Overview

• PayPal confirmed a temporary service interruption that sent unfiltered direct-debit instructions to banks, said the cause was identified, and reported it is updating affected accounts.
• Bayerische Landesbank, Helaba and DZ Bank halted PayPal Lastschriften, with reports estimating more than €10 billion blocked overall and about €4 billion at BayernLB alone.
• The German Sparkassen association said unauthorized PayPal debits disrupted payment traffic across Europe and reported transactions to and from PayPal were back to normal on Tuesday morning under monitoring.
• Merchants did not receive funds and customers reported failed payments, negative wallet balances or “insufficient funds” notices, even though money often remained in their bank accounts.
• Regulators, including the ECB and Luxembourg supervisors, were notified; a recent darknet trove of PayPal credentials was widely reported, though any connection to this incident is unclear.