Is Venmo and Paypal down today? Live updates on outage, user impact and alternative payment options

Is Venmo and Paypal down today? Millions of users in the US faced issues using PayPal and Venmo on Friday, August 1, 2025. Both platforms experienced widespread outages, interrupting essential financial transactions. The incident started in the morning and affected individual users and businesses alike.

Venmo and Paypal Payment Disruptions Begin Early Morning

The outage began at around 8:45 a.m. ET. Down Detector recorded over 1,000 problem reports initially. The issues gradually declined but spiked again throughout the day. Most users reported problems with logging in, payment processing, and mobile app performance.

PayPal Confirms Disruption in Services

PayPal’s official status page confirmed service disruptions in Retail Checkout and Reporting. At 9:39 a.m. ET, the company updated that Online Checkout and Braintree services were also affected. PayPal said its technical teams were investigating and working on resolving the problem.

Venmo Appears Operational But Users Disagree

Venmo, a subsidiary of PayPal, does not have a separate status page. The main PayPal status page showed Venmo as "Operational." However, Down Detector listed over 900 reports for Venmo issues starting at 8:47 a.m. ET. Users on social media also reported failed transactions and app crashes.

Venmo and Paypal Disruptions Timing Increases Impact

The outage occurred on the first day of the month, a common time for rent payments, payroll, and bill settlements. This increased the effect on users. One user described the issue as a “complete blackout on payday.” Many landlords and tenants were affected.

Venmo and Paypal Disruptions Scope and Geographic Spread

According to Down Detector, most complaints came from major cities including New York, San Francisco, and Seattle. About 39% of issues involved the PayPal app, 37% were about payments, and 24% related to logins.

Social Media Reactions and Lack of Communication

Venmo’s last social media update was unrelated to the outage. PayPal posted a brief message confirming the issue but did not provide an estimated time of resolution. Users criticized the lack of detailed updates.

Possible Causes Behind Venmo and Paypal Outage

No official cause has been confirmed. Experts suggested possibilities like system overload, recent updates, or cyber incidents. Recent integrations, including crypto features and AI tools, may have increased system complexity.

Impact on Businesses and Users

E-commerce businesses relying on PayPal reported failed checkouts and lost sales. Small businesses using Venmo experienced cash flow disruptions. Many individuals could not access funds or complete personal payments.

User Alternatives of Venmo and Paypal During the Outage

Users sought alternative platforms due to service interruptions. These included:

• Apple Pay: for iPhone and iPad users
• Cash App: offers similar services to Venmo
• Zelle: available through many U.S. banks

These platforms remained operational and helped users complete urgent transactions.

Industry Response and Future Measures

Regulators may increase scrutiny on uptime performance for digital payment services. Analysts warned that recurring issues could drive users toward competing platforms. Calls for stricter oversight are expected following this disruption.

Looking Ahead and Recovery Efforts

PayPal has not announced a timeline for full recovery. As of now, some services are still under disruption. This outage may push PayPal and Venmo to improve backup systems and transparency. The fintech sector is watching closely for follow-up actions.

FAQs

Why are PayPal and Venmo not working today?
Both platforms reported service disruptions starting around 8:45 a.m. ET. Technical issues affected login, payments, and checkouts. Teams are working to fix the problems.

What can I use if PayPal or Venmo is down?
Users can try Apple Pay, Cash App, or Zelle as temporary alternatives. These platforms remained functional during the outage and support peer-to-peer and retail payments.