There’s no seller protection for domains but it makes the buyer more comfortable.
I saw that Efty has added the option to accept PayPal payments for domain names listed on its platform. I can see how this could boost sales; PayPal is trusted and much more recognizable to the general population than an escrow service like Escrow.com and Payoneer.
In a blog post, Efty wrote:
At Efty we do recommend using a licensed escrow integration partner such as Escrow.com or Payoneer Escrow for higher priced domain names but we also understand there are benefits of adding PayPal buy-it-now buttons for your lower priced inventory such as receiving instant payment for your domain name and allowing buyers to pay for your domain name in a matter of seconds instead of going trough the often longer, escrow process.
I agree with this.
Keep in mind that PayPal protects buyers of intangible goods like domain names but not sellers. So you’re taking some risk when you sell a domain with PayPal.
That said, it might be worth taking that risk for lower priced domains. I’ve sold domains and accepted PayPal when the amount of money was low enough that I wouldn’t lose sleep over it and when there was nothing suspicious about the buyer.
In the case of Efty, buyers will be able to instantly pay, so you can’t do due diligence ahead of time. Still, I think accepting PayPal could push a potential buyer over the edge. It makes them more comfortable.
Bottom line: I think it’s wise to accept PayPal for low-dollar transactions. You just need to decide what that threshold is for you.