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PayPal says it is working with German banks after widespread payment disruption
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PayPal says it is working with German banks after widespread payment disruption
Aug 29, 2025 6:14 AM

BERLIN, Aug 29 (Reuters) - PayPal ( PYPL ) said on

Friday that it was working to resolve any remaining issues

following a widespread disruption that had halted user payments

in Germany, raising alarm over the reliability of the app for

online transactions.

"We apologise for the inconvenience caused by the current

events. Safety remains our top priority," the company said in an

emailed statement to Reuters, adding that the disruption had

since been resolved.

"We are working closely with our banking partners to resolve

any discrepancies on customers' accounts. All legitimate

merchant transactions will be fully remunerated."

The company did not comment on the cause of the problem.

The Sueddeutsche Zeitung newspaper reported earlier this

week that German banks had halted 10 billion euros' ($11.71

billion) worth of payments on Monday due to concerns that

PayPal's ( PYPL ) security system had stopped vetting them for potential

fraud.

Germany's Bild newspaper reported on Friday that some users

were still having problems with the app, a popular method of

payment in the country.

A spokesperson declined to comment on the report directly.

The disruption has raised concerns in Germany about

consumers' reliance on the U.S. company to carry out payments

online.

A spokesperson for the German finance ministry declined to

comment on Friday when asked whether Europe should develop an

alternative to PayPal ( PYPL ) but said the recent incident showed the

importance of resilient systems of payment.

($1 = 0.8542 euros)

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