Issues with Paypal and Other Centralized Wallets.

PayPal has long been one of the industry's leaders in online money transfer and receipt. I recall when it launched the PayPal wish list when I was in college.

Whereas, if you recruit a friend to create a wish list, you will automatically earn $1.00 for each successful entry, with a maximum of 100 friends per account. KYC, or Know Your Customer, is not an issue because they will accept whatever information the client provides in their Facebook account.

Fast forward to 2022, there are numerous online wallets available, and PayPal remains one of the largest companies in the world. KYC has been strictly implemented on the said site in order to avoid issues such as money laundering and other potential crimes. Not only PayPal, but I believe the vast majority of centralized wallets.

Earlier, my younger brother sent me a message asking if I could access my own PayPal since his main account was restricted, and I told him that I could and that everything looked fine. He was asked to provide additional information, such as identification cards, for the company's review. By the way, my younger brother has had his account for more than ten years and uses it when he receives his commission at work.

Here's the issue: obtaining an ID in the Philippines is stressful. You'll need one to get one, and it'll take weeks to get one, not to mention the long lines you'll have to wait in to secure a possible slot.

His Paypal account was restricted this time, he attempted to send money to my personal account in order to withdraw his hard-earned cash for his expenses. The sad part is that he can't do anything right now.

While his account is restricted, he is unable to transfer or even send money to anyone. HE CAN, HOWEVER, STILL RECEIVE MONEY.

It was a little frustrating for him because he is not allowed to withdraw money, but he can still receive one. What's the point of getting paid if he can't withdraw the funds?

This also works with other wallets; for example, my Coins.ph account was restricted due to address issues. Because I am an NPA / no permanent address individual, their system triggered and I am now required to provide additional supporting documentation relating to my identity, which I do not wish to comply with. It's annoying, but I had to let it go.

In the meantime, I just asked my younger brother to use my account to update his invoice and change the email to mine since I am not using it. I also told him that once he had the money, he should withdraw it immediately and not leave it there because we never know what would happen if my own account was restricted as well.

Finally, at the end of the day... I still don't trust centralized wallets because they can freeze your accounts at any time and you'll lose your money. Alternatively, if they will release your money after the restriction, you must wait a minimum of 6 months.

The irony is that my job is related to banks, and when Paypal launched a new site in Muntinlupa a few years ago, I was one of the excited people eager to apply because the pay and benefits are far superior to the competition in the area. I just didn't go through with the process because the only opening at the time was for a phone representative, which I'm trying to avoid because I'm sick of taking phone calls.