PayPal says US consumer watchdog opened investigation into Venmo
PayPal Holdings said on Friday it was cooperating with a civil investigative demand from the US Consumer Financial Protection Bureau it had received in relation to its Venmo app’s alleged unauthorized fund transfers and collections processes.
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The demand from the U.S. Consumer Financial Protection Bureau was made last month, the digital payment processor said in a regulatory filing.
Venmo is a popular mobile app for person-to-person payments in the United States.
It was a part of PayPal's $800m acquisition of Braintree in 2031.
Venmo, which was founded in 2009, allowed users to pay each other without having to exchange cash or write a cheque. The app employed peer-to-peer technology to send money online, but it wasn’t a holding account, with users needing to connect a debit or credit card to the app.