Some consumers are using services like PayPal, Venmo, Cash App and Apple Pay for direct deposit of paychecks, or simply storing lots of cash in them. But the Consumer Financial Protection Bureau wants people to know they don’t have the same protections as a bank or credit union.
in its report. These apps are also not immune to the same type of panic-based bank run that closed down Silicon Valley Bank and others recently, the agency added. PayPal Holdings\n \n , which owns both PayPal and Venmo, did not reply to a request for comment Friday. Neither did rival Block\n \n , which owns Cash App as well as payment system Square. But industry trade group the Financial Technology Association, which represents both firms, defended the safety of the funds.