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PayPal Sets Out Policies for Crowdfunding

by Liz Gannes

PayPal got some flack last year for freezing accounts of crowdfunding campaigns, citing the potential for abuse. Today the company is formalizing the work it has been doing to make nice with crowdfunders through some policy announcements that will affect campaigns on sites that use PayPal, like Indiegogo and CrowdRazr, and require people raising money to submit a bunch more information. What really matters is that PayPal may now hold onto money for campaigns that are pre-selling products in addition to crowdfunding, so money isn’t transferred far before a product is delivered.

This article originally appeared on Recode.net.

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