A 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.
, 76 percent of U.S. adults have used a payment app at least once, although 34 percent of users say they’re not confident payment app companies can keep their personal information safe. One in 10 users said they had fallen victim to a scam, according to the survey.In its advisory, the CFPB recommended that users move money off their payment apps and into their bank accounts.
Moreover, payment companies have less oversight than traditional banks in how they store and invest users’ funds, allowing payment companies to possibly invest in risky assets, the agency said. “The company can earn money on these investments, while generally paying no interest to you,” the agency wrote
But accounts with payment apps are “safe and transparent,” said Miranda Margowsky, a spokeswoman for the Financial Technology Association, whose members include PayPal and Cash App parent company Block.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Money stored on apps like PayPal and Venmo could be at risk, feds warnGovernment regulators said Thursday that people who keep cash with payment tools like Cash App, PayPal and Venmo are at risk of losing their money in a crisis because the funds are not protected by federal deposit insurance.
Leer más »
Bob Lee murder: Cash App founder seen with suspected killer Nima Momeni in new surveillance imagesSan Francisco prosecutors released surveillance images they say show Cash App founder Bob Lee and his suspected killer, Nima Momeni, on the night of Lee's stabbing death.
Leer más »
Money stored in payment apps like Venmo may be more vulnerable than bank deposits, CFPB saysMost money stored in nonbank payment apps is not often protected by federal deposit insurance, the CFPB warns.
Leer más »
Money stored in Venmo could be vulnerable, 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.
Leer más »
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.
Leer más »
Money stored in Venmo, 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 since their funds may not be covered by deposit insurance, the Consumer Financial Protection Bureau warned on Thursday.
Leer más »