THE RISKS OF USING PEER-TO-PEER PAYMENT APPS

A recent report from the Consumer Financial Protection Bureau found that billions of dollars stored in major peer-topeer payment apps, such as Cash App, PayPal and Venmo, may lack the same federal deposit insurance coverage that protects users of standard U.S. banks and credit unions from total ruin in a crisis.

- BENJAMIN DEMERS

Check an app's user agreement to see whether it keeps your money in a bank or credit union account or invests your money in loans and bonds. Also check for details on whether your money may be insured at a bank or credit union, as well as what happens in the case of the payment app's collapse or bankruptcy.