E-Commerce service provider
) Braintree unit is striving to integrate Bitcoin within its
Reportedly, Braintree, a mobile payment processing company, is
in talks with Coinbase - a third-party bitcoin payment processor -
and other bitcoin transaction providers to integrate the virtual
currency within its payment platform.
Bitcoin is a digital currency platform with no central
regulating authority involved in the transactions which are carried
out directly between the involved parties. It is also called crypto
currency because it utilizes military-grade cryptography to protect
users against fraud.
Payments using Bitcoin can be made via different smartphone apps
or their online versions. This is generally used for transferring
funds electronically and does not require a credit card or PIN.
Last year, eBay acquired Braintree for $800 million in cash, in
a bid to enhance PayPal's mobile payments capabilities. Braintree
helps businesses set up online payments through merchant accounts,
mobile apps, credit card storage and payment gateways. Its payment
platform is used by many online and mobile startups, including
Uber, Airbnb, Rovio, TaskRabbit, LivingSocial and OpenTable.
This could be a big move by Braintree as Bitcoin enjoys wide
acceptance and enormous popularity. According to a website tracking
the digital money's use, CoinDesk, approximately 63,000 businesses
handle bitcoins and have set up more than 5 million digital wallets
to keep their holdings. Recently, Expedia (
) announced that it will allow users to pay for hotel
accommodations using bitcoins.
PayPal is taking all the necessary measures to enhance the
mobile payment business growth. It is pushing beyond its online
payments service and expanding its offline, mobile and online
offerings to stores, restaurants and other businesses.
Though eBay's payment business shows great promise, competition
remains a major headwind. However, the latest move could position
PayPal better against rival mobile payment systems such as
Amazon.com Inc.'s (
) recently launched Amazon Payments, Intuit Inc.'s (
) GoPayment and Starbucks backed Square Inc. and others.
Currently, eBay's shares carry a Zacks Rank #3 (Hold).
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