Mon, Apr 27, 2015
Washington, District Of Columbia
Mobile payments made through Google Wallet will soon be insured through the Federal Deposit Insurance Corp. (FDIC) ( Yahoo! Finance April 20).
Typically, the FDIC insures banking funds up to $250,000, but funds stored in prepaid debit cards and most mobile wallet services are not protected.
As of now, Google Wallet's user agreement says balances are not FDIC-insured. However, a Google spokesperson confirmed in a statement to Yahoo! Finance that its current policy has changed.
The company will hold wallet balances in multiple banking institutions that are FDIC-insured, which means if anything were to happen to the company, users funds' would be protected.
Other prominent mobile wallet services, such Venmo and PayPal, do not offer FDIC insurance for users who leave cash in their accounts.
Source: CUNA News Now