Bermudian payment gateway options for overseas purchasing appears to be shrinking, as HSBC Bermuda customers are complaining that the bank is withdrawing their support of the use of PayPal, the online payment system.

The problems come after the bank’s customers last month expressed frustration at non-functioning debit cards and problematic ATM machines.

Today, some irate customers say bank employees have told them the “unofficial” reason is that HSBC Bermuda does not support accounts connected to cryptocurrency.

The Royal Gazette has reached out to HSBC Bermuda for comment.

PayPal’s Crypto Hub accepts and supports cryptocurrency, allowing some customers to trade and manage several digital assets directly in their accounts.

But Bermuda is only a supported region for standard PayPal services. Further, as of this year, PayPal has limited its direct buy, sell, and hold crypto services to specific markets, primarily the United States, United Kingdom and some European countries.

But in this matter, one customer said the HSBC decision was taken two weeks ago: “When were they going to tell their clients?” she asked.

Another said he was very disappointed with HSBC: “One, it was never communicated this was going to occur, nor did any of your phone operators know what to say when called. And two, if you say it's because of crypto why not just decline those type of charges, only?”

Not every commenter on Facebook was aware of the change: “I did over seven PayPals today. HSBC card no issues. (Only) way I pay something online overseas when off island.”

Said another: “Us lot all gotta realise that HSBC Bermuda really don't want to be in the retail business at all any more, so they’re trying to annoy us into closing up accounts. The only reason they are still in it is due to licensing requirements.”

Some are now viewing banking alternatives, and one called on HSBC “to make it make sense”.

She said: “Our only method of payment to certain merchants or individuals overseas is through PayPal since we aren’t allowed Zelle, Venmo or Apple Pay in Bermuda … so now that is being taken away from us?”

Many have questioned the bank’s lack of advanced communications.

One said: “They’ve also added ‘crypto wallets’ to be flagged on their security system for ‘fraud safety’, also recently. Kraken no longer is accepted with my HSBC card.”

Another complained: “I’ve just had an automatic subscription declined on PayPal using my HSBC card. The decision not to allow HSBC credit card transactions on PayPal should have been communicated to all customers. What’s the reasoning behind the decision?”

Others complained that HSBC was no longer working with Wise and Revolut, other companies providing international transfers.

HSBC had not yet responded to the concerns at the time of this publication.