EBay payments unit will drive mainstream acceptance for Bitcoin
EBay Inc., owner of famous payment processing platform PayPal, is finally getting into Bitcoin.
Monday at TechCrunch Disrupt, eBay announced that Braintree, the company’s developer-centric payment processing subsidiary, would be experimenting with accepting the digital currency over the “coming months.” According to Braintree CEO Bill Ready, the company has partnered with bitcoin processor Coinbase in a move to embrace the cryptocurrency.
People won’t be buying tchotchke’s on eBay or sending bitcoins to friends via PayPal just yet, however. Braintree is a developer-centric startup that creates tools that allow websites to easily integrate payments into apps. This means that mobile and web developers who want to take in-app payments can easily just plug in Braintree’s service and away they go; with the addition of bitcoin, developers will soon be able to add the digital currency alongside other payment options.
Braintree was acquired by eBay last year for about $800 million and The Wall Street Journal first reported Braintree’s exploration of Bitcoin integrations last month.
“The reason why we were watching it up to this point is that a lot of things needed to be solved in order for us to have a leading use case,” said Ready. No exact date for integrations has been set, but Ready did mention that the past obstacles have surrounded regulation (a common concern for the bitcoin community.)
Two of Braintree’s better known customers include Uber and Airbnb, which means customers of these services will, in the coming months, be able to accept bitcoin.
The announcement grabbed headlines all Tuesday with the BBC, Wall Street Journal, Bloomberg, and Forbes running stories.
Continued strong market adoption
The year of 2014 has seen Bitcoin gaining notable mass market traction and adoption with BitPay and Coinbase leading the charge. Over the past eight months numerous large retailers have begun accepting bitcoins from Overstock.com, TigerDirect, NewEgg, and most recently Dell, Inc.
The addition of Braintree’s integration shows a continuous upward interest for merchants accepting bitcoin. It’s also an extremely safe bet when it comes to payment processing to reach out to in-app and mobile purchases first due to Bitcoin’s born-digital nature. While the currency is still a little bit difficult to participate with, services such as Coinbase and Circle show promise to make it easier to buy and transact with by making the currency easy to purchase with debit and credit cards via a primarily web and mobile interface.
Braintree brags over 150 million active users and numerous app developers and merchants and its proximity to PayPal may also signal the beginning of “mainstreaming” for the digital currency.
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