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PayPal removed from Steam amid payment processor's strict content restrictions

PayPal's content restrictions prompted its removal as a payment option from Steam
posted by Shreya Ghosh
Friday 8/15/2025 at 10:00PM EDT
  • PayPal (Image via Getty)
    PayPal (Image via Getty)

    In a development that has left millions of Steam users scrambling, PayPal is no longer accepted for transactions in most currencies starting this month. Valve said the change stemmed from one of PayPal’s acquiring banks halting transactions for several Steam currencies.

    According to a report by Dexerto, using unsupported currencies can no longer pay directly with PayPal, losing a previously available payment method.

    Aiming to avoid conflicts with major payment processors like Visa, Mastercard, and PayPal, Steam took down dozens of adult games containing extreme or sensitive themes last month.

    The policy shift targets any content that could risk upsetting these financial partners, but the lack of specific guidelines has created confusion among many developers. 

    Everything we know about PayPal being pulled from Steam

    Detailing the formal decision to restrict payments, Valve has formally announced a significant change to its payment options on Steam. According to several reports, PayPal scaled back its support for Steam payments this August. Following the sudden decision, the financial technology company limited its transactions to just six currencies. As of now, payments are restricted to the Australian Dollar, British Pound, Canadian Dollar, Euro, Japanese Yen, and US Dollar.

    Many are now unsure which themes are acceptable, leading to a wave of sudden game removals. This uncertainty has sparked concern within the indie game community, with critics warning that the crackdown could limit creative expression. 

    On the other hand, developers are also worried imagining the financial hit from having titles pulled without clarification. It appears they have been left in a precarious position on one of the largest PC gaming platforms.

    To minimize disruption due to the new change's implementation in August 2025, Steam has advised affected customers to consider alternative payment methods or utilize Steam Wallet codes purchased from third-party vendors. As of now, there is no clear information from Valve about PayPal's return in the excluded regions, as Dexerto confirmed.

    Behind the scenes, Valve attributed the situation to broader "content concerns" raised by payment processors. It hinted at a conflict of earlier disputes with Mastercard. Interestingly, Mastercard publicly refused to be associated with a role in this specific case.

    On the other hand, Valve's allegations stated that certain payment partners have blocked the sale of lawful adult games under a brand protection policy previously. Despite any content being legal in the customer's jurisdiction, this policy gives processors the right to reject transactions for content they believe could harm their corporate image.

    Steam had to modify its rules to align with the preferences of its payment processors. According to Valve, Mastercard stated its message indirectly via intermediaries. Additionally, PayPal's recent challenge seems similar after its partner bank withdrew backing, instead of PayPal.

    The situation underscores the payment networks' prominence, power, and how they can quietly dictate what appears in online marketplaces and landscapes. Games can easily disappear if they threaten financial relationships without any legal intervention.

    As a result of the dilemma, Steam is left with fewer payment options. Now, it needs to continue its operations with tighter guidelines on explicit content and, most importantly, a community increasingly wary of its decision-making.

    The fallout from PayPal’s withdrawal is immensely impactful. According to a report by Tom's Hardware, almost five million Steam accounts in Brazil lost access to one of their main payment options. The significant effect extends far beyond. It has already hit countries such as Mexico, Norway, Switzerland, and several other territories. The list of affected locations also includes parts of the EU operating outside the Euro, such as Poland, as the złoty is used there.

    While Steam has faced payment issues before, those were usually confined to single regions and quickly resolved. This time, the disruption has extended to multiple continents and spanned currencies, marking one of the most prolonged payment breakdowns the platform has experienced in years.

    A wave of frustrated gamers is now looking for new ways to pay, as PayPal quietly vanishes from Steam in several countries. For now, Valve has expressed interest in restoring the option yet again. However, it has not offered any clear timeline, according to a Notebookcheck report. 

    With millions affected, the sudden disappearance of the significantly used payment method has left people confused about the future. The silence from both Steam and PayPal on the matter is only fueling speculations on the internet. For the gaming community, the simple purchase procedure has now turned problematic in multiple countries.

    TOPICS: PayPal, Steam