PayPal app displayed on iPhone.
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PayPal said on Saturday that it was suspending its services in Russia, further increasing the number of companies pulling out of the country in response to their invasion of Ukraine.
Dan Schulman, CEO of PayPal, said in a letter to the Ukrainian government: “In the current circumstances, we are suspending the PayPal service in Russia.
The letter was posted on Twitter by Ukraine’s Minister of Digital Transformation, Mykhailo Fedorov, who pressured businesses including Apple arrive Microsoft cut ties with Russia.
“So now it’s official: PayPal stops its services in Russia on the pretext of Ukraine aggression,” Fedorov tweeted Saturday. “Thank you @PayPal for your support!”
A PayPal spokesperson confirmed that the company will cease operations in Russia. The company will “continue to work to process customer withdrawals over a period of time, ensuring that account balances are dispersed in accordance with applicable laws and regulations,” the spokesperson told the BBC. CNBC.
The payment processor discontinued domestic services in Russia in 2020. This latest action concerns its remaining business in the country, which includes sending and receiving functions and the ability to do so. now make international transfers through PayPal’s Xoom remittance platform.
The company said Russians were prevented from opening new PayPal accounts earlier this week.
PayPal is the latest payment organization to cut ties with Russia, which is currently facing a series of sanctions from the West over President Vladimir Putin’s decision to invade Ukraine.
Sanctions have seen SWIFT, the global interbank messaging network, block some Russian banks, while Passport and Master Card this week said it would also block Russian financial institutions from their networks.
“It is now basically impossible to send money to any individual in Russia,” said Charles Delingpole, CEO of ComplyAdvantage, a fintech startup dedicated to helping companies comply with regulations.
