PayPal has stopped processing payments for Kim Dotcom's controversial cloud-based service Mega.

Launched in 2013 following the closure of Dotcom's file-sharing site Megaupload, which was seized by US authorities for breaches of copyright, New Zealand-registered Mega claims to have more than 15 million users.

Dotcom says Mega, which uses encryption technology, is a legal business, but others see it as complicit in piracy. He has claimed PayPal's decision came after pressure from Visa and Mastercard, in collusion with the ...