PayPal recently announced its partnership with three major Bitcoin payment processors: BitPay, Coinbase and GoCoin. The intent to assist digital goods merchants with the acceptance of Bitcoin payments beginning with those based in the US and Canada first.
PayPal has opted to integrate the third-party functionality with the PayPal Payments Hub since the three processors currently provide customers protection when using virtual currency. The company predicts that any product that may be obtained digitally will be sold in Bitcoin.
PayPal Senior Director of Corporate Strategy Scott Ellison said:
“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.”