US Regulatory Agency: Money in mobile payments is not FDIC insured, whether fiat or crypto assets.

The Consumer Financial Protection Bureau (CFPB) warned in a report released on June 1st that any deposits or assets on mobile payment apps may not be covered by the Federal Deposit Insurance Corporation (FDIC) in the United States. In other words, users of those apps may not be aware of whether their money is protected.

PayPal and Apple Pay Named in Recent Report

According to data released by the Consumer Financial Protection Bureau (CFPB) in the United States, peer-to-peer (P2P) payments without intermediary banks are becoming increasingly popular due to their convenience and speed, garnering more public favor. The statistics show that currently, there are billions of dollars' worth of assets stored in payment-related applications, although not all of these applications are regulated.

The document emphasizes that consumers should store their funds in insured accounts rather than in unsecured and unapproved payment applications. It further states:

The report also singles out several mobile payment service providers, including PayPal, Apple Pay, Google Pay, Venmo, and Cash App. It notes that non-balance accounts in Google Pay and PayPal are not covered by FDIC insurance (some functionalities may be protected, for detailed information please refer to the report).

As reported by Cointelegraph here, mobile payment services in the United States are typically regulated by local state authorities and not by the federal government. Most state regulations only cover money transmission, transactions, and transfers, lacking specific rules for deposits.

Are Payment Platforms in Taiwan Protected?

According to the National Legal Database, Taiwan categorizes "mobile payments" into two categories: "electronic payments" and "third-party payments". Both are completed through mobile devices, but they have different legal definitions and corresponding regulatory frameworks.

The main differences lie in the scale of fund flows and the scope of business operations, with electronic payment companies having a minimum paid-in capital requirement of NT$500 million as an entry threshold, while third-party payment service providers do not have this restriction. The detailed comparison of the differences and related regulations is outlined in the table below.

For more information on deposit insurance, please refer to this link.