Bay Inc. payments unit PayPal as announced this week the integration of Bitcoin into its payment processing operations, allowing digital goods merchants to accept the virtual currencies via its PayPal Payments Hub service. Yes, this means they will be taking other cryptocurrencies as well.
EBay, as the world’s biggest web marketplace and operator of a global payments service, is the most significant business to date that’s embraced Bitcoin. The move could potentially enable PayPal’s 152 million registered accounts to transact using the virtual currency, spurring wider use and acceptance of Bitcoin.
PayPal as established an arrangement via partnerships with the three largest digital currencies payment-processing firms, BitPay, Coinbase and GoCoin. The announcement was followed by a significant rise of the Bitcoin price!
Besides Coinbase and Bitpay, the inclusion of GoCoin in the arrangement means that merchants will be able to choose to accept litecoin and dogecoin, two other virtual currencies that the processor handles in addition to bitcoin.
Steve Beauregard, CEO of GoCoin, stated:
“I think this is a monumental moment; having the implicit endorsement of PayPal is very pivotal for the Bitcoin ecosystem.”
This arrangement will initially be available for North American sellers of digital goods such as games, music files, eBooks and apps. The company feels it should serve as a “dry run” to further enlarge the integration operation.
Nevertheless PayPal’s announcement sounded like a great opportunity for the Dogecoin and Litecoin community, who have accepted PayPal’s decision as one step further to the mainstream adoption of digital currencies.
PayPal’s had already given hints of its interest when early this month Braintree unit said it would facilitate bitcoin payments for its e-commerce clients via an agreement with Coinbase. Braintree provides software for payments processing for many online and mobile companies such as rideshare app Uber, house sharing site Airbnb and online stores like Shopify.
Bill Ready, chief executive of EBay’s Braintree unit, has already confirmed in a conference in San Francisco that Braintree will begin working to integrate a Bitcoin payment option into its software in the coming months, so this might be also the same software PayPal and ultimately Ebay could be directly integrating in their platform in a near future.
The partnership announcement is great news for users of Litecoin and Dogecoin; this means that these currencies have now been fully recognized as being the number two and number three in the community acknowledgement.
Some are arguing that plenty of other crypto currencies are worthy of PayPal integration. But the partnership with GoCoin shows that PayPal seems to have chosen their preferred currencies.
In this case, GoCoin will be the main exchange leading the payment services for Litecoin and Dogecoin, but in a near future we will probably see more coins being accepted.