Paypal comes to Xbox 360

Microsoft has announced that part of the new 360 system update will bring Paypal to the system.
This update will allow Xbox LIVE players to make purchases through their Xbox 360 console via Paypal accounts.

Here's what they had to say:

I am happy to announce that, as a part of a new Xbox 360 System Update, we’re expanding our integration with PayPal to allow U.S. and international Xbox LIVE users to make purchases on their Xbox 360 consoles with their PayPal accounts.* Once you’ve linked your PayPal account to your Xbox LIVE account on Xbox.com, you’ll be off and running to use it as a billing option, allowing you to buy content such as Microsoft Points, Xbox LIVE Gold subscriptions and Games on Demand titles.
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!


This particular update will also bring an auto-standby feature that places your console on standby if it’s idle for more than one hour, helping to reduce power consumption. This feature will be automatically enabled after you download the update. You can change this setting in the System Settings on your console.
Finally, thank you to all who participated in the preview program for this Xbox 360 System Update. Your contributions helped us prepare for the updated Xbox 360 disc format capability that comes with this release.