Why is the PayPal Student Account being discontinued?

PayPal_Drew
Moderator
Moderator

Hi Community!

 

If you are new, thanks for coming to the community forums to understand more about what's happening with the Student Accounts. Feel free to check out any of the other articles while you're here!

 

We are aware that this may be an inconvenience for some, so we'd like to thank you for understanding the change. Below are some common questions that we have received. If you have any additional questions, please reply to this thread and the community can respond to you.

 

Why is the PayPal Student account being discontinued?


PayPal has decided to close PayPal Student Accounts and PayPal Student Debit MasterCards on the following dates:

     • Effective September 29, 2016, PayPal Student accounts will no longer be able to make purchases online.
     • Effective September 29, 2016, the PayPal Student Debit MasterCard® card, and related services, will be closed.
     • Effective November 15, 2016, the PayPal Student account will be closed.


What happens to the money in the Student account balance?


Any money that is not spent from the Student account prior to November 15, 2016, will be moved to the student’s parent’s PayPal account. The student account will no longer be able to make purchases effective September 29, 2016. You will still be able to send and withdraw money until November 15, 2016.

 

Is there a replacement product?


At this time, we aren’t introducing a replacement for PayPal Student Accounts and PayPal Student Debit MasterCards. We will continue to explore ways to serve our younger population in the future. If the student is over 18 years old, we invite them to sign up for a PayPal account so they can enjoy the benefits PayPal offers, such as sending, receiving, and spending money online and in-stores. We appreciate your business and apologize for any inconvenience.

 

Because the Community Forum isn't actively monitored by our Customer Service team, please reach out to us via phone if you require immediate assistance. You can do this by visiting the "Help & Contact" link on any PayPal webpage, selecting "Call Us", and continue as a guest if you're not logged in to your account. 

 

If this post is helpful, please accept it as a solution or provide kudos. 

 

Thanks! 

 

- Drew

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157 REPLIES 157

DPCreations
Frequent Advisor
Frequent Advisor

Customers mean a lot to businesses.  No good business would ever take a position that customers in general mean nothing to a business.

A business is in business to make a profit; when there are not enough customers for a business with a select product then the product will be discontinued.  A business will not keep products available when there are not sufficient number of customers to to support the viability of that product.

 

There are ways to change that policy.   Get yourself hired by the company as a product marketing manager or financial adviser if you beliieve you would make better business decsions for the company.  Perhaps buy enough stock in the company to influence management decisions.  As a consumer, if you are unhappy with a company, just walk away from the company and find a new service; let your money do the talking (or walking).

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lancelotme
Frequent Contributor
Frequent Contributor

@stihlfixing wrote:

Agreed but according to our Volunteer Advisor DPCreations, "By the time PayPal management decided to discontinue the student acocunts, the time for questions had passed." So, all these discussions here are moot points. 

They did not even discuss with us or ask for comment before they decided, did they right? I wonder those "management people" have kids that use student account.


If this service has been in place for 5 years and discontinued,it is probably not profitable for Paypal, but it is not the end of the world.

 

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mtneiswender
Contributor
Contributor

I'm assuming like others that this was a revenue decision. Still, would have been nice to see an option to continue in some way. Its a great service and honestly gave me way more free benefits/convenience than it had to. What would have happened if they made it a premium service with a fee? I'd definitely have paid an annual fee for it. 

 

Oh well, i will miss the convenience. I am also unhappy with the very poor rollout of this decision. They could have at least said why and put something on the website with an FAQ. Like others I initially thought the email was fake, it was so arbitrary and uninformative and didn't link to an official statement on the website. The email could just as easily have closed with "we don't really care about this sudden inconvenience, sincerely paypal,"

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Wiersy67
Member
Member

Capital One 360 offers a Money account for minors.  Comes with a Debit card for teens at no cost.  Great features.  Check it out.  

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Emtr42
Contributor
Contributor
This is very short-sighted of PayPal to alienate a huge number of future consumers. We also would've paid a fee for this service. And thank you to those who posted alternatives. I also think PayPal needs to answer their phones! Perhaps if we all make a bunch of bogus student accounts right now, in protest, it will get their attention?
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stihlfixing
Contributor
Contributor

Google news - search "paypal" and look up those who have written articles about paypal and find their emails to let them know about this.

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DPCreations
Frequent Advisor
Frequent Advisor

I just read a new article about PayPal working with MasterCard for in-store purchase.  It's interesting, but what followed from a business perspecti is that PayPal "has focused on aggressive growth".  My guess is that student accounts don't fit with this aggresive growth strategy.

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lancelotme
Frequent Contributor
Frequent Contributor

I heard that too,before MC,they have also made deals with VISA.

but what is the difference whether you pay VISA or MC via Paypal or MC /VISA via a bank?

Paypal has to do something ,once its contract with Ebay expires,it will lose a lot of businesses/

I have never used student account,does PAYPAL charge a fee when Parents sent money to their children?  

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Mekjek
Contributor
Contributor
I have been researching alternatives. Go to. www..thesimpledollar.com/best-prepaid-debit-cards/ I'm thinking American Express Bluebird is the best alternative I can find.
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jdcachism
New Community Member

they say its due to fraud, i have never had a fraud issue, if your kid cant keep up with a card dont give them one...i am confused about why everyone else has to be punished i have 4 student accounts...PLEASE reconsider....and no my students are teens and not going to open their own 

paypal that suggestion is null.

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