Consumer Financial Protection Bureau extends oversight to digital payment apps
- The Consumer Financial Protection Bureau will oversee apps providing financial services.
- The new rule aims to protect consumer privacy and prevent fraud.
- The oversight reflects the growing use of digital payments as primary transaction methods.
On November 21, 2024, the Consumer Financial Protection Bureau announced new regulations to oversee non-bank companies that provide financial services, targeting online payments and wallet applications. This rule encompasses major tech firms like Apple, Google, and Amazon, alongside payment service providers such as PayPal and Block, which annually manage over 13 billion consumer payments. The CFPB aims to ensure that companies handling significant transaction volumes, specifically those executing at least 50 million transactions per year, function under regulations similar to those imposed on traditional banks. The shift responds to the evolving landscape where consumers increasingly rely on digital payment methods, often bypassing standard banking interactions. As the rule mainstreams regulatory oversight for these technology companies, it represents a significant step towards consumer protection within a burgeoning digital transactions market.