PayPal Moves Closer To Integrating Bitcoin

PayPal Corporate Strategy Senior Director, Scott Ellison, announced through a community post on Tuesday that, in addition to PayPal subsidiary Braintree allowing clients to accept bitcoin transactions through its partnership with CoinBase, PayPal itself has also entered into agreements with BitPay, CoinBase and GoCoin to allow traders using PayPal to accept bitcoin on a limited basis. The service will first be offered in North America, and exclusively for digital goods.

“We chose to work with BitPay, Coinbase and GoCoin because of our commitment to offering innovative and safer ways for businesses to accept payments,” Ellison said. “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’s partnership with GoCoin has also allowed the payment service provider to adopt the two other lesser known digital currencies GoCoin supports, LiteCoin and DogeCoin. This is a significant boon for supporters of these currencies, with PayPal support effectively establishing them as numbers two and three in the cryptocurrency market.

In light of recent developments with bitcoin-related retailers and the FTC, PayPal has said that while it’s happy to continue providing service to bitcoin mining equipment vendors, it will refuse to partner up with merchants that pre-sell these products, as Butterfly Labs had.

“To safeguard customers, we’ve decided not to work with merchants who pre-sell these products,” Ellison continued. “This is consistent with our approach to pre-sales of other goods; we hold off anytime we determine that pre-selling may not provide a good buyer experience.”

PayPal were also quick to clarify that this agreement did not mean that bitcoin would be integrated into the PayPal digital wallet as a currency.

Regardless, CoinDesk report that the news of PayPal integration had seen the bitcoin price rise to a week-long high of US$443.69. This has since fallen back to $417.94, still above the currency’s traditional floor of $400.

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