PayPal received a big slap on the wrist at the end of last month – in the form of a £5.2 million fine. The eBay-owned company agreed to pay this hefty settlement over allegations that it processed payments for an individual who was in the black market for nuclear weapons technology, amongst other sanctions violations involving people linked to terrorism.
Supposedly, PayPal facilitated transactions reaching thousands of pounds for goods and services going to and from Iran, Sudan and Cuba. The US Government bans companies from carrying out business with certain individuals or groups, based on a specific list of enemies of the country, according to Reuters. PayPal has since revealed that it has changed its process and paid the fine… but we want to know whether the scandal will affect ecommerce?
People will have their own opinions regarding the company’s “reckless disregard” of sanctions and, while it won’t interrupt PayPal’s day-to-day operations, customers may prefer to look to other payment options – Apple Pay or Google Wallet, for example. Some buyers may be compelled to abandon PayPal as their payment option; after all, human beings have feelings, compassion and morals. Online businesses should certainly prepare for sales without PayPal.
Do you think this judgement against PayPal is deserved, and would it stop you from using its payment services?