PayPal announces cooperation with Bitcoin payment processors

    Scott Ellison, CEO of PayPal Corporate Strategy, in his blog post announced the company’s collaboration with the largest Bitcoin payment processors: BitPay, Coinbase and GoCoin. He explained that online merchants will now be able to accept Bitcoin through the PayPal Payments Hub, a payment integration service that allows merchants to easily accept credit cards, transfers through mobile operators and other payment methods.


    Allison praised BitPay, Coinbase and GoCoin for their serious approach to ensuring the safety of users of their platforms. He also suggested which client groups would like the new proposal:
    We believe that sellers of digital goods will be delighted with the opportunity to work with these leading companies and sell ringtones, games and music for bitcoin.

    Notably, this PayPal announcement follows the recent decision by their Braintree subsidiary to partner with Coinbase.

    PayPal is available in 203 markets of the world and has 148 million active accounts, works with 26 world currencies and has $ 6.6 billion in annual revenue (as of the end of 2013). This e-commerce giant has huge potential for the Bitcoin economy.

    According to Ellison, PayPal supports innovation, and therefore is ready to support Bitcoin at such an early stage. The company will oversee the development of Bitcoin as a means of payment.

    PayPal will earn referral payments from BitPay, Coinbase and GoCoin. So the new offer will not affect the prices or commissions of these services.

    In a statement, Allison also mentioned that PayPal oversees discussions about the regulation of cryptocurrency and intends to work only with companies that provide some protection to consumers. And since PayPal must follow the local laws in every country where it works, entrepreneurs working with Bitcoin will need to have licenses and procedures that are in compliance with local laws that prevent money laundering.

    At the moment, PayPal intends to support only Bitcoin, since the rest of the cryptocurrencies have only "lit up", but so far only Bitcoin has reached a significant scale.

    Source: Coindesk: PayPal announces first partnerships in bitcoin space

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