Warning: Don't Store Cash in PayPal, Venmo, or Square's Cash App. Here's Why

The advent of digital payment apps has changed the face of traditional finance. Once the domain of cash, checks, and credit and debit cards, a growing number of consumers are foregoing legacy payment methods in favor of these newer, digital counterparts.

In fact, many digital payment apps have evolved, becoming all-purpose financial technology (fintech) applications -- also called digital wallets -- which people use to store credit card information, process transactions, track payments, and even park cash, all from the convenience of your smartphone or other mobile devices.

However, a federal regulator is now warning consumers they should avoid storing cash in popular mobile wallets including (NASDAQ: PYPL), Venmo, or Block's (NYSE: SQ) Square Cash app, because those funds could ultimately be at risk. Here's why.

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Source Fool.com