German banks block billions in Paypal payments

Chaos has erupted at PayPal, as banks in Germany halted direct debits worth over ten billion euros due to a failure in the company's security system. Bayerische Landesbank reportedly blocked around four billion euros, with other banks following suit. This disruption leaves merchants waiting for payments while customers hold onto their funds.

Users across Germany are facing significant issues with online payments, as many services are listed as "Under Maintenance" on PayPal's status page. The situation has raised alarms at the European Central Bank, amid concerns over recent data breaches revealing customer information. The financial regulator in Luxembourg is monitoring the incident, while consumer protection agencies warn of potential scams exploiting user uncertainty.