CHARLOTTE -- Officials with digital payment company PayPal announced on Tuesday that they will not move forward with the planned expansion into Charlotte due to House Bill 2.

PayPal had announced two weeks ago plans to open a new global operations center in Charlotte. The new center would provide 400 new jobs.

The company said in a statement Tuesday “The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture.  As a result, PayPal will not move forward with our planned expansion into Charlotte.”

You can read the full statement below.

The deal died over a law Governor Pat McCrory says protects women and children.

“And if people disagree with that, that's part of our democratic process, and I'm going to respect that,” he said when asked about PayPal’s decision at an unrelated event Tuesday.

House Bill 2 overturns Charlotte's non-discrimination ordinance, which allowed transgender people their choice of restroom.

HB 2 proponents argue that would allow sexual predators a defense for using the wrong restroom.

HB 2 also bans cities from making future non-discrimination measures and leaves out LGBT status as grounds for discrimination complaints.

PayPal’s decision quickly turned into proof for a growing list of politicians and business leaders who say HB2 could lead to an exodus.

“It is truly a challenge,” said Charlotte Mayor Jennifer Roberts (D), “We are worried that we'll have more announcements. I am hoping that our legislature is going to find a remedy to prevent that from happening.”

But Republican General Assembly leaders blame Roberts.

They said in their own statement the city's ordinance unleashed a "far-left political correctness mob" and accused Roberts and Attorney General Roy Cooper, who is also opposing the governor in November’s election, of spreading misinformation.

Around the same time assembly leaders released that statement, Red Ventures CEO Ric Elias tweeted he's "seriously reconsider[ing]" bringing 500 new jobs to North Carolina.

PayPal is the largest company to cancel business in North Carolina because of HB 2, but tourism officials claim they're losing convention business.

Lionsgate Entertainment also reportedly canceled filming a show in Charlotte because of the law.

Dan Schulman, PayPal’s president and CEO, released the following statement:

“Two weeks ago, PayPal announced plans to open a new global operations center in Charlotte and employ over 400 people in skilled jobs.  In the short time since then, legislation has been abruptly enacted by the State of North Carolina that invalidates protections of the rights of lesbian, gay, bisexual, and transgender citizens and denies these members of our community equal rights under the law.

"The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture.  As a result, PayPal will not move forward with our planned expansion into Charlotte.

"This decision reflects PayPal’s deepest values and our strong belief that every person has the right to be treated equally, and with dignity and respect. These principles of fairness, inclusion and equality are at the heart of everything we seek to achieve and stand for as a company. And they compel us to take action to oppose discrimination. 

"Our decision is a clear and unambiguous one. But we do regret that we will not have the opportunity to be a part of the Charlotte community and to count as colleagues the skilled and talented people of the region. As a company that is committed to the principle that everyone deserves to live without fear of discrimination simply for being who they are, becoming an employer in North Carolina, where members of our teams will not have equal rights under the law, is simply untenable.  

"While we will seek an alternative location for our operations center, we remain committed to working with the LGBT community in North Carolina to overturn this discriminatory legislation, alongside all those who are committed to equality.

"We will stand firm in our commitment to equality and inclusion and our conviction that we can make a difference by living and acting on our values.  It’s the right thing to do for our employees, our customers, and our communities." 

The N.C. Values Coalition released the following statement in response to PayPal's decision:

"PayPal had received millions of dollars in corporate incentives just to come to North Carolina, and a company with its hands in the pockets of the taxpayers of North Carolina shouldn’t insert itself into the bathroom policies of the State by siding with the convicted sex offender who pushed the Charlotte bathroom ordinance through the City Council. PayPal has announced its expansion into Cuba, presumably because doing business with a country with horrid human rights infringements makes more sense to them than doing business in a state that believes it to be common sense to protect women and children by keeping men out of women’s bathrooms, showers, and locker rooms. Consumers should be wary of such a company."