PayPal is working with German banks to resolve issues that disrupted online payments for millions of consumers last week.
The Sueddeutsche Zeitung reported that the country’s banking sector had blocked €10 billion in payments on Monday, citing concerns that PayPal’s security system had failed to properly vet transactions for potential fraud.
The incident has highlighted Germany’s reliance on the US-based company for online payment transactions and boosted interest in local alternatives, such as the European Payments Initiative’s Wero wallet.
German banks had scrapped their domestic PayPal competitor, Giropay/Paydirekt, in May and instead backed the continent-wide EPI startup.
In an e-mailed statement to Reuters, PayPal said the disruption had been resolved.
“We apologise for the inconvenience caused by the current events,” PayPal said. “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 remunerated.”
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