Why did PayPal step back?

On Friday, October 17, 2014, the National Bank of Serbia (NBS) neglected the information of some media that PayPal withdrew the option of "money receipt " due conflict with the legislation in Serbia.

NBS states that after publishing of the information, it immediately contacted PayPal’s representatives who clearly stated the information is not true and that potential obstacles in implementation of the money receipt service cannot be related to alleged limitations imposed by the domestic legislations.

- The National Bank of Serbia has been pointing out for a few times that the money receipt option through foreign institutions of electronic money, for the payment collection from abroad, is in line with local legislation and it is not necessary to change domestic legislation (through the Law on foreign currency operations). It was communicating the attitude in its official contacts with PayPal as well- it was announced by the central bank.

- Rough opposing to the truth and claims that the National Bank “hid “through the announcement that there is no legislation which would prevent operations of this service in the country " – NBS announced.

It added that they outlined that responsibility for potential payment in foreign currency between residents through service of electronic money institutions will not be PayPal’s but residents ‘who participate in the activity.