CFPB warns against storing large sums of money in Venmo, PayPal, and Cash App.

The Consumer Financial Protection Bureau has warned Americans against storing large amounts of money in payment apps like Venmo, PayPal, and Cash App as they are not federally regulated banks and deposits held in them may not be federally insured. The lack of federal regulation and oversight on the apps comparable to what banks have to face is concerning, given the massive amounts of money passing through the apps. The CFPB also found that user agreements for the payment apps often contain little to no information about whether a user's money can be insured in a given app, or whether their money may be used for other investments or purposes within the company while it is held in the app.