European banks hit by rogue PayPal payments worth 'billions'

"incidents involving unauthorized direct debits initiated by PayPal against various credit institutions"

"certain transactions from our banking partners and potentially their customers"

"We quickly identified the cause and are working closely with our banking partners to ensure that all accounts have been updated,"

"Payment transactions to and from PayPal have been running normally again,"

Millions of suspicious direct debits originating from PayPal were reported by European banks, prompting payment pauses and blocking roughly €10 billion in transactions. The German Savings Banks Association confirmed incidents of unauthorized direct debits initiated by PayPal against credit institutions. PayPal reported a temporary service interruption affecting certain transactions from banking partners and customers, said it identified the cause and worked with banks to update accounts, and assured payment transactions resumed normally. The disruptions had significant effects across Europe, particularly in Germany, and supervisory authorities were informed. PayPal shares fell about 1.9% following the incident.

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