Well, for one, it wasn’t much of a fiasco, as Matt Graves, COO of Bitpass explained it to me yesterday…on PayPal’s part, it was a bit of a clerical error, and the company has apologized profusely to BitPass on it. For BitPass, it was some sort of a wake-up call, and the startup realized that it needs to quickly add on new payment methods and not be depndent on one or two. So it is planning on adding things like mobile payments to replenish the account.
Also, as Paypal itself explains in a comment post on this site: “Over the weekend BitPass’ PayPal account was suspended pending assurances that BitPass and PayPal were in compliance with the US Patriot Act given the nature of the respective companies’ services. PayPal did not intend to disrupt payment processing and we are reviewing our procedures to ensure that this situation doesn’t happen in the future. PayPal has been in direct contact with BitPass on the matter and BitPass’ account was fully restored this morning. Contrary to speculation, this incident had nothing at all to do with competitive issues and in fact PayPal supports companies such as BitPass, Cybersource and Xoom that are building complementary services.”
Related: Paypal Freezes BitPass Accounts
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