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> Regulators in the US are taking interest in the large sums collectively kept on stored value cards and the associated mobile apps. “The money stored on these
by tboyd47 10y ago
> Regulators in the US are taking interest in the large sums collectively kept on stored value cards and the associated mobile apps. “The money stored on these cards – and any similar stored value accounts – are effectively the same as bank deposits and as the total value now exceeds the deposits at smaller US banks, regulators are seeing a need to apply oversight,” O’Brien says.
What exactly are these "stored value cards" with associated mobile apps? Things like gift cards? Or are they talking about Apple and Android Pay?
- josephst18 10y agoPerhaps they mean apps like Square Cash or Venmo? Both of those hold money for users in a "virtual" account until the user chooses to move it into a real banking account.
- bigtunacan 10y agoIt sounds like they are talking about gift cards, gift card apps, and alternative payment apps. These days that's probably a very large umbrella. Everything from a Google Play or iTunes app to apps like BlendCard, Gyft, Dwolla, Venmo, Square Cash, etc... would likely fall into this. Depending on how PayPal is structured any funds you have sitting in a PayPal account could also fall under this umbrella; which that alone is probably a significant number these days.
- chiph 10y agoUntil they recently (and abruptly) closed, I had a house account at MyFitFoods. You put $500 on their house account and got a $25 bonus, and was able to make food purchases from it. When it ran low you could top it up. A similar comparison would be prepaid cellular phone service. You put money on the account and draw on it by making calls.