PayPal users in Japan as of March 31 no longer may send noncommercial transactions to individuals until the further notice, PayPal announced in a statement.
The reason for the suspension is that PayPal has yet to comply with a new fund-settlement regulation issued by the Financial Services Agency of Japan, Kosuke Seto, head of marketing of PayPal's operations in Tokyo, tells PaymentsSource.
The agency, which supervises the financial systems in Japan, adopted the new settlement regulations on March 1, targeting the funds-transfer industry, including banks and trust companies. The new regulations will take effect on April 1.
The temporary halt applies to all account types, Seto says. Whether it is a personal, premier or business account, users in Japan cannot send funds to individuals regardless of location for noncommercial purposes, such as allowance, he says.
Users still may shop online as they normally do, either inside and outside of Japan, Seto says.
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