PayPal Reduces Buyer and Seller Protections for NFT Transactions
PayPal is making changes to its policies regarding non-fungible token (NFT) transactions, reducing protections for buyers and sellers.
Effective May 20, NFT purchases will no longer be covered by PayPal’s buyer protection policy, and sales over $10,000 won’t be backed by the company’s guarantee against scams.
These updates were quietly announced on PayPal’s website on March 21 but have received little attention until now.
The revised Purchase Protection Program excludes NFTs from eligibility, according to PayPal’s policy updates page.
Previously, PayPal provided protection for both buyers and sellers involved in NFT transactions, but support for sellers was later limited.
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The platform refunded buyers for misrepresented items and reimbursed sellers for payment disputes and fraudulent refund requests.
Despite these changes, PayPal has shown increasing interest in blockchain-based digital assets. In 2022, it introduced support for cryptocurrencies and filed a patent for an NFT purchase and transfer system that offers users royalties.
These moves suggest PayPal’s evolving focus on digital art and assets in the blockchain space.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
