Payment Apps Like Venmo and Cash App Put Customer Funds at Risk, Regulator Warns

The Consumer Financial Protection Bureau cautions storing money long-term on payment platforms due to lack of protections.
Money held on payment apps is not insured by the FDIC and could be lost if companies fail.
Payment companies have looser regulations on how they store and invest customer money, exposing users to risky investments.
Some payment apps claim to offer "pass-through insurance" but it does not protect customers if the company itself fails.
Millions of Americans use payment apps like Venmo, PayPal, and Cash App, conducting nearly $900 billion in transactions last year.