PayPal has announced earlier in the day its plans for partnerships with three major Bitcoin payment processors: BitPay, Coinbase and GoCoin.
Scott Ellison, PayPal’s senior director of corporate strategy, unveiled the news in a company’s blog post, saying: “Today we are announcing PayPal’s next step in helping merchants accept Bitcoin payments. PayPal has entered into agreements with leading Bitcoin payment processors BitPay, Coinbase and GoCoin.”
He went on, adding: “We chose to work with BitPay, Coinbase and GoCoin because of our commitment to offering innovative and safer ways for businesses to accept payments.”
“All three companies have taken steps to ensure that they know their customers and that those customers are offered certain protections. We believe digital goods merchants will be excited to work with these industry-leading companies to sell ringtones, games and music and get paid with Bitcoin.”
“PayPal has always embraced innovation, but always in ways that make payments safer and more reliable for our customers. Our approach to Bitcoin is no different. That’s why we’re proceeding gradually, supporting Bitcoin in some ways today and holding off on other ways until we see how things develop.”
“PayPal also needs to follow the laws and regulations in every market we operate. For this reason, virtual currency exchangers and administrators interested in working with PayPal in the future must secure the appropriate licenses and put anti-money laundering procedures in place.”
Initiallt Bitcoin payments integration will be noticed when using via PayPal’s Payments Hub to PayPal online merchants in North America, that is, with the exception of pre-sellers – merchants who ask for payment in advance for a product or service it will later provide.
Mr. Ellison explained to reporters that the reason for the partnership between Bitcoin processors and PayPal is because, “Merchants were asking for Bitcoin integrations.”
“This move comes after what seems like months of speculations of PayPal’s slow shift from appearing wary of cryptocurrencies towards adopting Bitcoin outright,” Coinspeaker reports.
First it was David Marcus, then President of PayPal, saying “We’re kinda thinking about it,” in reference to Bitcoin in 2013. Then in early September, eBay Inc.’s payment processing subsidiary Braintree (PayPal is also an eBay held unit) announced soon-to-come bitcoin acceptance.
PayPal is currently available in 193 markets and 26 currencies. All in all, the service has 143 million active registered accounts and $6.6bn in revenue at the end of 2013, the e-commerce giant brings the potential for new users and new business to the bitcoin economy.