But money stored in Venmo or CashApp or Apple Cash is not being held in a traditional bank account. For example, if a customer opened a PayPal Savings account, it would have deposit insurance through PayPal's partner bank, Synchrony Bank. But the general PayPal account is not covered by insurance. For Apple Cash, which can be insured through Green Dot Bank, it requires a user to verify their identity to get deposit insurance. "Tens of millions of American consumers and small businesses rely on payment apps to better spend, manage, and send their money.

Source: Economic Times June 02, 2023 11:14 UTC