Business

PayPal updates its policies to play nice with crowdfunding

PayPal president David Marcus
Image Credit: Devindra Hardawar

Crowdfunding campaigns have never been PayPal’s strong suit, but today the company said it wants to change that.

The eBay-owned company has been very successful when it comes to digital transactions, but for some reason the service has problems when there’s a crowdfunding element involved. For example, last month wearable tech company GlassUp raised an impressive $100,000 on IndieGoGo for its smart glasses device, but then had trouble getting PayPal to release its funds once the campaign ended.

In a recent blog post, PayPal said it’s “in the midst of overhauling our policies” to make sure situations involving crowdsourced funding work smoothly from now on. As for what those policy changes are, PayPal didn’t give any specifics. It did, however, indicate that it wasn’t content to ban all crowdsourced transactions from its platform.

For now, the company said it plans to have someone from risk management review each questionable crowdfunding campaign before it’s officially frozen. Obviously, that means there will be plenty of mistakes until a new policy is created that clearly spells out what you can and cannot do when it comes to crowdfunding transactions on PayPal.  Lets hope those policy changes come soon, because the number of crowdfunding projects is only going to increase.

Via Engadget

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