Why You Have To Be Careful With The Money in Your Digital Payment Apps

Veuer

A recent notice from the Consumer Financial Protection Bureau (CFPB) has suggested billions of dollars currently stored on popular payment apps like Venmo, PayPal and Cash App may not be federally insured. Veuer’s Chloe Hurst has the story!

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00:00According to the federal government, digital payment apps should not be trusted.

00:04Money Talks News reports, a recent notice from the Consumer Financial Protection Bureau

00:09has suggested billions of dollars currently stored on popular payment apps like Venmo,

00:15PayPal and Cash App may not be federally insured.

00:19Rohit Chopra, the CFPB director, says popular digital payment apps are increasingly used

00:25as substitutes for a traditional bank or credit union account, but lack the same protections

00:31to ensure that funds are safe.

00:33In 2022, transaction estimates across payment apps was at a volume of around $893 billion.

00:41That total is expected to reach $1.6 trillion by 2027.

00:46The CFPB notes the increasing popularity of payment apps in recent years, with around 75%

00:53of adults having used one at some point.

00:56Until payment apps are designed to automatically sweep balances into a user's insured account,

01:02consumers may need to take action to move their balances stored in payment apps.

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