Consumer Reports Evaluates Safety and Transparency of Digital Wallets

Recent evaluations by Consumer Reports highlight that digital wallets offer significant benefits such as convenience, speed, security, and improved access to financial services, with nearly three-quarters of Americans using them. However, the studies reveal notable risks: fraud monitoring and liability protections differ widely among providers, and these policies are often not clearly communicated to consumers, potentially causing confusion during disputes. Pass-through wallets like Apple Pay, Google Pay, and Samsung Pay rely on card issuers for fraud protection, while staged wallets such as Cash App, PayPal, and Venmo offer their own monitoring. Additionally, some providers use and share customer data beyond what is necessary and require extra steps to ensure funds qualify for FDIC insurance. Consumer Reports recommends providers improve transparency, minimize data collection, and make safety obligations explicit to enhance user protection and financial well-being. While technical security measures are generally robust, further improvements are needed in user authentication, privacy, and consumer education.