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ARTICLE · 13 JUNE 2023

CFPB Highlights Risks Of Storing Funds In Digital Payment Apps

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On June 1, the CFPB published an issue spotlight and a consumer advisory detailing the risks associated with storing funds on digital payment apps, particularly in the event of a platform's financial distress.

United StatesFinance and Banking
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Matt Benz
Matt Benz
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On June 1, the CFPB published an issue spotlight and a consumer advisory detailing the risks associated with storing funds on digital payment apps, particularly in the event of a platform's financial distress. Specifically, the issue spotlight presented the following findings with respect to consumer funds stored on payment apps:

  • More than three quarters of adults in the United States have used a digital payment app, with use being especially prevalent for younger adults. Approximately 85 percent of consumers aged 18 to 29 have used such a service. Transaction volume across all service providers in 2022 was estimated at approximately $893 billion, and is projected to reach approximately $1.6 trillion by 2027.

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