Google Wallet users can now rest assured that their funds are safe in the search engine giant’s hands.
That’s because the company is now ensuring its customers’ digital dosh is insured, according to a report by Yahoo Finance.
The US-based company is reportedly storing the funds in banks that are insured by the Federal Deposit Insurance Corporation.
This means that if things go awry at one of the banks, or even at Google, the US federal government will be backing the cash.
The federal system was first introduced back in the Great Depression, in the hope of giving the US public confidence in banking.
That’s because services like Google Wallet aren’t typically used to store money; they’re usually a stepping-stone from bank to payment.
The current Google Wallet user agreement says that user balances aren’t insured by FDIC, but the report claims that a Google spokesperson has ‘confirmed in a statement’ that the policy has changed.
Related: Apple Pay vs Samsung Pay
It’s worth noting that as of 2012, rival payment platform PayPal does not offer FDIC insurance, despite being a market leader.
Google’s move is likely an effort on the company’s part to better compete with Apple’s new Apple Pay mobile payment platform.
Google Wallet was first released back in 2011, but has seen slow uptake compared to Apple Pay, which launched late last year.
Neither Google Wallet nor Apple Pay currently work on devices bought outside of the USA; the latter will be rolling out to Canada this autumn, however.
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Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
