Manhattan District Attorney Alvin Bragg is urging digital payment apps like Venmo, Zelle, and Cash App to enhance consumer protections due to a surge in financial app thefts in New York City. He has requested features such as secondary passwords, lower daily transfer limits, and enhanced monitoring to deter scammers and safeguard users' money. Bragg sent letters to the CEOs of these companies and emphasized the need for common-sense solutions to combat fraudulent schemes exploiting victims' digital payment apps. The companies, including Cash App, PayPal (owner of Venmo), and Early Warning Services (operator of Zelle), have expressed their commitment to building trust and ensuring the safety of their platforms.
The Consumer Financial Protection Bureau (CFPB) has proposed a rule to extend its oversight to digital wallets and payment apps operated by companies like Apple, Google, PayPal, and Block. The rule would subject large companies processing over five million financial transactions per year to the same supervisory examinations conducted on banks and credit unions. Approximately 17 companies, handling $13 billion in transactions annually and holding an 88 percent market share in the US, would be affected. The proposed rule aims to ensure appropriate oversight and crack down on regulatory arbitrage by large technology firms and nonbank payments companies. The rule could take effect next year, pending public comments and finalization.
The Consumer Financial Protection Bureau (CFPB) has warned consumers that money held on mobile payment apps like Venmo, Cash App, or PayPal could be lost if the companies fail since the funds are not automatically insured by the government. The CFPB advises consumers to move money held on digital payment apps to traditional banks and credit union accounts, which guarantee federal deposit insurance. The warning comes as more Americans than ever are using digital payment apps, and transaction volume across all nonbank digital payment services is projected to reach around $1.6 trillion by 2027.
The Consumer Financial Protection Bureau (CFPB) has warned that digital payment apps like Cash App, PayPal, and Venmo pose a financial risk to consumers as the money stored on these apps may not be held in accounts with federal deposit insurance. This means that if there's a financial crisis, users could lose their funds. The CFPB also noted that these apps lack the same regulatory oversight as insured banks or credit unions, and their user agreements tend to lack clarity and specifics about how they handle users' money. The agency advises consumers to consider keeping their money in a high-yield savings account insured by the Federal Deposit Insurance Corp.
The Senate has passed a law suspending the debt ceiling, preventing a national default. The Consumer Financial Protection Bureau has warned Americans about the risks of storing money on digital payment apps, which lack the same protections as traditional bank accounts. The Social Security Administration will distribute the first batch of payments for June tomorrow. The Federal Reserve has stated that companies are keeping prices high because they can, leading to elevated inflation. A new survey shows that millennials are especially worried about how AI will affect their job and salary prospects. The Bureau of Labor Statistics estimates that around 2.1 million jobs will be lost due to automation and AI, but the economy is projected to add 10.4 million jobs by 2031. President Biden and House Speaker Kevin McCarthy brokered a deal to suspend the debt ceiling for two years, effectively raising it, and to fund the VA's medical care.
