Your argument wouldn't be totally confined to just PayPal. There...

Your argument wouldn't be totally confined to just PayPal. There are other existing payment methods available right now (eftpos, credit card, etc) where this could be happening. Nothing could stop that behaviour and I think Afterpay is doing just fine currently. This definitely wouldn't be a new loophole because of PayPal's bnpl.

Personally, I'd be interested to know why someone would go to the effort of doing the research and then switching to a different payment method. That makes no sense.