Paypal is updating their list of, "not eligible for Purchase Protection," come June 25, 2016. One of the things on the chopping block - payments for crowdfunding platforms.

An independent Kickstarter fulfillment report conducted by the University of Pennsylvania, which examined 456,751 backers of 65,326 projects. Found that the failure rate was nine percent, and depending on the kinds of projects, it could range from five to fourteen percent. The projects that likely would fail were the ones below $1,000 - those had a failure rate of fourteen percent. In the report, Professor Ethan Mollick stated that "failure can happen to anyone," which I believe is exactly why PayPal is moving away from that type of platform; there are just too many unknowns.

Paypal began offering Purchase Protection to cover intangibles on July 1, 2015; less than a year ago. It would review buyer disputes regarding intangible items when the customer claimed they had not received the item or service, or if the service or goods were not as described. Although, things did not always go smooth, and there has been quite a bit of confusion by both creators and buyers in the past.

This will mostly affect Indegogo as Kickstarter was not protected by PayPal, in fact, Kickstarter has never provided Purchase Protection.