PayPal says US consumer watchdog investigating payment app Venmo

PayPal says US consumer watchdog investigating payment app Venmo

FILE PHOTO: The German headquarters of PayPal is pictured at Europarc Dreilinden business park sout
File photo of the German headquarters of the electronic payments division of PayPal. (File photo: Reuters/Fabrizio Bensch)

NEW YORK: PayPal Holdings said on Friday (Feb 5) it was cooperating with the US consumer watchdog regarding a civil investigation demand relating to its app Venmo's alleged unauthorised fund transfers and collections processes.

The demand from the US 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 competes with apps like Cash, which is run by payments processor Square.

In the fourth quarter, Venmo, which has been part of PayPal since 2013, processed about US$47 billion in total payments volume, up 60 per cent from last year.

Source: Reuters/dv

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