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.

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Google Wallet funds get FDIC insurance

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

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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Comments: (1)

Jayakumar Venkataraman

Jayakumar Venkataraman Sr Principal at Infosys Ltd

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.

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