The news does not mean that PayPal has added Bitcoin as a currency in its digital wallet or that Bitcoin payments will be processed on its secure payments platform. The company is just giving its digital goods merchants an easy way to test the waters with this new form of payment.
For some time now, Paypal helped merchants selling Bitcoin mining equipment to accept PayPal payments. But for security reasons, Paypal says it decided not to work with merchants who pre-sell these products.
In order to follow the laws and regulations, 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.
"PayPal is excited about all the innovations taking place in payments these days. More choices in how people create value, share it, buy, sell and trade it – that’s exactly what PayPal is all about," said Scott Ellison, Senior Director, Strategy, PayPal. "We believe Bitcoin offers unique opportunities as more people and businesses experiment with it. PayPal is excited to work with BitPay to offer new experiences and the trusted service our customers expect. We hope to do more together as the Bitcoin ecosystem continues to evolve."
Earlier this month, Paypal also announced that businesses working with Braintree would soon be able to accept Bitcoin as a payment option through their v.zero SDK and relationship with Coinbase.