Millions of Americans use mobile payment apps to pay friends, family and retailers, but they may not know that money held in the apps often lacks federal insurance protection.
As more people go cashless, apps like Venmo, Cash App and Apple Cash have gained popularity as an easy way to split a dinner tab, buy stuff at yard sales or pay bills.
Use of the apps increased during the pandemic, experts say, as people shifted to online shopping and contactless payment methods.
Transaction volume on such apps was an estimated $893 billion last year, the bureau said, and is projected to reach $1.6 trillion by 2027.
More than three-quarters of the nation’s adults say they have used one of four popular payment apps, according to the Pew Research Center.
Persons:
Apple Cash
Organizations:
Consumer Financial, Apple, Pew Research Center