A number of payment and remittance platforms, now including Paypal, have restricted access to their services in Russia as western sanctions over Moscow’s invasion of Ukraine continue to expand. Fintech companies have been limiting operations in the Russian Federation also in response to Kyiv’s call for help.
Payments giant Paypal halts services in Russia and maintains withdrawals for now
Paypal, the global online payments provider, has joined a growing list of fintechs backing Western sanctions against Russia over its decision to invade neighboring Ukraine. The company, which only offered Russians cross-border transactions, ended its services in the Russian Federation on Saturday.
Quoted by Reuters, President and Chief Executive Dan Schulman explained the move with “the current circumstances,” noting that Paypal stands with the international community and condemns Russia’s military aggression against Ukraine. The platform stopped accepting new Russian-based users earlier this week.
Via a spokesperson, however, Paypal added that withdrawals will be supported for an indefinite period. The payments giant intends to “ensure that account balances are distributed in accordance with applicable laws and regulations”.
The announcement comes after calls from officials in Kyiv to suspend services in Russia and support Ukraine’s fundraising efforts. The U.S., California-headquartered company revealed before the weekend that it had “helped raise over $150 million for charities supporting response efforts.” The Ukrainian government and local NGOs have also received millions in crypto donations.
Paypal’s decision comes after other payment and remittance platforms had already suspended some services in Russia at the end of February. These include Wise, which handled cross-border payments for Russian users, and Remitly, which facilitated the transfer of funds.
U.K.-based fintech Wise initially imposed a £200 ($265) daily limit on transfers to the Russian Federation but later suspended all money transfers as the U.S. and its European allies imposed more restrictions on the country’s financial system, including the expulsion of some Russian banks from the interbank payment system SWIFT.
Following the tougher sanctions, Remitly also discontinued money transfer support for Russian recipients. Similar measures have also been introduced by other remittance service providers, including Transfergo and Zepz.
According to crypto media reports, the U.K.-based Revolut has suspended payments to Russia and its ally Belarus this while an announcement on its websites states that the fintech firm is doing everything to ensure its users are able to send money to Ukraine. In a blog post, the company CEO Nik Storonsky highlighted both his Russian and Ukrainian roots and voiced opposition to the war.
