act as a trusted party in the transactions. Ironically they are trying to get their piece of the pie by doing what many cryptocurrencies are trying to disintermediate (kill the middle man like PayPal)

Let's pretend this had nothing to do with cryptocurrency for a minute and think of it like regular money. What they are proposing is a complicated version of a prepaid credit card. People will still need money to fund a prepaid card(secondary wallet), then that prepaid card is just given to the other person.

You still need to be verified by PayPal in some way. Either by putting your BTC or other cryptocurrencys into their system first. Or by some agreement to repay them if you don't hold the money within their system based on our unreliable system of credit scores.

What is concerning is that this patent is all basically possible through bitcoins own improvement protocols through use of escrow and multisig. For shits and giggles someone should offer a prize to a high school kid to build a dapp with Ethereum that makes this look like child's play. They have just patented a glorified and highly unoriginal smart contract.

Before they have a chance to push out a wallet, Lightening, Truebit, and ZCash's Sapling update will likely make the whole concept want to crawl in a hole to contemplate a new scheme for getting a piece of the action they fear losing.