The Consumer Financial Protection Bureau (CFPB) has announced that it will begin regulating large nonbank digital payment platforms like Apple Pay and Google Pay, subjecting them to the same federal oversight as traditional financial institutions. This move comes as digital payment systems become increasingly popular, with Apple Pay processing over 50 million transactions annually in the U.S.
The CFPB will now supervise companies handling more than 50 million transactions per year, ensuring they comply with federal consumer financial laws. This increased scrutiny aims to protect consumer privacy, prevent fraud, and address unfair practices like unwarranted account closures.
The CFPB today finalized a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps...The rule will help the CFPB ensure that these companies...follow federal law just like large banks, credit unions, and other financial institutions.
CFPB Director Rohit Chopra highlighted the shift of digital payments from novelty to necessity, emphasizing the agency's role in protecting consumers. With over 60% of the U.S. population using mobile wallets and Apple Pay being the most popular choice, the CFPB will be keeping a close watch on Apple's practices.
While Apple Pay hasn't faced any major controversies, this new regulation signifies increased accountability for tech giants entering the financial services space.
