On Monday, PayPal suffered a global outage that slowed down its performance; however, eBay has stated that the online payment processor is almost completely back to its normal level of performance. PayPal started to have problems with its website about one hour ago, limiting its ability to receive and send payments. On his blog, PayPal spokesman Anuj Nayar posted just before noon Pacific time that “We have all hands on deck to get this fixed,” and apologized for the inconvenience. At 12:40 pm PDT, an update indicated that most of the site’s functions were online. Nayar stated that the outage affected customers worldwide. The most serious problems lasted for about one hour, and complete functionality was restored by 2 pm PDT.
For any merchant depending on PayPal to process e-commerce transactions, this could be an expensive outage. The average flow of money through PayPal is about $2000 per second, according to the company. Thus, a one-hour outage could reduce turnover by $7.2 million! According to its developer’s site, PayPal suffer outages to its web page and its application programming interface (API), which allows applications to bypass the Web site when conducting transactions.