If you keep funds in your Google Wallet account, you will be a lot more in peace now as from now on your money is insured by the FDIC.
According to news by Yahoo Finance, Google will now insure the money that you keep in a Google Wallet or in a bank that is insured by the Federal Deposit Insurance Corporation or the FDIC (@FDICgov). This means that when Google or any of the banks store your cash, your money will still be protected by the US Federal government.
The latest money transfer services are included in the non-banking institutions that means that they are not required to be federally insured, just like the payday lenders and prepaid debit cards. While most customers use them to transfer funds from one person or entity to another, sometimes they also keep their cash in the wallet for future use.
Even though users are not required to keep balances in these wallet services, users do keep thinking they are protected just like in the banks. Major mobile payment companies do inform their users that their balances in their accounts are not FDIC-insured and they do not offer mobile insurance.
While Google Wallet is yet to change their terms of services, a Google representative has confirmed the change.