Customers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe during a crisis.
Customers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe.Customers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe during a crisis, the Consumer Financial Protection Bureau warned Thursday.
The Federal Deposit Insurance Corporation insures bank accounts up to $250,000. But 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. "We find that stored funds can be at risk of loss in the event of financial distress or failure of the entity operating the nonbank payment platform, and often are not placed in an account at a bank or credit union and lack individual deposit insurance coverage," the CFPB said in its report.
Peer-to-Peer payment apps and non-banks offering bank-like services have exploded in popularity in the last decade. Venmo now has more than 90 million customers and recently announced it was going to allow parents to create accounts for their teenage children, potentially bringing in tens of millions of new customers for the app.
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Don’t store money in Venmo, Cash App or PayPal, regulator saysA federal consumer watchdog on Thursday warned consumers not to store money on payment apps such as Venmo, Cash App or PayPal, because that money is not automatically insured by the government and could be completely lost if the companies fail.
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Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warnsCustomers of Venmo, PayPal and CashApp should not store their money for the long term with these apps because their funds might not be safe during a crisis, the Consumer Financial Protection Bureau warned on Thursday.
Read more »
Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warnsCustomers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe during a crisis.
Read more »
Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warnsCustomers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe during a crisis.
Read more »
Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warnsCustomers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe during a crisis.
Read more »
Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warnsCustomers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds might not be safe during a crisis.
Read more »