Report: Google Wallet funds now ensured by FDIC

googlewallet
Credit: Florence Ion

Any money stored in your Google Wallet account is now secured by the FDIC, which is the same level of protection you’d have at a traditional bank.

According to a Yahoo report, Google recently changed how it holds on to money, and is now keeping it in one of several FDIC-insured banks while stored in your Wallet account. This trumps PayPal, Venmo, and other solutions which currently don’t offer this type of protection.

The FDIC protects up to $250,000 of your money stored in a bank. Should something catastrophic happen to that institution, your funds aren’t wiped out. 

While you don’t need to store money in Google Wallet in order to use tap-to-pay with your Android phone, you’re allowed to do so. Typically Wallet just debits a connected bank account. Apple Pay works similarly, serving as the digital go-between.

Google also throws around rewards from time to time, using Google Wallet as the depository for your free cash, which may be an incentive for this extra security feature.

However, if you use the physical Google Wallet card, you do need to have an account balance for any transaction. While your money was probably already safe to begin with, this gives Google Wallet a nice perk it can use as a selling point over any rivals.

Why this matters: After having a head start on mobile payments Google Wallet is only now picking up steam, ironically due to wider tap-to-pay usage driven by Apple Pay. While Apple doesn’t allow third-party tap-to-pay services on its hardware, Google has had to battle a variety of rivals. Its biggest competition could still be coming when Samsung rolls out Samsung Pay on its popular Galaxy S6.

This story, "Report: Google Wallet funds now ensured by FDIC" was originally published by Greenbot.

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