PayPal valued at about $52bn in market return
PayPal has revised its seller protection policy to include intangible goods and services. In Picture: Paypal CEO Dan Schulman takes part in the company's relisting on the Nasdaq in New York, July 20, 2015. PayPal Holdings Inc shares jumped as much as 11 percent in their highly anticipated return to the Nasdaq on Monday, valuing the company at about $52 billion.Reuters

PayPal, a global leader in payments, has revised the terms of its seller protection policy, including the sale of intangible goods into its ambit. PayPal's existing seller protection policy only covered merchants who dealt with tangible goods and now covers services offered by Indian app developers, tutors and even event ticket sellers.

PayPal, in a statement, said that Seller Protection Program for Intangibles will cover two types of buyer complaints. PayPal will actively protect sellers if customers mark a transaction as unauthorised, claiming they never authorised the payment to the seller as well as when customers maliciously claim that they never received any services in exchange.

Anupam Pahuja, country manager and managing director of PayPal India said: "PayPal enables small businesses, freelancers and other businesses to sell their products and services across the globe. A key objective for PayPal in India is to ensure that genuine sellers, small or big, are protected from unauthorised claims and chargebacks. Growing instances of online fraud act as a barrier for sellers selling online services and other intangible goods to clients abroad. With our Seller Protection Program for Intangibles, we aim to empower freelancers and merchants in India to sell with confidence and assure them that they have our support to grow."

If a seller believes that PayPal needs to intervene in such cases, then the issue is passed on to the PayPal Resolution Centre, which will work with sellers and ensure that they are not left with the short end of the stick.

According to the statement, a large portion of PayPal's customer base includes merchants and freelancers selling intangible products, who will directly benefit from the revision in PayPal's policy.

The statement added that the protection will come into effect starting June 25, 2016.

Also read