Of course it ruins it....
suppose some of your customers were not into Paypal?Suppose those customers wanted your chips?Suppose they were rich?Suppose two customers wanted your chips and were both rich?Suppose that bidding war which was going to happen between them didn't happen because you would only allow Paypal? How much money have you lost?
I rest my case. NO WAIT......there is more...suppose you went to the gas station to get some gas when you were almost on empty and you had cash and a Visa card and Mastercard and Amex in your pocket. Now just suppose that gas station owner said that you can't use cash,or any of your credit cards to pay but had to use the special gas station credit card.Would you feel happy about that?