09/25/2026
P2P (peer-to-peer) payment apps like Venmo, Cash App, and Zelle® are a convenient way to send money to friends and family, but did you know that the money in your app is most likely not insured?
Money you deposit in an account at an insured bank or credit union is protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. If your bank or credit union fails, you still have quick access to your money. However, deposit insurance does not apply when a nonbank payment company fails—like your favorite P2P app. If the nonbank payment app’s business fails, your money is likely lost.
And, though all of the major P2P systems encrypt, or shield, your financial information, some have been hacked or used by scammers. Here’s what you can do to help P2P payment services keep your money safe:
🛡️ Use more authentication security: PINs, biometrics and multi-factor authentication.
🛡️ Opt for a notification for every transaction.
🛡️ Pay and receive money only with people you know.
🛡️ Set a reminder to move your money from your P2P app to your bank account at least once a week.
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