PayPal has joined Visa and Mastercard in blocking payments to websites offering downloads of pirated music.
The payment companies are working with City of London Police and the music industry to clamp down on sites that do not pay any royalties on the music they sell, according to the Daily Telegraph.
The payment companies will act on notifications from police that are based on complaints from the international trade lobby of the record industry, the IFPI.
PayPal, like Visa and Mastercard, will now require websites flagged by police to provide proof that the music they are selling is fully licensed.
Payment services have been withdrawn from 24 Russian and Ukranian websites so far, and the IFPI says it has handed over to police the details of another 38.
Earlier this month, the top five US internet service providers (ISPs) agreed with film and music producers to issue warnings to customers suspected of online piracy and to take action against repeat offenders.
UK communications minister Ed Vaizey believes the US agreement could pave the way for the UK to clamp down on websites hosting pirated material.
The government is looking for a way to stop websites hosting pirated material, but UK ISPs have so far resisted attempts by copyright holders to pressure them into filtering content.