Key Points
- PayPal experienced a technical issue affecting multiple products, disrupting transactions globally.
- The outage occurred as Bitcoin surged past $98,000. Cryptocurrency exchanges Coinbase and Kraken reported related disruptions.
- Nearly 35,000 user complaints about PayPal transaction issues were reported on Downdetector at 8:30 AM ET.
- PayPal acknowledged the issue and stated that its technical teams are working to resolve it.
Payments giant PayPal (NASDAQ: PYPL) reported a system issue on Thursday that is impacting several of its products, sparking disruptions in user transactions. This outage coincides with a historic surge in Bitcoin, which has soared past $98,000, pulling other cryptocurrency-linked stocks upward. PayPal, known for enabling clients to buy, sell, and hold cryptocurrencies, faces challenges as crypto markets experience a boom.
Major cryptocurrency exchanges, including Coinbase and Kraken, also reported related problems. Coinbase announced outages with PayPal transactions, while Kraken reported delays in deposits. These issues indicate widespread platform strain amid heightened market activity driven by the dramatic rise in cryptocurrency values.
As of 8:30 AM ET, the outage tracking platform Downdetector has registered nearly 35,000 user reports of problems with PayPal transactions. The company acknowledged the issue on its website: “Our technical teams are actively working towards resolving the issue.”
The timing of the disruption comes at a critical moment for the cryptocurrency ecosystem, with investors and traders leveraging platforms like PayPal for crypto transactions. While the root cause of the issue remains unclear, the surge in transaction volume tied to Bitcoin’s record-breaking rally may have contributed to the strain on payment systems.
Coinbase and Kraken posted updates on their websites informing users of service disruptions. Meanwhile, users expressed frustration over delayed payments and unprocessed crypto trades, underscoring the reliance on seamless platform functionality in volatile markets. PayPal has yet to provide further details about the issue’s scale or an estimated resolution timeline. The company’s statement emphasized its commitment to addressing the disruption swiftly.
This incident highlights the importance of robust infrastructure for platforms operating in the fast-paced digital payments and cryptocurrency sectors. As crypto adoption grows, service reliability becomes increasingly critical to maintaining user trust and market stability.
