even so your money isn’t FDIC insured if you’re using apps as your main way to bank.
Comment on Apple Pay, Cash App, and other digital wallets will be regulated more like banks now
DavidDoesLemmy@aussie.zone 3 weeks agoCashapp doesn’t hold customer money. It has banking partners that hold customer funds.
dharmacurious@slrpnk.net 3 weeks ago
ThemboMcBembo@beehaw.org 3 weeks ago
There’s a secondary problem.
If a user has money in their account and the app creator goes under, they lose access but the actual bank hasn’t failed. Insurance on the account doesn’t kick in because there’s no bank failure to mitigate, but the user still doesn’t have access to their money before.
These regulations weren’t written with banking-as-a-service in mind, and don’t hold up well now that it’s not a weird edge case but a primary way companies provide banking services.