Consumers may soon be able to pay for their Airbnb rentals or Uber car rides using bitcoin.
EBay Inc. has been quietly working to integrate acceptance of the virtual currency into its Braintree payments subsidiary, part of its PayPal unit, according to people familiar with the matter.
Those people said PayPal officials have meet in recent weeks with several companies that facilitate bitcoin transactions, including Coinbase Inc. PayPal has yet to reach any agreements, the people said. The timing of when Braintree would accept bitcoin is dependent in part on such a deal.
Braintree provides software for payments processing to many online and mobile companies like Uber and Airbnb.
EBay and PayPal wouldn't initially accept bitcoin, the people familiar with the matter said, but that could change over time. EBay Chief Executive John Donahoe told The Wall Street Journal last year that he was considering ways to use bitcoin.
A deal would provide a boost to bitcoin, a virtual currency that backers believe can someday displace cash or credit cards in many transactions.
Overstock.com Inc. OSTK +1.04% is among the biggest retailers that accept bitcoin, through a deal with Coinbase struck earlier this year. Overstock said this week that it expects sales of goods using bitcoin to be $6 million to $8 million this year and to average $1 million a month by year-end.
Braintree was processing more than $12 billion in payments annually when it was acquired by eBay EBAY -0.02% in December for $800 million in cash.
Bitcoin is created by computers solving complex math problems. Once created, bitcoins can be traded on currency exchanges or used as money to purchase goods and services from merchants that accept it.
Because ownership and many transactions are recorded, backers believe the virtual currency is less subject to fraud. Some bitcoin users have adopted the currency because it isn't backed by any country and can be traded with less scrutiny.
But bitcoin has been plagued by volatility and the collapse of a major exchange. The currency was being sold on some exchanges for more than $1,000 at one point last year and is trading at about half that value today. The value of all bitcoin is $6.7 billion, according to Coindesk's price index.
The virtual currency is also attracting regulatory scrutiny. The Consumer Financial Protection Bureau said this month that it is soliciting comments about virtual currencies, potentially prefacing legal action against bitcoin marketplaces suspected of violating consumer law.
Source:
http://online.wsj.com/articles/ebay-...oin-1408052917
