Indonesia Lifts Ban on PayPal Use


Consumers in Indonesia can now begin using PayPal after the payments company registered in that country as an electronic systems operator.

As Reuters reported Wednesday (Aug. 3), PayPal was among several websites blocked by Indonesia over the weekend for failing to adhere to new licensing rules.

Those rules allow authorities to compel companies to disclose user data and to remove content that the government determines is unlawful or “disturbs public order.”

Also unblocked were Yahoo and the video game company Valve Corporation, both of which had been blocked Saturday, according to Indonesia’s Communications Ministry.

Johnny G. Plate, the country’s communications minister, urged citizens to avoid unregistered services “to minimize a loss that may incur, if … illegal acts occur in those private services.”

Reuters notes that the licensing rules have been criticized by activists and members of the public who worry the program will allow the government to monitor social media content. The rules were introduced in 2020, but companies such as Meta and Google registered within days or hours of the July deadline.

See also: PayPal: BNPL Volumes Surge 226% Year on Year

PayPal this week reported its quarterly earnings, which showed buy now, pay later (BNPL) volumes surging by triple-digit percentages.

CEO Dan Schulman said BNPL activity has been marked by $4.9 billion in volume, a 226% increase year over year — with the installment payment program used by 22 million consumers and offered by more than 200,000 merchants.

Schulman added that digital wallet engagement has been rising, with management noting that wallet users are twice as likely to choose PayPal when they’re at the checkout. The company, he said, is working on “a debit card reboot” which will be a metal form factor with built-in rewards, and which opens up the total addressable market by anywhere from 20 million to 30 million users.