bank spokesperson announces current policy changed whereby funds will be protected by the Federal deposit Insurance act . As a non - banking institution , Google Wallet , along with competitors PayPal and Venmo , is not legally required to be federally protected . With the new change to its policy , funds in Wallet Balance are protected if anything were to happen to the company like bankruptcy .
Google spokesperson confirmed current policy changed meaning funds will be protected by the Federal Deposit Insurance Corporation . As a non-banking institution , Google Wallet , along with competitors PayPal and Venmo , is not legally required to be federally insured . With the new change to its policy , funds in Wallet Balance are protected if anything were to happen to the company like bankruptcy .