PayPal Ends NFT Purchase Protections Ahead of Policy Update

PayPal has recently announced a policy update that will remove non-fungible tokens (NFTs) from its Purchase Protection and Seller Protection Programs starting May 20, 2024. This decision, which was initially disclosed on the company's website on March 21, will impact all NFT transactions, leaving participants without protection against fraud and chargebacks. Previously, PayPal had shown interest in NFTs, exploring direct sales and even filing an NFT-related patent in 2022. However, this update reflects a shift in their approach to the digital asset market. Despite this move, PayPal remains engaged in the cryptocurrency sector, evidenced by the launch of PYUSD, a stablecoin pegged to the U.S. dollar, in 2023.