PayPal Company Braintree Partnering with Coinbase, Will Accept BTC
Braintree, a payment processing company owned by Paypal, which is in turn owned by Ebay, has announced a partnership with Coinbase to allow its clients to accept bitcoin.
Coinbase announced Monday that it had partnered with online and mobile payments platform Braintree, owned by PayPal and thus eBay, to process Bitcoin payments.
Once the new service launches, Braintree merchants will then be able to accept bitcoins.
“Braintree merchants using Coinbase will receive all the benefits associated with accepting bitcoin payments, including 1% flat transaction fees (waived for the first $1M in bitcoin sales) with no additional costs, all while avoiding exposure to any currency volatility risk thanks to Coinbase’s Instant Exchange feature,” Coinbase posted on its blog.
Neither Braintree nor Coinbase have announced when bitcoin payment processing will begin, but Coinbase urges Braintree merchants to reach out at the address email@example.com to be notified of when the service launches.
Braintree merchants include Airbnb, Uber, Github and StubHub. No word yet which — or whether any — of those companies will be introducing bitcoin payments. Re/Code also reported Monday that there is no indication that PayPal or eBay will begin processing bitcoin payments themselves, either.
But there are indications elsewhere.
PayPal just launched a video, called “PayPal Voices,” on Monday touting one-tap payments. “Our phone is our wallet,” the video’s voiceover says. “We can spend bitcoin with a tap.”
You can see that video here:
TechCrunch covered Braintree’s new one-touch payment feature on Monday. The site quotes Braintree CEO Bill Ready as saying one big challenge with mobile payments is friction: Users have to input payment data into clumsy forms when using traditional payment options such as credit cards.
Eliminating that friction will ultimately be good for merchants, he argued.
“We’re able to get to a better conversion rate on mobile than on desktop,” Ready told TechCrunch. “You should be able to get a strong amount of ecommerce sessions on phones and buys.”
We first reported that Coinbase was in talks with Braintree in mid-August. “We do believe that Bitcoin will play an important role in payments in the future, but we have nothing to announce,” eBay spokesperson Jennifer Hakes told Reuters at the time.
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