Steam Users Lose PayPal Option in Some Regions Due to Banking Partner Issues
Valve has confirmed that PayPal payments on Steam are no longer available in certain regions due to issues with one of PayPal’s banking partners. The problem, which began in early July 2025, stems from the bank’s decision to stop processing Steam-related transactions in specific currencies.
According to Valve, PayPal notified them that its acquiring bank would no longer handle Steam payments in currencies other than EUR, CAD, GBP, JPY, AUD, and USD. This sudden change forced Valve to disable PayPal as a payment method for affected regions. The company has stated that the bank’s decision was related to content on Steam, echoing previous conflicts involving payment processors like Mastercard.
Valve hopes to restore PayPal support for these currencies in the future but admits the timeline is uncertain. The issue appears to be part of a broader struggle over content moderation on Steam, where payment processors and banks have pressured the platform to enforce stricter guidelines.
Earlier this year, Steam removed several games that failed to comply with payment processor policies, particularly those involving adult content. Valve later revealed that Mastercard had indirectly forced the removals by threatening to withdraw payment processing services. Reports suggest conservative activists pressured Mastercard to take action against certain sexually explicit games.
In this latest case, PayPal’s banking partner is the one imposing restrictions, possibly due to similar external pressures. While neither Valve nor PayPal has full control over the situation, the result is a reduced payment flexibility for Steam users in affected regions.
Valve has not specified which countries are impacted, but users have reported PayPal being unavailable in multiple regions since July. Engadget has reached out to both Valve and PayPal for further details, including alternative payment options for affected customers.
This incident highlights the ongoing tension between digital storefronts, payment processors, and activist groups. As financial institutions increasingly influence content policies, platforms like Steam and Itch.io face growing challenges in balancing user access with compliance demands. For now, Steam users in certain regions will need to rely on other payment methods until the PayPal issue is resolved.
