Why is the PayPal Student Account being discontinued?

[PayPal_Drew]

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

[kernowlass]

@PayPal_Drew

That is useful and thank you but it does not actually answer the question of why? paypal decided to remove that option.

That is a question a lot of posters were asking.

[lancelotme]

---

@kernowlass wrote:

@PayPal_Drew

That is useful and thank you but it does not actually answer the question of why? paypal decided to remove that option.

That is a question a lot of posters were asking.

---

ask yourself why a business discontinue a product?

Airline discontinues certain route,dept stores stop stocking certain goods,why?

restaurants stop serving certain dishes?

[sharpiemarker]

They are discontinuing the Student accounts but that doesn't mean they are not going to develop something else for that sector of the market later.  I think PayPal has their hands full right now with AML and KYC policies (google it) and transitioning their company and website since splitting with eBay and don't want to deal with student accounts for now as that has its own risks.

[slicklawn]

It is so sad and shows how little customer loyatly there is with paypal.

My suggestion is that when customer service is so unimportant to a company we all should not use it.  Anyone with a student account should discontinue all use of paypal and incourage you student account holders to also do the same.  Remember if paypal does not value them now then why should they benfit from them later in life. 

Please spread this to other people through socal media and encourage all users to stop.  Also contact your local merchants that you used to conduct business with and inform that you are dropping them as a customer until they drop paypal also.

I became a paypal user due to the student account convience and have been a loyal user since.  Remember in order to teach them a lesson in customer service you must hit them is the pocket book.  I can imagine if accounts dropped by 50& the bonehead who came up with this plan will be looking for another job.

To all students, if your parrents are unable to convince them then it is up to you.  Remember who abandoned you now and never use paypal again as an adult.  Just think of how your children will not be able to use this great product due to the lack of caring paypal has towards it future customers YOU.

Sorry to vent, but we keep them in business and we together as non users can put out.

Thanks

[bowlesm]

Let me speculate for a minute here:  Pay pay may have gotten sued by some privacy rights nut job. The court may have ordered PP to cease and desist Student Accounts. The argument may have been that anyone over 18 has a "right to privacy" as to who can see their financial information (even tho it is NOT even the students money).

I am being generous here... but PP may not even be able to discuss the settlement terms.  This is what our legal system has come to. NO common sense and in everyones business. The logical person would reason that the student should just get his own private account and earn his own money to fill it up, if he is so concerned about privacy.

This all being said, PP could have turned this into a business bonanza vs bust. The simple act of setting up alternatives in email as well as within PP web would have been well recieved. A simple select A,B or C to effect the replacement would have been easy.

A=open a separate PP account for the student. B=Apply for a PP debit card on parent account to provide to student. C=Close out student account only.

PP has by default chosen C, leaving us all in a lurch.... I can't help but believe that the above situation or a similar one exists as no business in their right mind would make such a terrible decision nor communicate so poorly to its customers.  Business is all about how you react to situations not just taking the simple route, but taking a bad situation and using it to advantage customers and business as well.

PP... this is a real "Enron" move on your part. It may be too late, but if you were to announce a Campaign to Service Student Customers... you may be able to salvage this out of the toilet... otherwise a majority of parents are going to pull the plug on your life support.

[Soporifix]

"Why is the PayPal Student account being discontinued?"

Note that PayPal never answers this question. It simply states that it's happening.

[DPCreations]

@Soporifix

It was a business decision; PayPal has no obligation to explain details of business decisions, just like your local bank doesn't explain why it changes account types nor why Wal-Mart changes its inventory.  If you don't like the product or service offered by a company, you just select a different provider of the service or product.

[lancelotme]

---

@Soporifix wrote:

"Why is the PayPal Student account being discontinued?"

Note that PayPal never answers this question. It simply states that it's happening.

---

some spokesman said they have something better 

[lancelotme]

These kids may  be under 18,but they know how to stream movie,shop on AMZN,sign up for Neflix,text messaging,talk back,smoke a joint,pop a pill,drive and **bleep**,they should really be out there learning how to make a living,not spending and  wasting tax payer money,Bernie Sander is a weirdo,may be they dont have kids in Maine or whatever state he comes from !  

[sbaez5799]

Why be so secretive about this?  If it was not profitable or paypal was loosing money because of irresponsible activity, then why not just say so?  I think most consumers would understand that.  But instead, paypal just cancels and then leave everyone wondering why.  Not a good way to treat you customers.  My guess is that paypal knew they would get this reaction and they just don't care.  I love the paypal service, but if this what they think of their customers, I may have to re-think my use of paypal.