I would love to see more services like this accessible outside the US. If PayPal is the 800 pound gorilla in the US it is the 1000-pound-armour-plated-gorilla-with-phasers-set-to-evaporate in Europe.
(1) US laws make it rather hard for payment companies to operate outside the US (mainly due to money laundering laws). If you want to operate in Europe it seems much easier if the whole company is located there.
(2) There's just not as much demand for this. The US banking system feels archaic and you typically can't even electronically transfer funds between bank accounts (if not both of the accounts belong to yourself). In Europe - on the other hand - you typically can do free wire transfers and just need the recipient's IBAN and BIC numbers for this.
But you have to consider that for end consumers the transfer fees are just ridiculous. Depending on your bank account settings it is not unusual to have a €15 transaction fee + 0.20% of the transfered amount. I have often customers from other EU countries who don't have PayPal and prefer sending money through registered mail just because other options are not economical for smaller amounts of money.
So far I have bank accounts in Austria and Germany and in both countries transfers to any other bank within the EU are completely free (and I don't have to pay any monthly fee for the bank accounts either).
The user interface is also quite OK for those banks. Just enter the transaction information on the Web site and confirm the security code sent to you via short message.
