A Google representative mentioned on Yahoo Finance that the company’s Wallet services will soon be covered by the Federal Deposit Insurance Corporation (FDIC). The tech giant plans to hold users’ funds in banks that are FDIC-insured, extending the new policy to all digital wallets.

The FDIC allows banks to protect an account holder’s funds of up to $250,000. Due to the recent onslaught of security breaches worldwide, such coverage can help encourage users to store above average amounts of money in their online wallet accounts.

Google has not made an official statement on the changes. Furthermore, the Google Wallet user agreement still indicates the service is not FDIC-insured. But based on the credible source, it is likely that the implementation will happen very soon. The spokesperson confirmed that the internal policy within the company has already been updated to reflect the new coverage.

For now, the majority of Google Wallet users may not need extensive FDIC insurance. Most virtual wallet transactions and purchases are still low-value. However, in the future, the added coverage could be useful, as more and more companies begin to offer the option to make payments through digital wallet services.

By law, non-banking institutions such as Venmo, PayPal, and Google Wallet are not required to file for FDIC coverage. PayPal released the following statement to clarify the company’s views on FDIC policies:

“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.”