Paypal, a digital payment network has recently announced its stand on not supporting transactions involving NFTs. On May 20, PayPal will officially terminate its backing and will not provide security assistance on the part of traders while continuing the NFTs transaction. To date, PayPal has successfully honoured the trader’s security as a priority and has kept them out of online transaction frauds. Accidentally,  if the trader was accused of fraud, PayPal according to its policy had provided refund assistance, knowing that traders have a chance to recourse if something goes wrong. Overall, PayPal witnessed the trust and confidence from traders’ end, to perform the low risk transactions.

But as of now, the increasing volatility in the NFT market and the unpredicted fluctuation scenarios caught Paypal to stick to its strategic decision of limiting its liability and ensuring its current resources are administered effectively across its services.  

Paypal Announcement Highlight

According to announcement, Paypal has set a limit of $10,000, knowing that it will trimsecurity support on the NFT transactions surpassing the limit of  $10,000. This means the traders issuing high value transaction exceeding the set limit by Paypal will not enjoy the protection help against the overraising frauds from the digital payment platform. 

Yet, the traders continuing the NFT transaction at $10,000 or less are considered eligible to earn seller protection from Paypal. But again for this, the traders need to fit themself in criteria issued by the paypal, saying that if a buyer claims a transaction as unauthorized, then paypals seller protection come into play allowing the seller to safeguard from financial losses from buyers claim.

According to CryptoSlate new, Paypal’s representative declares, the firm is reducing the NFT purchase protection and downsize the NFT seller protection in effect to  “uncertainty around proof of order fulfillment”

Also read: Yeongcheon City Joins South Korea’s Crypto Tax Crackdown List