PayPal is actively collaborating with German banks to address issues that impacted online payments for millions of consumers last week.
The Sueddeutsche Zeitung reported that Germany’s banking sector suspended €10 billion worth of payments due to concerns that PayPal’s security system failed to adequately vet transactions for potential fraud. This incident has heightened awareness around consumers’ dependence on the U.S. company for online payments, leading to increased interest in local alternatives, such as the European Payments Initiative’s Wero wallet.
In May, German banks decided to discontinue their domestic PayPal competitor, Giropay/Paydirekt, and instead support the continent-wide EPI initiative.
In a statement to Reuters, PayPal confirmed that the disruption has been resolved. “We apologize for the inconvenience caused by the recent events,” the company stated. “Safety remains our top priority. We are working closely with our banking partners to resolve any discrepancies on customers’ accounts. All legitimate merchant transactions will be fully reimbursed.”