RISK: Storing your money in a payment app can be risky

Issue: Money stored in nonbank payment apps often is not protected by federal deposit insurance. If a payment app’s business fails, what happens next is often unclear.

Tip: Store your money in accounts with deposit insurance.

Release Date: 01 Jun 2023

Source: Consumer Financial Protection Bureau

Source Link: https://www.consumerfinance.gov/about-us/newsroom/consumer-advisory-your-money-is-at-greater-risk-when-you-hold-it-in-a-payment-app-instead-of-moving-it-to-an-account-with-deposit-insurance/