PayPal has announced a policy amendment that will drastically alter the landscape for buyers and sellers of Non-Fungible Tokens (NFTs) on its platform. Starting May 20, 2024, PayPal will discontinue buyer protection for NFT purchases. Paypal will change its seller protection program, removing safeguards for transactions involving NFTs that are either over or below $10,000.
This adjustment differs from PayPal’s previous policy, which covered NFT transactions under both buyer and seller protection schemes. The corporation highlighted the complexity of proving order fulfillment and the fast changing digital asset environment as grounds for the policy modification.
A PayPal spokeswoman clarified on the update, saying, “Given the inherent uncertainties surrounding NFT transactions, such as verification of order fulfillment, we are updating our protection procedures. These modifications will help us handle the NFT market’s particular hurdles.”
This policy change is consistent with PayPal’s cautious yet proactive position on digital assets. Despite retracting these restrictions, PayPal continues to explore the blockchain industry, having added cryptocurrencycurrency support to its main platform and filing patents for NFT transactions and incentive systems in 2022.
Previously, PayPal’s protections provided a safety net against falsely marketed items and fraudulent payment disputes, considerably increasing buyer and seller confidence. The removal of these safeguards may cause users to be more cautious while doing high-value NFT transactions on the site.
The impending changes demonstrate PayPal’s strategy realignment as it adjusts to the complexities and hazards of the digital asset market.
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