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| PayPal temporarily suspends service in Russia |
Payments company PayPal has suspended services in Russia in response to violent military aggression in Ukraine, joining several financial and technology companies in suspending operations there after the invasion of Ukraine, according to a Reuters report.
Ukrainian Deputy Prime Minister Mykhailo Fedorov tweeted about PayPal CEO Dan Schulman, confirming the company's decision to end its operations in Russia.
"Under the current circumstances, we will suspend service to Russia," Schulman said in the letter. The Assembly joins the international community in condemning Russia's violent military aggression against Ukraine. We are doing everything we can to support our staff in the region during this very difficult time.
PayPal is only available for cross-border payments in Russia. In 2020, domestic services in Russia ceased.
The latest move affects its remaining operations in the country, including its sending and receiving capabilities and the ability to make international transfers through the Xoom money transfer platform.
Although PayPal stopped accepting new Russian users earlier this week. But he has now taken the drastic step of shutting down the service entirely.
The procedure also includes the company's money transfer tool Xoom. PayPal spokesperson Aidan Kelly said the company has been experiencing customer withdrawals. This ensures that account funds are allocated in accordance with applicable laws and regulations.
Ukrainian government officials have urged payment companies to leave Russia and help them collect donations.
PayPal no longer accepts new Russian users
"Since the invasion began, we have helped raise more than $150 million for charities supporting Ukraine's response," the payments company said. It's one of the biggest efforts we've seen in such a short time.
Many Russian users may not be able to pay with their card using PayPal. This is in the face of financial sanctions imposed by the United States, the United Kingdom, the European Union and many other countries.
Sanctions against Russia's largest financial institution have prevented some users from using Apple Pay and Google Pay.
The sanctions also prevent bank customers from making credit card payments to businesses and services registered in the countries where they are imposed.
The sanctions led to the ban of several Russian banks from SWIFT, the global interbank messaging network. While Visa and MasterCard say they are also blocking Russian financial institutions from their networks.
It's now nearly impossible to send money to anyone in Russia, said Charles Dillingboul, CEO of ComplyAdvantage, a fintech startup that helps companies comply.