PayPal’s acceptance of the top virtual currency is much closer to being complete with an announcement Tuesday that it has partnered with the three of the largest bitcoin payment processors – BitPay, Coinbase and GoCoin.
Although this move falls short of the eBay-owned e-commerce pioneer integrating bitcoin into its payment processing services directly, it does serve as the first big move into the bitcoin community. This move follows the decision of PayPal subsidiary Braintree to partner with Coinbase earlier this month.
The partnership with the three bitcoin services providers was announced in a blog post by PayPal’s senior director of corporate strategy Scott Ellison.
It initially sent the price of bitcoin surging above $430 as of this writing after weeks of a bearish pattern that saw the cryptocurrency slip under $400.
“Starting today, these agreements let PayPal digital goods merchants accept bitcoin with a simple integration through the PayPal Payments Hub,” Ellison said. “This will be available to merchants in North America first.”
This means online merchants will now be able to accept bitcoin through all three companies via PayPal Payments Hub. The hub enables customers to accept credit cards, mobile carrier payments and other payment methods through a single integration.
PayPal did issue a cautionary flag about bitcoin:
“PayPal also needs to follow the laws and regulations in every market we operate,” Ellison said. “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.”