Change Language
wds-media
  • Home
  • Lending
Global newsletter: Digital payment apps are not savings accounts

Global newsletter: Digital payment apps are not savings accounts

PayPal and Venmo Accepted Here sticker is seen at the entrance to a Panda Express restaurant in Sherwood, Oregon.

The following is an excerpt from today’s Global Newsletter.

If you like to store deposits in digital payment apps, you may want to rethink that strategy.

The Washington Post (soft paywall) had a story yesterday that warned consumers that there is no insurance on those funds, and they may be at risk.

“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,” Consumer Financial Protection Bureau Director Rohit Chopra said in a news release Thursday.

Most people likely assume their funds are kept in a traditional bank to be drawn upon when transacted because — let’s be honest — no one reads the terms and conditions. Perhaps instead of speed-scrolling through the mountain of text to activate the “I agree” button, we should be more diligent about informing ourselves before signing in virtual blood.

It’s a good practice to link bank accounts and move balances back and forth as needed on a regular basis. It’s a small burden in exchange for the ease of transfer the apps bring.

Kiev, Ukraine - June 27, 2014: Person with credit card in hand looking on a brand new Apple iPad Air with Paypal website on a screen. Paypal is the worldwide e-commerce business service allowing payments and money transfers via internet, founded in June, 1998.

From Fintech Nexus

Share this article  Global Credolab takes unique approach to credit scoring, financial inclusion
By Tony Zerucha   
Lenders have long identified the need to develop better scoring models that include those with thin or no credit files, but the problem persists, Credolab’s CSO Michele Tucci said. Credolab tackles the problem using privacy-consented and permissioned data through smartphones and web pages. 
Share this article  Global Three fintech design and development tips to drive adoption
By Kristiane Mandraki   
In a world where user experience is do or die, fintechs lose wallet share and loyalty due to mistakes around frontend design and development.
Share this article  Global Replay: Weekly news show, June 1, 2023
By Fintech Nexus Staff   
Watch the replay of our weekly news roundup show with hosts Peter Renton and Todd Anderson, with special guest Ron Shevlin.

Also making news

New Meme Coins To Buy Now Monday, April 22 – Book of Meow, Bonkcon, Grimace, 5th Scape

New Meme Coins To Buy Now Monday, April 22 – Book of Meow, Bonkcon, Grimace, 5th Scape

Read More