PayPal Blocks Steam Payments in Multiple Countries — Here’s What’s Going On

Steam and PayPal

Valve has confirmed that PayPal is no longer available as a payment option for Steam purchases in several countries, affecting transactions in all currencies except EUR, CAD, GBP, JPY, AUD, and USD.

This change, which began in early July 2025, isn’t a technical glitch — it stems from a decision by PayPal’s acquiring bank to stop processing transactions related to Steam in specific currencies.

For those unfamiliar, an acquiring bank is the financial institution that processes payments on behalf of a company. In this case, PayPal’s partner bank decided to pull out, leaving many Steam users without the option to pay via PayPal unless they use one of the six supported currencies.

Valve has said it hopes to restore PayPal for the affected regions in the future, but admits the timeline is "uncertain." In the meantime, the company is exploring "additional payment methods" and recommends options like Steam Wallet codes for now.

The tricky part here is figuring out why this is only happening in certain countries. According to community posts on Reddit, some users who contacted PayPal’s customer service were told it was Steam’s decision — but Valve’s own statement points squarely at PayPal’s banking partner.

This isn’t the first time payment processors have pulled a move like this. Similar disputes popped up with Mastercard, Visa, and even Stripe, often tied to pressure over games with adult or controversial content.

Industry watchers note a recurring pattern: payment providers often start enforcing such restrictions in smaller markets with weaker consumer protections before attempting broader implementation. This allows them to test their leverage without jeopardizing high-value regions like the US or EU. In previous cases, companies like Mastercard denied involvement in the recent ban wave, but Valve’s disclosures suggested otherwise, indicating that behind-the-scenes financial policies were driving the restrictions.

The bigger issue here is the possibility of a coordinated effort by banks and payment companies to control what content is commercially accessible online. Similar actions have previously resulted in policy changes on gaming platforms like Steam and itch.io, leading to bans on adult content creators.

For now, Valve is in problem-solving mode. And while the idea of "Valve Pay" has been more of a meme in the past, it doesn’t seem so far-fetched anymore — especially since Valve has a history of creating alternatives when outside companies threaten its ecosystem. Until then, gamers in the affected regions will have to rely on other payment methods or hope PayPal’s restrictions are lifted sooner rather than later.