Xbox Live Update Introduces PayPal as a Payment Option

Long before millions of people were subjected to having their personal data stolen via a certain online network, I often wondered if there were better ways to pay for digital goods online, such as those found on Xbox Live or PlayStation Network, than to simply hand over credit card details. Of course, game cards are one option, but those can be a little inconvenient – especially if you’re not in the habit of going to an actual video game store.

As a regular PayPal user, I found it odd that few online services accepted payments through it, especially when Valve, the creator of the largest digital distribution system for games on the PC accepts it just fine. To be fair, PayPal does seem to have its own problems, and is a huge target of scam artists, but it’d at least be nice to have the option for those who use it (either by choice or necessity).

For those who, like me, have been hoping for such a thing to come to some console online service, it looks like MIcrosoft is the first to step up to the plate with Xbox Live. With an update that’s being rolled out to the consoles in certain regions, all online purchases will be able to be made via PayPal. That includes point purchases, Xbox Live Gold subscriptions and games-on-demand titles.

If not for the Sony fiasco, I’m certain that the Xbox still wouldn’t have this functionality, as Microsoft is far from being unaware that this has long been a demanded feature. Rather, the company is taking the opportunity to shine, and who can blame it? At least the company’s change-of-heart works out to the favor of gamers – at least, those who prefer not to use their credit cards online, or purchase game cards.

With Microsoft adopting PayPal as a payment option, it seems very likely that Sony will explore the same option in the months ahead. After the hassle it’s put its customers through, I think it’s inevitable that the company will want to provide a safer payment option in order to help regain the trust of its customers.

We are rolling out the Xbox 360 System Update gradually to all Xbox LIVE users starting today and throughout the next couple weeks to ensure a high quality deployment. Just like any other update to our service, you will know you’ve received it when you turn on your Xbox 360 console, connect to Xbox LIVE and receive a notification to download the update. It’s important to note that it may take a few days to make its way around the globe. Thanks for your patience if you don’t get it right away!