Google Wallet funds get FDIC insurance

Google has moved to give users of its Wallet mobile payments service more security by ensuring that their funds are now FDIC-insured, according to Yahoo Finance.

The move, confirmed by Google, means that people who keep money in their Wallet balances will be protected - to the tune of up to $250,000 - if anything happens to the Web giant.

Other non-bank payment services that let customers store funds, such as PayPal and Venmo, do not offer FDIC insurance.

According to Yahoo, the Consumer Financial Protection Bureau is planning to tighten its rules on the subject, requiring firms to at least inform their users that they are not FDIC-insured.

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Google

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Regulation & Compliance Retail banking Payments

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Mobile & online banking

Comments: (1)

Jayakumar Venkataraman - Infosys Ltd - London 21 April, 2015, 13:19

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This is an important and a welcome development. Given Digital wallets (and those offered by non-banks) are just another avenue for parking balances the customer (depositor) needs a similar kind of protection to ensure they dont lose out.. This will also bring an element of regulation to the operations of these digital wallet providers but will also raise their cost of funds at the minimum by insurance premia they would need to pay.