SACRAMENTO, Calif. — The start of 2025 is rapidly approaching and now’s the perfect time to rethink and reset your finances. One way is not storing your money in payment apps like Venmo, PayPal, Apple Pay and Zelle.
More than three-quarters of U.S. adults say they’ve used a payment app, according to the Pew Research Center. The Consumer Finance Protection Bureau says the transaction volume on these apps is expected to go from $893 billion to $1.6 trillion by 2027.
Experts like Sacramento-based financial specialist Shayne Corriea-Fernandez warn that while the apps bring convenience, they also come with security concerns.
“We are in a digital world and that means scammers and hackers are getting a lot more savvy. Recently I had my accounts hacked and it was pretty brutal,” said Corriea-Fernandez.
She says hackers gained access to her digital card in her payment app through a merchant with whom she used her digital card.
“Venmo and Paypal, they’re great for those quick exchanges but the pitfall is just know that there are hackers out there that can get into your accounts digitally and then it’s a nightmare trying to get the money back,” she said.
The Consumer Financial Protection Bureau says funds stores on payment apps often lack insurance compared to when you store your money in an Federal Deposit Insurance Corporation (FDIC)-insured bank and are protected from losses up to $250,000.
ABC10 asked Corriea-Fernandez for best practices.
“(You) definitely don’t want to park a large sum of money. I mean, I usually have no more than $200 in my Venmo app,” she said.
And if you do get hacked, don’t wait to act.
“Setting up alerts so that if there’s something out of the ordinary your bank can text you,” she said. “Don’t wait. Call right away to file your claim.”
Experts say keeping your money in payment apps could also mean losing out on the interest from high-yield savings accounts, so double check your app. Cash App and PayPal do offer separate high-yield, FDIC-insured savings products.
Do you have a money question? Email Lora Painter at lpainter@abc10.com
WATCH MORE ON ABC10: Are you middle class? Why it's changing and the impacts
