After a series of troublesome crowdfunding campaigns, PayPal has heeded to the fact that its policies are not apt for such projects and that a revamp is in order. PayPal has openly acknowledged that its commerce system wasn’t made for crowdfunded projects and that it is working on policy revamp to better support such projects in the future to avoid unnecessary delays when it comes to releasing funds.
Crowdfunding is increasingly gaining traction and because of PayPal quite a few projects have faced funding delays because of policy issues with the online payment system – prominent projects being Mailpile and GlassUp.
PayPal has decided to set things straight by announcing that it is reworking its policies in a bid to better accommodate crowdfunded projects. The company hasn’t outlined the changes or updates that may be done to the policies, but it has stated that it will be working with other stakeholders including crowdfunding sties, entrepreneurs and contributors to derive a permanent solution.
Acknowledging that crowdfunding is “powerful catalyst for innovation” PayPal has accepted that “its existing policies and processes aren’t working quite right for this particular fundraising model.” PayPal notes that up until a solution has been chalked, it will assign a senior member to look at crowdfunded projects before any action is taken.
“In the meantime, we will ensure that each crowdfunding campaign is reviewed by a senior member of my team before any action is taken. It’s a small, but important step.”
PayPal stressed that it is making changes every day to its policies to get things right and has also provided a direct email address “if anyone is having an outstanding issue with PayPal for a crowdfunding effort.” PayPal has also laid out crowdfunding documentation for developers here.