Popular internet payment processor, Paypal, has announced that Paypal Europe (Ltd) will cease functioning, as Paypal moves its operations to another Paypal entity, based in Luxembourg.
From 2 July 2007, PayPal Europe SÃ rl & Cie, SCA (PayPal Luxembourg) will become the service provider for PayPal in the EU.
Paypal Luxembourg will be regulated by the Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg equivalent of the Financial Services Authority (FSA).
While existing Paypal users in Europe should see no change or interruption in the service, there will be a newly revised User Agreement published for July 2nd.
While the details of the revision have not yet been released, Paypal does state that it will provide more details about the third parties to whom PayPal Luxembourg will disclose your personal and account information.
While any such move is likely to cause jitters for some merchants and internet buyers, it remains to be seen whether any significant change in the terms will actually occur, and whether any actual change in the user experience will follow.
However, with other payment processors in the UK – such as Worldpay and Google Checkout – offering little stiff competition, it is unlikely weâ€™ll see any radical changes affecting the Paypal merchant experience.