Financial watchdog warns of vulnerability in payment app funds.
TL;DR
The Consumer Financial Protection Bureau has warned customers of Venmo, PayPal, and CashApp not to store their money with these apps for the long term because the funds might not be safe during a crisis. Money stored in these payment apps may not be protected in the event of a bank run or financial distress, as they are not held in a traditional bank account and lack individual deposit insurance coverage. While some funds may be eligible for pass-through insurance coverage, customers may not fully appreciate when or under what conditions they would be protected.
Topics:businessfinance#cashapp#consumer-financial-protection-bureau#deposit-insurance#finance#paypal#venmo
- Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warns The Associated Press
- CFPB Finds that Billions of Dollars Stored on Popular Payment Apps May Lack Federal Insurance Consumer Financial Protection Bureau
- Money stored in Venmo, other payment apps could be vulnerable, financial watchdog warns KTLA Los Angeles
- Americans are holding ‘billions of dollars’ in uninsured accounts, federal agency warns. Here’s what you can do about it. MarketWatch
- Money stored on apps like PayPal and Venmo could be at risk, feds warn CBS News
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Read on The Associated Press