Why PayPal, Venmo Down: Thousands of US Users Locked Out of Accounts

Thousands of users across the United States reported on Thursday that they were unable to log into their PayPal and Venmo accounts, see their balances, or transfer funds. The outage, which began around 9 a.m. ET, has disrupted transactions and left many unable to access their money.

The issue was first flagged by Downdetector, which showed a sharp spike in complaints. Both PayPal and Venmo apps and websites are affected, locking users out and preventing essential transactions. As of now, neither company has issued an official explanation.

PayPal, Venmo Outage: What’s Happening Right Now

The outage has left users frustrated and confused. Many reported being kicked out of their accounts and unable to log back in. Others complained they could not view their balances or withdraw money, leaving them unable to make purchases or pay bills.

“Trying to order food but can’t as the money is locked on my account,” one user wrote. Another added, “Nothing is working for me. Not the app or on my desktop. Seems as if they are working on it though.”

Venmo, which is owned by PayPal, is experiencing the same issues. Users shared similar complaints, saying the app was “completely offline for 20 minutes” and displaying repeated error messages. Some feared they had been locked out of their accounts entirely, while others worried their money was being “held hostage.”

PayPal and Venmo have not confirmed the cause of the outage. It remains unclear whether the disruption is due to a technical glitch, a server issue, or another underlying problem. The outage follows a major YouTube disruption just one day earlier, leading some to speculate about broader service instability this week.

Impact on Users and Online Transactions

The outage is having a significant impact on users who rely on PayPal and Venmo for daily financial tasks. Many are unable to pay for essentials such as gas or food, while others cannot send or receive payments. Small businesses and online sellers who depend on PayPal for transactions are also affected.

“I’m on with PayPal being down. What I’m not ok with is y’all keeping my damn money hostage!! I need to grab gas on my lunch break!!!” one frustrated customer wrote on social media. Another said, “Now Venmo kicked me out — won’t let me login. App or laptop.”

Because Venmo operates on PayPal’s infrastructure, issues affecting one platform often impact the other. Until the problem is resolved, users are advised not to attempt critical transactions and to monitor official status updates for both services.

The outage is ongoing as of Thursday evening, and the reason behind the disruption remains unknown. Users are urged to stay patient and avoid repeated login attempts until services stabilize.

FYI (keeping you in the loop)-

Q1: Why are PayPal and Venmo down?

The cause has not been confirmed. It may be due to internal system issues, server overload, or a temporary technical failure.

Q2: When did the outage start?

The first major spike in user complaints appeared around 9 a.m. ET on Thursday.

Q3: Are funds safe during the outage?

Yes, there is no indication that user funds are at risk. Access should resume once the issue is fixed.

Q4: Is the outage limited to the U.S.?

Most reports are from U.S. users, though minor disruptions could affect other regions.

Q5: What should users do now?

Monitor PayPal and Venmo status pages and wait for official updates. Avoid critical transactions until service is restored.