Google Wallet is taking steps to make things safer for their users. Google is moving funds stored in Google Wallet accounts to the FDIC-insured bank accounts, which would never be something users have to take advantage of, but if they do, they now have insurance up to $250,00 on the funds deposit.
Usually, users wouldn’t keep a balance in Google Wallet, if their using the service just as a pass-through mechanism, which is similar to how other services like PayPal works. Although, users can end up with balances in their account, it could be intentional as the user wants to be available, or it may be because the user has assumed funds would be transferred automatically.
Nowadays, the competitors such as PayPal and Venmo, don’t offer to put user funds in FDIC-insured institutions, but PayPal does offer zero responsability aginst fraud which could cover mainly of the problematic situations where a user’s funds might be threatened.
But does this new protection layer make you more likely to start using Google Wallet?