Apple Pay, Cash App, and other digital wallets will be regulated more like banks now

Comments

• dharmacurious@slrpnk.net ⁨5⁩ ⁨months⁩ ago

  They need to be insured like bank accounts. Everyone I know that makes less than 50k a year is getting their shit direct deposited to cashapp and using cashapp like it’s their bank. If they go belly up in a financial crash, it’s going to be like the great depression, but only for already poor folk

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  • themurphy@lemmy.ml ⁨5⁩ ⁨months⁩ ago

    like the great depression, but only for already poor folk

    Battle music plays

    You encountered Capitalism!

    Fight Bag Vote Run

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    • DdCno1@beehaw.org ⁨5⁩ ⁨months⁩ ago

      There being a purpose to capitalism implies that there is some grand plan behind this system. There isn’t.

      I think you are so terrified by the idea that the world and it’s economic system are inherently chaotic that you are coming up with entirely irrational attempts at smart-sounding explanations like this one.

      This doesn’t mean that there aren’t elites exploiting their favorable position in the current system, including in times of crisis that they caused themselves.

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    • tardigrada@beehaw.org ⁨5⁩ ⁨months⁩ ago

      @themurphy@lemmy.ml, did you even read @dharmacurious’ comment or even the article?

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  • DavidDoesLemmy@aussie.zone ⁨5⁩ ⁨months⁩ ago

    Cashapp doesn’t hold customer money. It has banking partners that hold customer funds.

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    • ThemboMcBembo@beehaw.org ⁨5⁩ ⁨months⁩ 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.

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    • dharmacurious@slrpnk.net ⁨5⁩ ⁨months⁩ ago

      even so your money isn’t FDIC insured if you’re using apps as your main way to bank.

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• flashgnash@lemm.ee ⁨5⁩ ⁨months⁩ ago

  Do people store their money in these things? I use Google pay quite often, but it draws the money from the bank at the time of payment

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  • fuckwit_mcbumcrumble@lemmy.dbzer0.com ⁨5⁩ ⁨months⁩ ago

    It will give the CFPB the authority to oversee their compliance with federal laws surrounding privacy, fraud, and other rules through “proactive examinations.”

    It’s to help stop scams, not for people trying to use them as a bank or something.

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