US watchdog warns of uninsured money on mobile payment apps.
TL;DR Summary
The Consumer Financial Protection Bureau (CFPB) has warned that funds stored on payment apps like PayPal, Venmo, and Cash App are not protected by federal deposit insurance, leaving users at risk of losing their money in a crisis. The CFPB advised consumers to transfer any funds stored on a payment app to an insured bank or credit union. Payment apps may claim to offer "pass-through insurance" on customer funds, but this coverage doesn't insure the customer if the app fails.
Topics:business#cash-app#consumer-financial-protection-bureau#federal-deposit-insurance#finance#paypal#venmo
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- Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warns The Associated Press
- Americans are holding ‘billions of dollars’ in uninsured accounts, federal agency warns. But how many even realize this? MarketWatch
- Money stored on mobile payment apps may not be FDIC insured, US watchdog warns Cointelegraph
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