Peer-to-Peer payment apps like PayPal, Venmo, Zelle and Cash App have exploded in popularity in the last several years. Convenience, transaction speed, and flexibility across multiple smartphone types offer consumers an easier way to pay for services and split bills with friends and family. The pandemic further accelerated this ongoing shift toward a cashless future.
However, recent bank and crypto exchange failures highlight the risk of keeping your funds in accounts that exceed or simply lack FDIC insurance coverage. A report from the Consumer Financial Protection Bureau (CFPB) casts a spotlight on deposit risks among popular mobile payment apps, while explaining how consumers can hedge their risk of a collapse.
