PayPal to Remove NFT Purchases from Purchase Protection Program
PayPal to Remove NFT Purchases from Purchase Protection Program
In a surprising move, payments giant PayPal has announced that it will be removing non-fungible token (NFT) purchases from its purchase protection program starting May 20. This decision comes as PayPal continues to make adjustments to its services in response to the evolving digital landscape.
The amendments to PayPal’s protection program will specifically exclude NFTs and any payments initiated via a third-party platform using the PayPal Balance. This means that NFT transactions will no longer be covered under PayPal’s purchase protection program, unless the buyer claims it was an Unauthorized Transaction and meets all other eligibility requirements.
Over the years, PayPal has been exploring ways to integrate NFTs into its platform, allowing users to buy, sell, and hold NFTs directly through their PayPal accounts. This move was seen as a way for PayPal to capitalize on the growing interest in NFTs and cater to this emerging market.
However, recent data shows that NFT sales volume has been on the decline, with a 24% decrease in sales over the last 24 hours. Despite this, the number of buyers and transactions has increased, indicating a shift in the NFT market.
In a related development, GameStop recently announced the shutdown of its NFT marketplace, citing regulatory uncertainty in the crypto space as the primary reason for its decision. This move reflects a broader trend of companies reevaluating their involvement in the NFT market.
The decline in NFT trading activity has raised questions about the future of digital collectibles. Will NFTs make a comeback, or is this the beginning of the end for the once-popular trend?
In a separate announcement, PayPal revealed the launch of its native dollar-pegged Stablecoin “PYUSD” in 2023. This Stablecoin is backed by cash and short-term treasuries, and the company recently introduced a new feature powered by its money transfer platform Xoom, making the service available to U.S. users.
As the NFT market continues to evolve, it remains to be seen how PayPal’s decision to remove NFT purchases from its protection program will impact the broader digital collectibles industry. Stay tuned for more updates on this developing story.
