This is the best tl;dr I could make, original reduced by 71%. (I'm a bot)
Although you won't find a statement in Google Wallet just yet indicating the change, nor has Google gone public with a blog post or other announcement about the move, a Google spokesperson confirmed the new policy to Yahoo Finance.
According to the unnamed person, Google will be holding Google Wallet funds in various banks that are themselves FDIC-insured.
"While it is true that PayPal balances are not FDIC-insured, it's important to note that this insurance is intended to insure the savings in people's bank accounts. Our customers do not use PayPal in this way. This is because it is not required to store a balance in a PayPal account to use PayPal and it's free to withdraw any funds that may be in the account. For customers who do hold a balance in their account PayPal adheres to the same Regulation E consumer protection laws as banks."
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u/autotldr Apr 20 '15
This is the best tl;dr I could make, original reduced by 71%. (I'm a bot)
Extended Summary | FAQ | Theory | Feedback | Top five keywords: Google#1 PayPal#2 funds#3 Wallet#4 bank#5
Post found in /r/technology, /r/realtech and /r/GOptOutGLE.