PayPal crashes leaving payments unprocessed

Payment service PayPal was offline for about an hour this morning causing problems for consumers that rely on its service to make and receive payments.

Payment service PayPal was offline for about an hour this morning causing problems for consumers that rely on its service to make and receive payments.

"It is back up now after being down for about an hour and payments are being processed," said a spokeswoman.

PayPal has millions of customers in the UK who use it to make secure payments including payments on websites such as eBay. It has to link into the main payments systems run by the banks.

Small businesses often use it because it is easy to set up and no formal agreement with a payment processor is required.

Gareth Lodge, analyst at Towergroup, said he is not aware of any problems before. "Overall, its reliability is very good over the last ten years."

He said the impact on users depends on where the fault was. "There are two parts to PayPal. You can make payments from PayPal to PayPal or getting payments from main banking payments infrastructure."

PayPal had not yet prepared a statement about the cause of the problems.

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