PayPal, the payments giant, recently experienced a major outage that left thousands of users unable to access their accounts or complete transactions. According to Reuters, the technical issue affected multiple products in the app, including crypto, Venmo-related payments, and withdrawals. The glitch lasted for more than an hour, leaving users stranded without being able to process their payments. Although the reason for the problem still remains unknown, it is apparent that the failure had affected most of the customers, more so in the UK region.

The frustration went extreme as users indicated the inconvenience of not having an opportunity to complete essential transactions, especially during peak hours for online shopping and digital services. The issue compelled many users to send in inquiries seeking compensation or at least an official explanation from PayPal regarding the unexpected downtime.

For most users, PayPal has become an essential means to receive as well as give funds either in private or business matters. The outage hit e-commerce sites, freelancers, and small businesses, among others who use the platform for transactions. While some users adopted other means of making payment, others were left pending, unable to make sales or pay for anything until the service was resumed.

This recent outage highlights the importance of having a backup plan in place for unexpected events. One solution that could have helped in this situation is parametric insurance. Parametric insurance is a type of insurance that pays out when a specific event occurs, such as a power outage or a natural disaster. It is based on a pre-agreed trigger, such as a certain amount of rainfall or a drop in temperature, and pays out automatically when that trigger is met.

With parametric insurance, businesses can protect themselves against unexpected events that could disrupt their operations, such as a payment platform outage. By setting up a parametric insurance policy, businesses can receive a payout automatically when a specific trigger is met, without having to go through the claims process. This can help businesses to recover quickly from unexpected events and minimize the impact on their operations.

At Riskwolf, we enable insurers to build and operate parametric insurance at scale. Using unique real-time data and dynamic risk modelling, we can turn real-time data into insurance. With our platform, insurers can create customized parametric insurance policies that are tailored to the specific needs of their clients. Our platform is simple, reliable, and fast, making it easy for insurers to offer parametric insurance to their clients.

In conclusion, the recent PayPal outage highlights the importance of having a backup plan in place for unexpected events. Parametric insurance is one solution that can help businesses to protect themselves against unexpected events and minimize the impact on their operations. With Riskwolf, insurers can offer customized parametric insurance policies that are tailored to the specific needs of their clients. To learn more about how Riskwolf can help your business, get in touch with us today.

Source: Tech Times