PayPal Shuts Down to Greek Users

Online payment service PayPal is no longer accessible by users in Greece.

Already unable to withdraw cash from banks, which have been closed since last week in the run-up to yesterday’s referendum, Greeks cannot access their PayPal “wallets” and proceed with transactions.

On July 3, however, PayPal said a number of services, including receiving payments, were still available in Greece.

According to PayPal, “We are carefully following the situation in Greece, as well as developments in the negotiations between the Greek government and its lenders.”

“Due to the recent decisions of the Greek authorities on capital controls, funding of PayPal wallet from Greek bank accounts, as well as cross-border transactions, funded by any cards or bank accounts are currently not available. We aim to continue serving our valued customers in Greece in full, as we have for over a decade,” the company said in a statement.

PayPal relies on traditional banks and credit cards to transfer money, which demonstrates the difficulty in dis-intermediating banks from the flow of money.