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 noted on the company’s website on March 21, will affect all NFT transactions, leaving participants without safeguards against fraud and chargebacks.
Previously, PayPal had explored direct sales and the holding of NFTs on its platform, even filing an NFT-related patent in 2022.
The update to PayPal’s protection policies comes as the latest development in the company’s engagement with the digital asset market.
Despite the downturn, PayPal has not completely withdrawn from the cryptocurrency sector; in 2023, it launched PYUSD, a stablecoin pegged to the U.S. dollar.
The payment firm’s stablecoin peaked in late February with over US$300 million in market capitalization but has since dropped to US$200 million.