Users Reported Issues Transferring Money on Thursday, October 16
PayPal and Venmo Outage: Thousands of users across the United States faced difficulties transferring funds through PayPal and Venmo on Thursday, October 16, sparking widespread concern about the reliability of the popular mobile payment platforms. According to outage tracking site Downdetector.com, reports of issues with both PayPal and Venmo began surfacing around 11:15 a.m. ET, with the number of complaints peaking around noon ET.
What Users Experienced During the PayPal Venmo Outage
During the downtime, users reported being unable to send or receive payments, log in to their accounts, or view transaction histories. Many took to social media platforms like X (formerly Twitter) to express frustration and seek answers. Downdetector confirmed the spike in reports, noting that “user reports indicate problems” with both PayPal and Venmo.
For individuals and businesses relying on the apps for daily financial transactions, the PayPal Venmo outage caused temporary disruptions. Some users were worried about delayed fund transfers, while others feared possible technical glitches affecting their balances.
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Company Response: “Service Disruption Resolved”
In a statement to USA TODAY at around 1 p.m. ET, PayPal acknowledged the issue, confirming that both PayPal and Venmo had experienced “a brief service disruption” but assured customers that the problem had been fully resolved. The company did not specify the cause of the outage, but emphasized that all systems were “now operating normally.”
Both PayPal and Venmo are critical parts of the U.S. digital payment ecosystem, serving millions of users for peer-to-peer transactions, online purchases, and small business payments.
PayPal and Venmo: A Growing Connection
PayPal has owned Venmo since 2013, and both platforms have been gradually integrating new features to make transactions between them smoother. In July 2025, PayPal announced that starting in 2026, users of both apps would be able to send money directly between PayPal and Venmo accounts, marking a major upgrade in their service network.
This move aims to strengthen user convenience and keep pace with competitors like Cash App, Zelle, and Apple Pay.
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The Bigger Picture: Are Digital Payment Outages Common?
While temporary outages like this are rare, they highlight how dependent modern consumers have become on digital finance tools. Even a short disruption can affect small businesses, freelancers, and individuals who rely on instant payments.
Experts suggest users should always have an alternative payment option ready in case of such technical issues.
Final Update: Systems Restored and Functioning Normally
As of Thursday afternoon, both PayPal and Venmo resumed normal operations, and transactions appeared to be processing without delay. Still, the brief PayPal Venmo outage served as a reminder of how critical stable online payment infrastructure has become in daily life.
