CFPB warns of vulnerability in payment app funds
TL;DR Summary
The Consumer Financial Protection Bureau (CFPB) has warned that money held in non-bank, peer-to-peer payment apps is not guaranteed for federal deposit insurance protection, making the funds more vulnerable. The watchdog said that 85% of adults aged 18 to 29 in the US who have used PayPal, Cash App, Zelle and other peer-to-peer apps would be in danger of losing their money if it was stored on one of those platforms and the companies failed. The risks to user funds increase as the applications grow in popularity.
Topics:business#banking#consumer-financial-protection-bureau#deposit-insurance#finance#payment-apps#peer-to-peer
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- CFPB Finds that Billions of Dollars Stored on Popular Payment Apps May Lack Federal Insurance Consumer Financial Protection Bureau
- Americans are holding ‘billions of dollars’ in uninsured accounts, federal agency warns. Here’s what you can do about it. MarketWatch
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