People who use Google Wallet should be able to rest a bit easier, as Google Wallet funds are now protected by the federal government.
Google has altered the terms of service for its Wallet product and will store users’ funds in FDIC-insured banks. This means if Google collapses, users’ money will be safe.
Similar cash transfer apps, such as Venmo and PayPayl, do not offer such protection for their users because the funds aren’t stored in FDIC-insure banks.
Mobile payment services like Apple Pay are based on credit card transactions, so user funds are not generally stored in a third-party bank account at all.
