Most money stored in nonbank payment apps is not often protected by federal deposit insurance, the CFPB warns.
"Popular digital payment apps are increasingly used as substitutes for a traditional bank or credit union account but lack the same protections to ensure that funds are safe," CFPB Director Rohit Chopra said.
CFPB is also monitoring whether tech companies adhere to fiscal safeguards as they expand into banking and payments, according to Chopra. Tesla mogul Elon Musk began exploringPeer-to-peer applications have proven lucrative. PayPal, the parent company of Venmo, reported $27.5 billion in revenue last year.The standards for storing consumer funds differ from company to company. Some invest the money in interest-earning loans and bonds instead of depositing into a traditional bank or credit union.
CFPB said Thursday it will continue coordinating with state and federal regulators to monitor progress on automated funds-sweeping into insured banking accounts. Until then, app users must be proactive in moving money into an insured financial facility until a method is adopted, the agency said.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
MSNBC host boldly says DeSantis 'even money' to beat frontrunner Trump for 2024 nomination: 'More competent'MSNBC host Joe Scarborough said Tuesday that Gov. Ron DeSantis, R-Fla., was 'more competent' than Donald Trump and 'even money' to become the GOP nominee.
Weiterlesen »
Ralph Yarl raises money for brain injury after shot knocking on wrong doorRalph Yarl — a Black teenager who was shot in the head and arm last month after mistakenly ringing the wrong doorbell — walked at a brain injury awareness event today in his first major public appearance since the shooting.
Weiterlesen »
Nothing screams new money like an expensive phone with a case, new report suggestsThe truly wealthy people are forgoing phone cases.
Weiterlesen »
Ultra Sound MoneyDuring the last month, over 143,830 ether worth $275 million has been burnt, according to tracker TheSamReynolds writes
Weiterlesen »
San Diego Attorney Once Hailed as Rising Star Accused of Stealing Settlement Money from ClientsIn 2021 San Diego Magazine named her a Woman of the Year Rising Star. Two years later, Kelly Duford Williams is a fugitive with the U.S. Marshals on her trail.
Weiterlesen »
Where Is the U.S. Economy Headed? Follow the MoneyWarning signs are flashing in the debt market, which moves money from lenders to businesses and families
Weiterlesen »