EBay Inc.'s PayPal, the online payment system suffered an outage for many hours on Monday that disrupted users' ability to send and receive money.

Company's spokesman Anuj Nayar said the reason for the outage was some hardware failure at PayPal.

He further informed that the outage started at about 10:30 a. m. Pacific Time and the service was virtually cent percent functional again at 3:30 p. m.

PayPal, which is facing rivalry from Amazon. com, claimed that approximately $2,000 in payments a second flow through its system.

However, analysts said that Monday's occurrence would not affect EBay greatly.

Speaking on the topic, analyst Aaron Kessler said, "I wouldn't expect it to be a large monetary loss for them. Overall, PayPal is a relatively small part of eBay's profitability."

In the after hour trading, EBay shares plunged 2 cents to settle at $22.02.