PayPal will let some merchants accept Bitcoin

PayPal said today that a subset of North American merchants that accept payments online using PayPal can now accept bitcoin as a payment method, too. Bitcoin acceptance will be limited to those merchants that use Paypal to sell digital goods, such as ringtones, games and media.

These sellers will have to sign up with one of three bitcoin processors — Coinbase, BitPay or GoCoin — and then authorize a connection between the processor and their PayPal merchant account to start accepting the digital currency.