Boston, MA 08/15/2014 (wallstreetpr) – eBay Inc (NASDAQ:EBAY), a global marketplace operator with almost $66 billion in market cap, is considering acceptance of the virtual currency Bitcoin, The Wall Street Journal stated in an article while quoting people with insider knowledge of the matter. However, the matter that currently remains confidential as the company still discussing further about it, signals a change of stance at EBAY given that the company originally showed a lack of interest in Bitcoin.
Shares of eBay Inc (NASDAQ:EBAY) declined 0.02% to $52.93 in the last session. But there was a gain of 0.51% in the aftermarket activity on the stock.
PayPal enrichment
eBay Inc (NASDAQ:EBAY) owns the popular online payment service PayPal, which was recently a subject of a heated exchange between the company’s executives and some investors. The bone of contention was whether the business should be spun off so it could freely do business even with EBAY competitors. However, EBAY executives prevailed in blocking the spinoff of PayPal. Now, the latest move about Bitcoin comes as an addition to PayPal or even an enrichment of the service. If all goes well, Bitcoin transactions will be performed by PayPal’s unit known as Braintree, a business that was acquired by EBAY for $800 million in December. It was processing in excess of $12 billion at the time of its acquisition.
Bitcoin fame and prospects
Braintree provides online and mobile payment solutions as some of its notable clients include Airbnb and Uber. However, Bitcoin is growing in popularity and experts say it could change the way people transact in the near future. That was why it looks like an impressive area for eBay Inc (NASDAQ:EBAY), which is also struggle to survive in its marketplace business, to invest in with hopes of better returns in the future.
The experts also say Bitcoin offers a great way to avoid financial fraud because its transactions are recorded.
eBay Inc (NASDAQ:EBAY)’s move on Bitcoin was widely expected, especially after its CEO John Donahoe hinted to the media that they were considering ways to integrate the service in their payment unit.
