Major Nelson announced yesterday that you’ll now be able to associate your Xbox Live account with PayPal. If you live in the United States, you’ll be able to go in via the Xbox Live website and add your PayPal address, which can then be used to purchase points off the website.

That is to say, at the moment points are the only thing you can purchase. Since the PayPal link-up doesn’t extend to your console, you won’t be able to buy games or points directly from the dashboard like you do now with your credit card. We’re hoping that that update is coming sometime in the near future.