Financial watchdog warns of vulnerability in payment app funds.

The Consumer Financial Protection Bureau has warned customers of Venmo, PayPal, and CashApp not to store their money with those apps for the long term because the funds might not be safe during a crisis. Money stored in Venmo or CashApp or Apple Cash is not being held in a traditional bank account, so if there is an event similar to a bank run with those payment apps, those funds may not be protected. The Federal Deposit Insurance Corporation insures bank accounts up to $250,000, but generally, by default, the apps are not covered by deposit insurance.