Have the words “I will Venmo you” or “Google Pay me” ever come out of your mouth?  Mobile technology and peer-to-peer (P2P) apps like Venmo and Google Pay are changing how people exchange money - and words like cashless and contactless have entered our world.

P2P payment services are apps that require both parties to have an active user account and each account must be tied to a bank or credit card account. Once created, the pay app allows users to send money to other users by searching for their phone number, email address, or username. The money is instantly transferred electronically, and the transactions are usually free. 

Know the Risks:

• P2P apps are not federally insured, regulated, or supervised, even if they partner with an FDIC-insured bank.
• There is no requirement under the law for the pay app to return the funds or to help recover the funds.   
• There is also little you can do if you pay for a product or service that turns out to be unsatisfactory or that you never receive, or if you make a mistake or typo, like sending $400 instead of $40. 

Learn More About Payment Apps and Scams