Ebay's PayPal users hit by global outage

PayPal was shut down around the world yesterday, after eBay's online payment service encountered "internal problems".

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PayPal was shut down around the world yesterday, after eBay's online payment service encountered "internal problems".

The problems began at around 6:30pm GMT and affected users for about an hour, although for some the problems continued until 2:30am.

The online payment service, which is owned by eBay and has about 75 million active users, blamed an 'internal problem' for the outage.

"I haven't heard the absolute clear definition of what happened from the engineering team yet. I can confirm that it was an internal problem, not an external problem," eBay spokesman Anuj Nayar told Reuters.

EBay has said it would reimburse some sellers for loss of sales caused by the outage.

However, Kaufman Bros analyst Aaron Kessler said the outage was unlikely to dissuade customers from using the service.

"An occasional server shutdown happens to a lot of companies. Obviously you don't want to have it happen more than a couple of times a year or you do start to have brand or reputation concerns," Kessler said.

"But we've seen issues with Google, Netflix and Amazon.com over the last couple of years, so I don't think an isolated incident is a huge deal for these companies."

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