Visa and Mastercard has suspended operations in Russia following its conflict with Ukraine. PayPal has also announced that it will be doing the same thing. Which is one more company in the currently very long list of companies doing that right now.
PayPal sent a letter to Ukraine’s minister of digital transformation Mykhailo Fedorov with an announcement to that effect. Federov shared the latter on Twitter for all to read. CNBC reports that a company spokesperson confirmed that it is indeed shutting down in Russia via a statement. Those in the country were also prevented from making new accounts.
We received a letter from @Dan_Schulman, CEO PayPal. So now it’s official: PayPal shuts down its services in Russia citing Ukraine aggression. Thank you @PayPal for your supporting! Hope that soon you will open it in for 🇺🇦 pic.twitter.com/RaJxEMSLQe
— Mykhailo Fedorov (@FedorovMykhailo) March 5, 2022
Though in the case of PayPal, this hits users in Russia in a different way as compared to Visa and Mastercard. The report also states that the payment processor had already discontinued domestic services in the country all the way back in 2020. So the latest development would affect its remaining business in the country. More specifically, the ability to send and receive funds, as well as the ability to make international transfers.
This means that, effective pretty much immediately, no one can send or receive money from anyone inside Russia. In the case of Visa and Mastercard, their products can still continue working until they expire.