Paypal will be included as a new payment option as of the upcoming May 19 dashboard update. It can currently be selected as a billing option when setting up a console via the Xbox accounts website, but this update enables users to select it via the dashboard when paying for memberships and downloadable content.
The spring update will also ensure that consoles are ready for Microsoft’s new disc format which will be implemented later this year. The new disc format will enable more storage on DVDs along with better copy protection. Avatar Kinect will also be released as part of a separate update on May 27. Microsoft has stated that the dashboard update will be rolled out in six installments between May 19 and May 30 to ensure “high quality deployment”.