NFTs
PayPal ends NFT purchase protections
PayPal has announced a policy update that will remove non-fungible tokens (NFTs) from its Purchase Protection and Seller Protection Programs starting May 20, 2024.
The change, which was first noticed on the company’s website, website on March 21, will affect all NFT transactions, leaving participants without safeguards against fraud and chargebacks.
PayPal has previously explored direct sales and hosting of NFTs on its platform, even filing an NFT-related patent in 2022.
PayPal’s updated protection policies are the latest development in the company’s involvement in the digital asset market.
Despite the crisis, PayPal has not completely withdrawn from the cryptocurrency sector; in 2023, it launched PYUSD, a stablecoin pegged to the US dollar.
The payment company’s stablecoin peaked in late February with over $300 million in market cap, but has since fallen back to $200 million.