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

[lancelotme]

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@DPCreations wrote:

@lancelotme

I enjoyed reading your history of PayPal and eBay.

I starrted on eBay right after eBay purchased PayPal.

I didn't realize that PayPal and eBay had the payment system arrangement when they split, but it makes sense as spinoffs frequently do incude arrangements to benefit both new companies.

The benefit of the spinoff/split is to go to the shareholders.

PayPal, like any public company, will constantly chage to offer more value to the shareholders.  If they fail, stock prices drop.

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Unfortunately,Paypal stock is going nowhere.

After reading this forum,I can understand why?

[DPCreations]

@lancelotme

Reading information from stock broker analysts and company 10-K reports and other public documents would be a much better place to look for reasons rather than unhappy users on this forum.  Company financial reports will also provide some future risk assessment.

There is a lot of payment service competition and each company is attempting to offer benefits better than the other.  It's a difficult field of companies.  The bulk processors, or agglomerators, like PayPal are also competing with the primary companiies such as FirstData.  I have a full merchant account with FirstData, but I also use PayPal Here. And then there is Square, which started as a credit card bulk processor.  PayPal started more as a payment service and morphed into a credit card in-person program; I think that has been a difficlt process to get up to speed.

For serious users, we need to be aware of issues and changes and even have backup plans in place for potential changes.

Businesses change so much.

[spirit11]

I'm a bit frustrated with this as all of you are. My situation: Divorced with kids living out of state, and their mother isn't the most trustworthy in getting money I send the kids to the kids. My solution: Student accounts only I can access and control. So now I have to find an alternative. And I think I might have stumbled on something, at least something worth checking out further.

Here's the article. The app itself looks promising. Maybe it can help out the rest of you as well.

http://appadvice.com/post/new-app-reinvents-allowance-teaches-kids-to-save/705862

[DPCreations]

@spirit11

It's nice that your are offering suggestions to help others with the transition from PayPal student account to something else.

[lancelotme]

Nickel!

Sounds interesting,but I prefer cold hard cash,no one can trace when and how and with whom I spent it.

Thats the best part ! 

(BTW,I am so glad you folks are not my parents !)

[Emtr42]

I've only used PayPal student accounts to give my children more independence and freedom and opportunities and knowledge. Teenagers forget things, it's only natural, so I feel like it helps support the learning process respectfully - so when a kid finds himself across town at dinner time with no cash, I can pop some money on his debit card so he can get a slice of pizza with friends. I don't use the accounts to check up on my kids - they each get a weekly amount transferred and they choose how to budget the money, and have easy acces to it.

[lancelotme]

It is good to have a Dad like you.

Western Union,mailing a check would not work in this situation.  

[stihlfixing]

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.

[DPCreations]

The time for management discussions was before the decision was made.  That time has, indeed, passed.  Users are on their own to look for solutions.  User discussion about past decsions won't change the business decision made by payPal.

PayPal has an obligation to it's shareholders and makes decisions based on increasing value for shareholders.  Businesses discontinue products when those products no longer provide sufficient profit to the business model.  On can suppose that the student account wasn't generating the revenue requiired for the PayPal business model.  New products will likely be added to generate new revenue.

Retail stores do the same by discontinuing products which don't fit their own business models.  

[rabidnerd]

Or to paraphrase, "Customers mean nothing unless they buy enough stock"