EBay’s payment processing subsidiary, PayPal, announced it was ollaborating with the major bitcoin payment processors in order to position itself in the bitcoin ecosystem

eBay Inc (EBAY)’s payment service subsidiary, Paypal, announced that it will be affiliating itself with the three major bitcoin payment processors: Coinbase, Bitpay, and GoCoin. The announcement by Scott Ellison, who heads corporate strategy at PayPal, highlighted that the company’s Payments Hub system will enable merchants to accept bitcoins through the three payment processors. PayPal’s Payments Hub system uses single integration to allow customers to accept credit cards, mobile carrier payments, and other modes of payment.

The move also suggests that despite the initiative taken to advance into the bitcoin ecosystem, PayPal still does not intend to incorporate the digital currency into its own platform or allow its customers to store bitcoins in their digital wallet accounts.

San Jose, California-based PayPal is an e-commerce company that allows users to conduct money transfers and payments online. However, it charges a fee depending on the amount of the transaction. Paypal is a wholly owned subsidiary of eBay, which it acquired in October 2002 for $1.5 billion.

PayPal operates in 193 countries worldwide, and offers its services in 26 currencies. The company netted $6.6 billion in revenue last year, and has a user base of 143 million people all over the world. With such astounding figures, the company has the potential to provide new users and businesses to the bitcoin community.

The move reflects another step taken by PayPal to enter the digital currency market, after it announced earlier this month that its payments services subsidiary, Braintree, will begin accepting bitcoins. This would enable Uber and Airbnb customers to transact with the digital currency using Braintree, which was acquired by eBay in 2008 for around $800 million.

After yesterday’s announcement, the three payment processors will now be responsible for processing bitcoin payments for PayPal merchants. As of now, the service only extends to digital goods like online gaming, music, and ringtones. Mr. Ellison claims that digital goods are attractive to customers, who will find it easier to pay for them using bitcoins and will consequently be convenient for merchants as well.