eBay has announced that its PayPal service will add support for Bitcoin transactions over the coming months, Digital Spy reported.

The move will open up the virtual currency to PayPal's 152m registered users and allow merchants to accept it as legal tender.

Bitcoin PayPal transactions have been made possible by eBay-owned system Braintree, the same platform that makes powers Airbnb and Uber payments.

"We're announcing PayPal's first foray into Bitcoin," Bloomberg quotes Braintree head Bill Ready as saying. "Over the coming months we'll allow our merchants to accept Bitcoin. On the consumer side, it will be a sleek experience."

The move follows Apple's entry into the world of tap-to-pay transactions with the launch of its NFC-ready Apple Watch, a development that will bring virtual currencies a step closer to mainstream use in the real world.

The value of the Bitcoin currency has fluctuated this year following the collapse of the world's largest exchange MtGox in March.