CFPB warns against storing money in payment apps like PayPal and Venmo.

The Consumer Financial Protection Bureau (CFPB) has warned that funds stored in digital payment apps like PayPal or Venmo may not be covered by federal deposit insurance and are at greater risk during a financial crisis than money held in a bank or credit union account. The CFPB reported that transaction volume across all peer-to-peer payment apps totaled an estimated $893 billion last year and is expected to reach roughly $1.6 trillion by 2027. The agency added that "many Americans were reminded that funds deposited with banks and credit unions enjoy the safety afforded by federal deposit insurance through the FDIC or NCUA" after witnessing the failure of "large systemically important banks such as Silicon Valley Bank, Signature Bank and First Republic Bank" in recent months.