Payment apps convenient, but less secure than cash, debit, credit or checks

Virtual wallet apps like Venmo, Cash App or Coin Base can be convenient ways to make digital payments. "The popularity of these have definitely been on the rise," said Katie Craig with North Carolina Public Interest Research Group.

Craig says the apps were first marketed for peer-to-peer transactions, like when friends want to split the cost of a meal. Broader use has led to headaches. "So the first is problems managing, opening, closing accounts," said Craig.

Most people may not realize the instant transactions are generally not reversible and offer fewer consumer protections than traditional payment methods. Users are more vulnerable to fraud, scams, strangers using the account or stealing information from a friend's list.

Among all states, North Carolina is among the top 10 for complaints. Three companies account for two-thirds of all complaints: PayPal which owns Venmo, Square with CashApp and 3rd, CoinBase.

Craig acknowledges some recent changes. "A few of these apps just added features to be able to change your settings to make more of these things private," she said.

Still, Craig says the payment apps are not as safe as writing a check or using credit or debit cards.

"Bottom line is if you choose to use these, it can be a great option but make sure you only do use it with trusted folks," said Craig.

NCPIRG advises another layer of safety by attaching the app to a separate bank account dedicated for peer-to-peer transactions.

NCPIRG is pushing policy makers to strengthen consumer protections with these digital payment apps.