Yes, through PayPal. But I'd think it's Spotify, when they set up as a PayPal merchant, they must be using a global merchant based in somewhere outside of Australia.
My PayPal statement says "Spotify Finance Limited". I'm also subscribed to Netflix and pay via PayPal, never had that issue, and the statement says "Netflix Australia Pty Ltd", so clearly indicating they're an Australia based merchant.
If you're still experiencing the original issue, make sure to check your card is enabled for foreign, secure online, and recurring purchases. You can contact your bank or credit company to check.
If you're experiencing a more general payment issue, make sure to check out this support article or the Subscription section in Spotify Answers, both of which contain some useful steps to help resolve the issue you're facing.
If you've tried all the above and you're still having trouble, make sure to create a new thread in the Subscriptions help board - someone from the Community will jump in as soon as possible to help you troubleshoot this.
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