Swedish VPN service Mullvad announced that it will no longer accept new recurring payments using PayPal or credit card payments. Nothing will change for existing customers for at least 6 months. The company continues to accept one-time payments using various payment options including PayPal, cash, and credit cards.
Mullvad VPN, which provides the backbone for Mozilla’s Firefox VPN service, says it has decided to remove the ability to create new recurring payments in order to store less data on the company’s servers.
The company is required to store payment information for a limited period of time, as the ability to refund and restore access to the account is tied to the payment record. Lump sum payments do not need to be kept indefinitely, but this is not the case with recurring payments. Records of these payments are required to be kept for the entire subscription period, and are a privacy issue.
While convenient, recurring payments tie the user’s identity to the VPN account. Removing recurring paid subscriptions on Mullvad VPN removes the link, as payment records are not kept for longer than “the first few weeks” according to Mullvad.
The company is aware that removing the option makes using the service less convenient for some users. Non-recurring payments, also known as lump sum payments, are not affected by the decision. Existing subscriptions “will be processed for at least 6 months,” according to Mullvad. The company has not announced any specific date or period after which subscriptions will no longer be processed.
Unlike most VPN services, Mullvad VPN has a flat pricing model. Most VPN services offer discounts to customers the longer they stay subscribed. Mullvad is available For €5 per month, regardless of subscription duration. While this is higher than the price of many other VPN products, Mullvad is highly regarded in communities that value privacy.
concluding words
The decision to stop recurring payments for new and (eventually) existing customers will certainly impact revenues. This is a bold decision, reducing the amount of data stored by Mullvad on its servers.
Mullvad customers already had the option to pay for the service upfront. Nothing changes for those users. Users who have subscribed to Mullvad will need to make a one-time payment to continue using the service. Although they can use it without changing anything for at least 6 months, Mullvad will eventually give up the option.
Now you: What is your take on this? Do you use Mullvad, or another VPN service (or not at all)?
