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 an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
