One month from today, the vast majority of PayPal users in Thailand will be shut off by the global finance giant after its apparent failure to win concessions to new tax laws.
As we reported in November, users will be left in the lurch March 7 unless they hold business accounts that are registered under the government’s Know Your Business, or KYB, program, a policy it says is intended to increase transparency and combat money laundering.
PayPal, which tried to spin the effective closure as a “relaunch” of its service that would have little impact, seemed unable to bend things its way and now concedes that non-KYB accounts will go dark next month.
Here’s why PayPal will be cut off in Thailand
“We understand that this news will disappoint many of our customers, and for this we sincerely apologize,” company spokesperson Anchalee Bantadteang said in a statement Saturday. “We are working closely with the relevant authorities in Thailand to accelerate our relaunch and minimize the disruption to our customers.”
KYB-registered businesses will be able to operate, though transaction fees will be charged 7% VAT, and domestic transactions may only be made in Thai baht. How one goes about obtaining KYB status isn’t really clear.
Apart from those businesses, holders of personal and business accounts will be unable to use them to receive or send money. They will only be able to make withdrawals.
That means gig economy types won’t be able to be paid via PayPal, and people will have to find another way to pay for their eBay buys, Shopee drugs, and Steam games.
