CFPB warns against storing money in payment apps like Venmo and PayPal.
The Consumer Financial Protection Bureau (CFPB) has warned Americans against keeping their money in payment apps like Venmo, PayPal, and CashApp, as they may not provide federal deposit insurance through the Federal Deposit Insurance Corporation or the National Credit Union Administration. If one of these payment apps failed or went bankrupt, consumers could risk losing their money. The CFPB advises consumers to move any money held in a payment app to a federally-insured account to avoid risking their money. The CFPB also noted that 3 in 4 Americans use a payment app, and these companies often invest in the funds that are kept on their apps, allowing them to make money off of their users.
