US PayPal Merchants Can Accept Bitcoin Starting Today

Published at: Sept. 23, 2014

The excitement around PayPal’s first foray into Bitcoin via Braintree is barely over, but now the company has announced its merchants will be able to opt to accept Bitcoin as payment – from today.

In a unexpectedly quick move, PayPal Senior Director of Corporate Strategy Scott Ellison announced partnerships with Coinbase, BitPay and GoCoin to facilitate immediate Bitcoin functionality to the first round of merchants based in North America.

“Today we are announcing PayPal’s next step in helping merchants accept Bitcoin payments. PayPal has entered into agreements with leading Bitcoin payment processors BitPay, Coinbase and GoCoin,” Ellison writes in a press release. “Starting today, these agreements let PayPal digital goods merchants accept Bitcoin with a simple integration through the PayPal Payments Hub.”

“Today we are announcing PayPal’s next step in helping merchants accept Bitcoin payments. PayPal has entered into agreements with leading Bitcoin payment processors BitPay, Coinbase and GoCoin.”

The advancement will take the form of an opt-in feature merchants can enable, and PayPal makes it clear that the process is not tantamount to complete integration.

“… Today’s news does not mean that PayPal has added Bitcoin as a currency in our digital wallet or that Bitcoin payments will be processed on our secure payments platform,” Ellison says. “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.”

He added however that the options for future development remain very much open:

“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.”

The press release contains what appear to be reassurances that any dealings with Bitcoin are being carried out according to the letter of the law, and that adherence to legislation will be the main conditioning factor governing the pace and extent of future roll-outs.

Given the international presence of its Bitcoin industry partners, however, it seems safe to say that the North American market will not be alone for long.

GoCoin, which recently rolled out its payment processing service to over one thousand international businesses, is a particularly interesting addition, working extensively with Litecoin and Dogecoin payments.

“GoCoin will be launching a number of new coins in the coming month. It will be the option of the merchants which they elect to accept. From our perspective they should accept all because we insulate them from the risk,” GoCoin CEO Steve Beauregard told Cointelegraph via email.

PayPal’s strategy would thus indeed point to consideration of the community beyond Bitcoin. Making any acceptance optional provides a significant test environment, where uptake will be measured without risk.

“In my view, PayPal has done their homework to understand the benefits to their merchants of accepting digital currencies. They are also being very strategic in partnering with the big three industry leaders each with very different approaches and with different vertical market focus,” Beauregard continues.

“The ultimate decision which digital currency payments processor is selected will be in the hands of the merchants yet PayPal will benefit in all cases.”

PayPal meanwhile also mentioned it will continue its preexisting support for Bitcoin mining equipment sales, but will stop short of working with providers who pre-sell prior to release.

“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,” Ellison explains.

The latest news is set to reshape the community response to Bitcoin acceptance among major fiat-based payment entities. The classic discussion of how Bitcoin ‘is better’ than PayPal, in particular, will take on a different form as the two options slowly become more extensively amalgamated.

What remains to be seen is how Bitcoin, or indeed other currencies in future, will be supported at the customer level; whether the knowledge is in place to deal with a new area of queries, complaints and disputes, and the realities of integrating Bitcoin’s ideals with PayPal’s own.

Did you enjoy this article? You may also be interested in reading these ones:

Ebay CEO: Paypal Will 'have to integrate digital currencies' How Businesses Can Start Accepting Bitcoins
Tags
Related Posts
PayPal to start letting US customers pay in Bitcoin at global merchants
Online payments giant PayPal will start to accept cryptocurrency as a medium of exchange at its millions of global merchants, the firm’s president and CEO revealed on Tuesday ahead of a formal announcement. News broke regarding PayPal’s rumored decision to accept cryptocurrencies early on March 30. Later in the day, the firm’s CEO, Dan Schulman, confirmed to Reuters that the rumors were true and that an official statement would be released imminently. The new system is expected to feature a crypto checkout service where users can pay for goods and services at approved vendors using their stored coins. The system …
Adoption / March 30, 2021
PayPal’s crypto integration means Bitcoin could triple its user base
Bitcoin (BTC) price has again punched through the $13,000 mark after yesterday’s PayPal’s announcement sparked a powerful rally which drove the price to a new 2020 high. Currently sitting near $13,100, Bitcoin price has rallied nearly 10% since the announcement and BTC is now close to overtaking PayPal as the 21st biggest asset by market capitalization. PayPal’s crypto announcement comes two weeks after Square, another payments giant, announced its own foray into Bitcoin by investing roughly 1% of its assets into Bitcoin. According to Lanre Jonathan Ige, a researcher at 21Shares, the continuing trend of large sized investments will be …
Adoption / Oct. 22, 2020
Demand for PayPal’s crypto offering exceeded all expectations, CEO says
The demand for cryptocurrency exceeded PayPal’s initial expectations after the firm launched crypto trading in late 2020, according to the company’s CEO. “Demand on the crypto side has been multiple-fold to what we initially expected. There’s a lot of excitement,” PayPal president and CEO Dan Schulman said in a Sunday interview with Time magazine. Schulman said that existing financial infrastructure needs modernization because it’s “inefficient today” due to overly expensive, slow international transactions. The CEO predicted that the financial system is poised to see more changes in the next five to 10 years than it has experienced over the past …
Adoption / April 26, 2021
Bitcoin shortage is real, and PayPal is the cause, Pantera Capital claims
PayPal’s entry into the cryptocurrency market could be having a dramatic impact on the Bitcoin (BTC) price. In a newly published report, crypto investment firm Pantera Capital says a Bitcoin shortage is at the heart of the recent price surge and that the majority of newly minted BTC is being scooped up by PayPal. PayPal’s new crypto service is “already having a huge impact,” Pantera claims, adding that the payment merchant is snatching up roughly 70% of all the new BTC in circulation. Citing itBit data, Pantera claims: “When PayPal went live, volume started exploding. The increase in itBit volume …
Adoption / Nov. 20, 2020
AMC Theatres debuts online Bitcoin payments after months of teasing
American cinema giant AMC Theatres is finally adopting cryptocurrencies like Bitcoin (BTC) for online payments following months of teasing the new payment option. AMC CEO Adam Aron announced Thursday that the company now proudly accepts four major cryptocurrencies including Bitcoin, Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) for online payments. The new payment method already accounts for 14% of AMC’s total online transactions, Aron said, adding that cryptocurrencies join traditional payment options like Apple Pay, Google Pay and PayPal, the CEO wrote. Dogecoin (DOGE), a popular meme cryptocurrency that skyrocketed 9,000% over the past year, will be the next …
Adoption / Nov. 12, 2021