Where I can see it working (and working well) is SaaS subscription services - it streamlines the signup process, provides additional data to the provider and pushes signups towards Paypal (and away from merchant account or other providers).
Also wouldn't it be trivial to make this pretty damn privacy invasive with the segmentation feature. I mean just profile when the site switches between the enumerations and you know pretty accurately what the average spend of people signing up for your site is. Combine that with a similar procedure for transactions per year and you have a decently accurate picture of spend / year. They might as well just have numbers instead of enumerations. I would not touch this with John Holmes' penis.