UNITED STATES | According to PayPal's Blog Post, they have entered into agreements with the leading Bitcoin payment processors BitPay, Coinbase and GoCoin. The agreements will enable PayPal's digital goods merchants to accept Bitcoin payments through a simple integration with their PayPal Payments Hub. PayPal will first support acceptance of Bitcoin in North America.
Get Paid with Bitcoins
PayPal's Scott Ellison, Senior Director Corporate Strategy, in his blog post: "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."
Why PayPal chooses for Digital Merchants
For now, PayPal has decided not to work with online merchants selling physical goods and accepting payments up-front before shipping. As Bitcoin has no chargeback mechanism - ensuring shoppers would get their money back in case of non-delivery disputes or bankruptcy of the merchant - PayPal decided not to support Bitcoin payments for retail sales for now. Bitcoins can only be accepted for purchases of digital content (ringtones, games and music).
PayPal's Payment Hub
The PayPal Payment Hub is basically PayPal's Payment Gateway that enables online merchants and businesses to integrate payments into their shop or checkout through one single integration. It supports customisable APIs or hosted payment pages to take cards, PayPal, prepaid cards, bank transfers and now Bitcoin payments. Click here for more information on PayPal's Payment Hub.
Bitcoin not in PayPal Wallet. Yet.
Scott Elison emphasises in his blog post that PayPal has not (yet) added Bitcoin as a currency in their digital wallet or that Bitcoin payments will be processed on their secure payments platform. PayPal takes a gradual approach, sees how things will develop and determine their Bitcoin strategy.
PayPal's Braintree will also support Bitcoin acceptance
Earlier this month PayPal announced that businesses working with Braintree - supporting online business to take cards by integrating simple lines of codes - will soon be able to accept Bitcoin as a payment option through their innovative v.zero SDK and relationship with Coinbase.