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Fast, Safe, Social — Are We Sure About That?

Published: August 3, 2023

In today’s fast-paced digital world, money apps like Venmo and Cash App have gained popularity as convenient tools for managing financial transactions. They offer seamless peer-to-peer transfers and provide a simple way to split bills, pay friends, or make online purchases. However, it’s essential to recognize the potential risks associated with keeping money in these money apps. In this blog, we will explore why relying on money apps for storing funds might not be the wisest choice and why considering alternatives is a prudent financial decision.

In early June of 2023, the Consumer Financial Bureau warned that customers of PayPal, Venmo, and CashApp, are “at risk of losing their money in a crisis because the funds are not protected by federal deposit insurance,” (CBS News). In short, if the payment of these apps suddenly crashes, your money is gone. According to the Pew Research Center in a study they conducted last year in 2022, 57% of American adults have utilized PayPal, 38% Venmo, and about 26% have utilized CashApp. So in total, roughly 76% of Americans say “they have used at least one of these three payment sites or apps,” (Pew Research Center).

To safeguard funds stored in payment apps, experts recommend taking proactive measures. Consumer Reports suggests promptly removing transferred funds from the app into a traditional bank account. By doing so, you eliminate the risk of your money disappearing if the app were to fail. Setting up automatic reminders, such as email or text notifications, can also help ensure timely transfers. It is crucial to avoid leaving substantial amounts of money idle within the app, as this increases the potential danger.

While money apps offer convenience and simplicity, it’s vital to be aware of the risks associated with relying solely on these platforms for storing funds. The lack of federal deposit insurance and the possibility of app failures pose significant threats to the security of your money. By considering alternative options, such as promptly transferring funds to traditional bank accounts, setting up reminders for regular transfers, and being mindful of leaving substantial amounts of money within the app, you can better protect your hard-earned funds. It is essential to strike a balance between convenience and security, ensuring the safety of your finances in an ever-evolving digital landscape.

Take a minute to review the deposit opportunities at Brewery Credit Union for both checking and savings accounts. Contact us with any questions.

Sources:

https://www.cbsnews.com/news/paypal-cash-app-venmo-payment-apps-deposit-insurance-cfpb/

https://www.nytimes.com/2023/06/09/your-money/venmo-cash-app-paypal-payment-

BREWERY CREDIT UNION MISSION STATEMENT

“Providing superior financial service while economically empowering our Members and Community.”

We do our best every day to complete this mission with the greatest member satisfaction and highest quality service.

MEMBER OWNED

We have members, not customers. Brewery Credit Union is governed by a volunteer Board of Directors elected by the member-owners.

NOT-FOR-PROFIT

As a not-for-profit organization, we focus on meeting members needs. This means we take our profits and use them to offer lower loan rates, higher savings rates, and fewer service fees.

PEOPLE HELPING PEOPLE

Every day at Brewery Credit Union, you invest in the community and the community invests in you. We lend deposits to members who and work in Southeastern Wisconsin neighborhoods, making sure your money stays here.

WE ARE A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI)

Brewery Credit Union (BCU) offers the same commitment to our members since we chartered in 1934 as Brewery Workers Credit Union. The Brewery Workers Union Local 9 represented the many breweries and malting companies in Milwaukee. They formed the Credit Union for those in the brewing industry to have a safe place to borrow and save. The Brewery Workers Union Local 9 was also the original home of the Brewery Workers Credit Union. The Credit Union moved to Schlitz Brewery for a number of years until building our current home on Dr. Martin Luther King Jr. Dr. In 1984, the Credit Union changed our name to Brewery Credit Union and currently offers membership to anyone who lives in Milwaukee, Ozaukee, Waukesha, Racine, Kenosha, or Washington counties, in addition to members of the Museum of Beer and Brewing. “Once a member always a member,” means should you ever relocate out of the area, your membership can continue.

Our members have access to the many products and services that Brewery Credit Union offers. We pride ourselves on offering new technology to make transacting business easier and faster than ever. The Credit Union’s mission of economically empowering our members and communities means that we will not judge a member for a blemished past. We want to help our members reach their financial goals and dreams. We believe that everyone deserves the opportunity to achieve financial security and have access to safe, low-cost financial products and services. If you believe our mission will benefit you financially, or your membership will support members seeking to benefit from our mission, we would like you to become a member/owner of our great organization.