Financial watchdog warns of payment app vulnerability for stored money.
TL;DR
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.
Topics:businessfinance#cashapp#consumer-financial-protection-bureau#deposit-insurance#finance#paypal#venmo
- Money stored in Venmo, PayPal, CashApp and other payment apps could be vulnerable, financial watchdog warns KABC-TV
- Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warns WFAA
- Don’t store cash in Venmo and PayPal, US regulator warns CNN
- Money in Your Venmo and PayPal Apps May Be at Risk, CFPB Says CNET
- Tech Report: The risk of storing money on payment apps 41 NBC News
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