CFPB warns against using Venmo, PayPal, and other payment apps.
The Consumer Financial Protection Bureau advises Americans not to keep their Money in a payment app. According to a consumer advisory released this week by the federal consumer watchdog, Money held in well-known apps like Venmo, PayPal, and CashApp is more vulnerable to financial instability because those accounts might not offer federal deposit insurance through the National Credit Union Administration or the Federal Deposit Insurance Corporation. Consumers could risk losing their Money if one of those payment apps failed or went bankrupt, and the federal agency noted that knowledge of this type of deposit insurance had become more crucial following the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank this year. Rohit Chopra, director of the Consumer Financial Protection Bureau, stated in a press release that "popular digital payment apps are used more and more often in place of a traditional bank or credit union account, but they do not have the same s...