PayPal Suspends Service on Gumroad, Creators Urged to Switch to Direct Bank Transfers

In a surprising and impactful development, Gumroad has announced that PayPal has suspended its payment service on the platform. This abrupt decision has led to an immediate halt in payouts to creators who rely on PayPal, affecting a significant portion of the platform’s global user base.

Effective immediately, creators can no longer receive their earnings through PayPal. As a response, Gumroad is urging all users to quickly transition to direct bank transfers to avoid interruptions in receiving their payments. Gumroad has made substantial investments in expanding its direct bank transfer options to cover nearly every country, providing an alternative solution to mitigate the disruption caused by PayPal’s suspension.

Steps to Update Payout Method:

1. Log into your Gumroad account.
2. Navigate to Settings > Payments.
3. Select Bank Account as your payout method.
4. Enter your bank account details and submit the information.

For creators in countries where Gumroad does not yet support direct bank transfers, such as Brazil, Gumroad has provided a workaround. Users in these regions are advised to change their account’s country settings to a location where they can meet identity verification requirements and have access to a bank account. This will enable them to continue receiving payouts through the bank transfer system.

Gumroad has expressed regret for any inconvenience this may cause but assures users that they are working diligently to ensure smooth payouts for everyone. The platform’s support team is available to assist creators who encounter challenges during the transition.

This major shift highlights the growing tension between online payment providers and digital platforms, as well as Gumroad’s commitment to maintaining uninterrupted service for its global creator community. The company’s focus on expanding direct bank transfer options is seen as a proactive step to reduce dependency on third-party payment services and to create a more secure, stable payment system for its users.

For creators affected by the PayPal suspension, this transition to direct bank transfers is crucial to ensure continued access to their earnings.