Performance problems at PayPal are causing problems for many e-commerce sites today. Paypal is acknowledging the problems, which are impeding user logins and transaction processing by merchants. "We are aware of this issue and are actively working to resolve this as quickly as possible," said a statement from eBay, which owns PayPal. UPDATE: As of about 3 pm, eBay says PayPal has "started recovering. Some intermittent issues remain which we are currently addressing."
Paypal serves as the primary payment gateway for many smaller merchants and is offered as a payment option by many larger e-commerce sites and retailers. See TechCrunch and Auction Bytes for additional coverage.