Online payment service PayPal has been the subject of criticism from shoppers and LGBT charity Stonewall.
As it stands, users are unable to update their names to coincide with changes to their gender identity, due to rules that require formal legal documents - something they don't always have.
Stonewalls head of trans inclusion has backed vocal shoppers and is urging PayPal to help its transgender users and change what they say is a hurtful and potentially dangerous policy.
They want to see users have the option to amend pronouns and names when making payments, something other companies have started to do.
This means that the birth name or 'dead name' of a trans person will be updated and will no longer show up when making payments.
The Mirror reported that this can lead to the harassment or injury of transgender people.
Kirrin Medcalf, from Stonewall, said: "Online payment services can do lots of things to ensure all trans and non-binary people are able to use them, such as making sure that customers can change their names and pronouns should they want to.
"It’s vital that all businesses take the necessary steps to provide accessible services to all LGBTQ+ people who want to use them, and we urge them to update their procedures where appropriate."
A non-trans user of Paypal said that the tough rules affect more than just the trans community and said: "This has been a known thing for ages, but name changes don't just affect trans people.
"People change their names all the time for all kinds of reasons, and legally all that is required is a deed poll /marriage cert / etc.
"PayPal need to sort it out and align their policy with all other companies."
Other financial companies are making it easier for trans people to change their names.
For example, this Pride month Mastercard launched a feature called True Name, which lets trans people easily display their chosen name on their cards.
The card company said it was doing this to make its payments "truly safe for all".
Artist and trans rights campaigner Fox Fisher says they struggled with changing their name on PayPal.
It took ten years for Fisher to change their name on the payment platform, whereas it took just months to do so on their driving licence, passport, bank cards and utility bills.
Fisher said: "It's a known joke within the trans community that if someone ever PayPals us money, we never mention it, out of respect, if we see their deadname linked to the payment. Or sometimes the trans person will apologise for it."
Fisher says they are stronger now than when they started transitioning, but that someone using their old name would have been wounding when they started.
"People using the wrong pronouns or my old name wouldn't have the same effect on me now compared to how awkward and fragile I was when I first started my transition," they said.
To register to alter your name on PayPal you'll need a photo ID and another document that legally proves your name has changed.
A PayPal spokesperson told The Mirror: "PayPal is committed to fostering diversity, inclusion, equity, and belonging, both within our company and in the communities we serve.
"We know how important it is for the name on accounts to reflect our customers’ true identities, and we offer several ways to change the name associated with an account, which may require uploading documentation.
"We are continuously evaluating our processes as we strive to provide a seamless customer experience while striking the right balance with our regulatory obligations."
Get the latest money-saving and benefits news sent straight to your inbox. Sign up for our weekly Money newsletter here.
