bitcoin is an alternative monetary system, so bitcoin can't "replace" paypal, just take over paypal, so they will use Bitcoin instead or alongside the traditional monetary system, or make paypal obsolete. Ask if paypal would be replaced by Bitcoins is the same as ask if the credit cards will overcome Paypal
But I don't see any change for now, there is not enough demand yet
No hurry, you do not need to predict for current situations, what will happen after 2 or 5 years. Do you think any change will not occur even at those times. I expect paypal become obsolete.
Overcome is the right term to use here as PayPal may find its way of surviving for competing against bitcoin, so PayPal will exist but the percentage of being used by world population will be very less.