Millions of users across the globe were left frustrated on Thursday after PayPal and its subsidiary Venmo experienced a sudden and widespread outage. The issue, which began around 11:50 a.m. ET (4:50 p.m. BST), prevented users from logging into their accounts, completing transactions, and accessing essential features.
According to data from DownDetector, a platform that tracks service disruptions, reports of technical difficulties spiked rapidly, reaching nearly 10,000 complaints within half an hour. Users from the U.S., U.K., Spain, Germany, and several other countries reported being abruptly logged out of their accounts and locked out when attempting to sign back in.
Businesses Struggle as Services Stall
The outage had a significant impact on business owners and merchants who depend on PayPal for daily operations. Many reported being unable to print shipping labels, process payments, or access their transaction history. For small businesses, which often rely on quick turnaround times for shipping and customer payments, even a short disruption caused considerable setbacks.
Some sellers mentioned delays in order fulfillment and expressed concerns over lost sales opportunities during the downtime. The inability to access funds or process payments left many merchants scrambling for alternative ways to handle transactions.
Venmo Users Hit by Similar Technical Failures
Venmo, the peer-to-peer payment app operated by PayPal, faced parallel issues throughout the outage. Users attempting to send or receive money encountered repeated error messages and system failures. Many were unable to complete payments or check balances, while others said they were logged out entirely and prompted to retry later.
The glitch disrupted not only casual payments between friends and families but also affected freelancers and small service providers who rely on Venmo for daily income transfers.
Companies Confirm Ongoing Problems
Both PayPal and Venmo acknowledged the technical issues via their official support accounts on X (formerly Twitter). Each platform confirmed that it was dealing with an “ongoing issue” and assured users that engineers were actively working to restore normal operations.
While the companies did not immediately specify the cause, they emphasized that resolving the outage was a top priority. By 12:15 p.m. ET, roughly 25 minutes after the surge in complaints began, some users reported partial recovery. DownDetector data indicated a steady decline in error reports, suggesting that services were being restored gradually.
However, a number of users continued to face lingering issues, such as delayed logins and incomplete transactions, for several hours after the initial fix.
Recurrent Issues Raise Reliability Concerns
This latest incident is not the first time PayPal and Venmo have faced widespread technical difficulties. Similar disruptions have occurred several times over the past year, each time affecting thousands of users worldwide.
In August 2024, both platforms suffered a global outage that sparked panic among customers who feared their accounts or funds had vanished. Many users at the time reported missing payments or transactions that appeared to have failed. The outage caused confusion, especially among individuals who rely on digital payments for rent, business operations, or freelance work.
PayPal eventually confirmed that the issue had been resolved but faced criticism for remaining silent during much of the disruption. The lack of prompt communication led to frustration and concerns over the company’s transparency in handling technical problems.
Users Voice Frustration Online
Thursday’s outage reignited long-standing frustrations among PayPal and Venmo users, many of whom took to social media to express their dissatisfaction. Posts across X, Reddit, and Facebook described difficulties logging in, sending payments, and completing purchases.
Several users criticized PayPal’s delayed response and questioned the reliability of a company that manages billions of dollars in global transactions. Others pointed out that this type of recurring problem could severely impact customer trust, especially for merchants and freelancers who depend on PayPal for income flow.
The outage also affected e-commerce sellers using platforms integrated with PayPal, such as eBay, Shopify, and Etsy. Merchants said they were unable to process payments or print labels using PayPal Shipping, a commonly used service for managing online orders.
For many, the timing of the disruption—during peak weekday business hours—made the situation even more inconvenient.
