Recently the news was spread on the Internet that PayPal has stopped cooperating with UnoTelly, a SmartDNS provider on the Internet. This is a part of their policy not to cooperate with services breaking copyright rules or unblocking Internet services in other nations.
PayPal is thus following in the footsteps of Netflix who is blocking more and more VPN and SmartDNS providers. At the UnoTelly website they wrote the following:
“On February 3rd, 2016, Paypal has severed payment processing agreement unilaterally and without prior warning. Paypal indicated that UnoTelly is not allowed to provide services that enable open and unrestricted Internet access. As result, UnoTelly can no longer accept payment from Paypal. This development is outside of our control, and we sincerely apologize for the inconvenience.”
The question whether or not this is something that only UnoTelly will suffer from or other VPN and SmartDNS providers as well is yet unknown. Based on some assumptions it seems to be so that PayPal wants to terminate their cooperation with providers openly proclaiming that their services are meant to be used for the purpose of unblocking, like for example UnoTelly. If the services however do not use unblocking as a keyword to what their services is meant to be used for, then they might pass the PayPal test.
Time will show how this will influence payments for VPN and SmartDNS provides in the future, but at the moment UnoTelly encourages their users to use other payment methods instead of PayPal, since PayPal can no longer be used.
Do you know of other VPN or SmartDNS providers that have been thrown out from PayPal? What do you think of this? Is this a fair treatment of these companies by PayPal?