PayPal Problems Persist for Fifth Day

[Guest guest]

I'm not calling this one off topic since it affects so many on this list

....

 

*Smile*

Chris (list mom)

 

Many Wonderful New & Sale Items

Including Muscovado Sugar

http://www.alittleolfactory.com

 

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PayPal Problems Persist for Fifth Day

 

October 12, 2004 07:54 PM EDT

 

 

 

SAN JOSE, Calif. - Despite furious repair efforts, intermittent service

outages at the online payment service PayPal continued Tuesday for the

fifth consecutive day, affecting payments, log-ins and account

creations.

 

The technical glitch plaguing the eBay Inc.-owned company has affected

an untold number of users, making it hard for some online sellers to

complete deals, according to the eBay Web site.

 

Since some people are able to log in while others are not, eBay

spokeswoman Amanda Pires said the total number of affected users remains

unclear.

 

Meanwhile, financial analysts were monitoring the problem to see what

financial impact, if any, the glitch would cause the online auction

giant.

 

Caris & Co. analyst David Garrity said he was growing more concerned

each day with PayPal's technical troubles. " It is certainly something

that needs to get resolved, " he said Tuesday. " If the outages continue

much longer, it will hurt them in the fourth quarter. "

 

PayPal is a common method of payment for buyers on eBay and is gaining

in popularity among customers of other online retailers as well as in

money transactions between individuals in the off-line world.

 

The payment service has more than 50 million user accounts worldwide. It

processed almost 78 million transactions worth $4.4 billion in payments

during the second quarter, a 53 percent increase from the same period a

year earlier.

 

In July, eBay boosted its outlook for the rest of the year, citing in

part the strength of the company's PayPal division. Company officials

said they expect 2004 sales to be as high as $3.185 billion, $35 million

higher than it previously predicted.

 

The PayPal problem comes at the start of the season when many online

sellers are ramping up for the holiday season.

 

Users began experiencing some glitches on Friday following a software

upgrade to the PayPal system, eBay officials said. Ebay has posted

numerous apologies to users on its Web site and reassured them that

their account data and personal information have not been compromised.

 

" eBay and PayPal technical teams are working at full force to fix the

underlying problems, " the company said.

 

Shares of eBay closed Tuesday at $93.49, down 24 cents, on the Nasdaq

Stock Market.