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Technical Problems Subside at PayPal

By MAY WONG | AP Technology Writer

8:05 AM EDT, October 13, 2004

SAN JOSE, Calif. - Most members of the online payment service Paypal should be able to log on to the Web site after five days of intermittent service outages and furious repair efforts, the company said.

PayPal made "good progress" in restoring service by the peak evening usage hours, the eBay Inc.-owned company announced late Tuesday.

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.

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.

Users began experiencing some glitches on Friday following a software upgrade to the PayPal system, eBay officials said. Ebay has reassured its users that their account data and personal information have not been compromised.

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.