Paypal’s Braintree Merchants Will Be Able To Trade In Bitcoin
EBay’s Paypal merchants and consumers will be able to trade in bitcoin as its unit Braintree has added support for virtual currency.
The chief of EBay’s Braintree unit Bill Ready announced in San-Fransisco at Techcrunch’s Disrupt SF conference that Paypal will start accepting bitcoins in coming months. This will be Paypal’s first foray into the digital currency — bitcoin.
Braintree was acquired by EBay for $800 million. It provides a payment gateway to the customers letting them process online and mobile payments. It lets the merchants process credit card payments by providing a merchant account. Braintree supports some big companies like Uber Technologies, a mobile car-booking service and Airbnb which is a home-rental service for travelers. Moreover, it supports Dropbox too.
If you do not know what bitcoin is and how it works, bitcoin emerged from a paper written by Satoshi Nakamoto and others in 2008. It is a virtual currency that lets people carry out transactions directly with other people using its open-source P2P approach.
However, there is no central authority responsible for carrying out transactions. It uses secure cryptographic methods to ensure that the payments are made in a safe manner. Bitcoin users also have a digital wallet installed on their machines.
Bitcoin started gaining masses in 2013. Dell Inc also started accepting bitcoin for the first time in July. Customers are now able to purchase Dell computers with the digital currency.
Now back to the EBay. EBay’s decision to integrate bitcoin into its Braintree unit is a success for bitcoin developers. EBay is world’s biggest Web marketplace and EBay’s Paypal unit has 152 million registered accounts. Hence bitcoin has found a very large user-base. Moreover, the move would persuade other businesses to start using bitcoin, especially the online businesses.
“PayPal integrating bitcoin into Braintree is a very substantial development,” Gil Luria, an analyst at Wedbush Securities Inc, said. “Not only will it make it possible for some of the fastest-growing apps to integrate bitcoin seamlessly, it opens the door for PayPal to integrate bitcoin into its main wallet functionality. If that happens millions of retailers will de facto be accepting bitcoin overnight.”
EBay’s support for bitcoin will also persuade developers, who were reluctant because they didn’t want to add an additional SDK for bitcoin, to start using it.
“We had a lot of developers tell us they’d love to add Bitcoin, but Braintree would handle all of their payments and they didn’t want to add another SDK. They would say that if Braintree added it, they would add it,” said Coinbase CEO Brian Armstrong.
Bitcoin is still not considered safe by many people who think that such a currency can raise many security issues, considering the unreliable nature of our Internet. But EBay is trying to prove otherwise.