PayPal Won’t Protect Your Crowdfunding Investments Any More
Gareth Andrews / 5 years ago
When it comes to crowdfunding there isn’t anything you can’t get support for, from a board game based on the popular video game series Dark Souls to video games based on mods from a generation of games past. The problem with crowd-funded projects is they don’t always succeed, far too often people are told that the companies that they backed spent the money on other things, resulting in failed projects. If you pay for a crowdfunded project by PayPal, you’ll soon have to find another way to protect your money as Paypal has announced it won’t offer protection to crowdfunded projects anymore.
The payment protection that was previously offered to all payments made through PayPal will come to an end for crowd-funded projects on the 25th June 2016. The news comes as a Kickstarter report detailed that around 9% of their projects failed to deliver any results.
Kickstarter payments are currently not applicable for payment protection so users who seek their funds from systems like IndieGoGo and other crowdfunding platforms will have to try to plead with the platform directly, many of which won’t cover costs from backing “bad projects”.
The new decision could come as part of the disaster recovery from the Zano drone project. After launching its own investigation and the projects expenses being revealed people were still waiting for a product while those that had received the drone were left with substandard projects which offered few if any of the advertised features.