Top Price Market
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

Top Price Market

Business

CFPB expands oversight of digital payments services including Apple Pay and Cash App

by November 22, 2024
November 22, 2024
CFPB expands oversight of digital payments services including Apple Pay and Cash App

The Consumer Financial Protection Bureau on Thursday issued a finalized version of a rule saying it will soon supervise nonbank firms that offer financial services likes payments and wallet apps.

Tech giants and payments firms that handle at least 50 million transactions annually will fall under the review, which is meant to ensure the newer entrants adhere to the laws that banks and credit unions abide by, the CFPB said in a release.

The CFPB said that seven nonbanks qualify for the new scrutiny. That would include payments services from Apple, Google and Amazon, as well as fintech firms, including PayPal and Block, and the peer-to-peer services Venmo and Zelle.

While the CFPB already had some authority over digital payment companies because of its oversight of electronic fund transfers, the new rule allows it to treat tech companies more like banks. It makes the firms subject to “proactive examinations” to ensure legal compliance, enabling it to demand records and interview employees.

“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said CFPB Director Rohit Chopra. “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.”

A year ago, the CFPB said it wanted to extend its oversight to tech and fintech companies that offer financial services but that have sidestepped more scrutiny by partnering with banks. Americans are increasingly using payment apps as de facto bank accounts, storing cash and making everyday purchases through their mobile phones.

The most popular apps covered by the rule collectively process more than 13 billion consumer payments a year, and have gained “particularly strong adoption” among low- and middle-income users, the CFPB said on Thursday.

“What began as a convenient alternative to cash has evolved into a critical financial tool, processing over a trillion dollars in payments between consumers and their friends, families, and businesses,” the regulator said.

The initial proposal would’ve subjected companies that process at least 5 million transactions annually to some of the same examinations that the CFPB conducts on banks and credit unions. That threshold got raised to 50 million transactions in the final rule, limiting the expanded powers from roughly 17 companies to just seven, the agency said Thursday.

Payment apps that only work at a particular retailer, like Starbucks, are excluded from the rule.

The new CFPB rule is one of the rare instances where the U.S. banking industry publicly supported the regulator’s actions; banks have long felt that tech firms making inroads in financial services ought to be more scrutinized.

The CFPB said the rule will take effect 30 days after its publication in the Federal Register.

It is not known whether the incoming Trump administration will decide to change or kill the new rule, but it is possible that expanded oversight of tech companies aligns with future CFPB leadership.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Israel keeping its ‘eyes open’ for Iranian attacks during Trump transition period, ambassador says
next post
‘Great meeting’: Tim Scott reveals Trump’s ‘all in’ to help GOP protect majority in 2026 midterms

You may also like

Home Depot co-founder Bernie Marcus dies

Dollar Tree says it’s winning over higher-income shoppers...

What Fed chief Powell said about crypto that...

Nonunion autoworkers are watching the UAW — and...

Job openings nudged lower in November, down to...

Microsoft to roll out new autonomous AI agents...

American Airlines fined $4.1M for dozens of long...

New sports bundle could give cord-cutting fans their...

Macy’s confirms rogue employee hid $151 million in...

Amazon’s $4 billion investment in AI firm Anthropic...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Metals and Mining Virtual Investor Conference: Presentations Now Available for Online Viewing

    • Vance says India-Pakistan conflict ‘none of our business’ as Trump offers US help

    • Trump pushes tax hikes for wealthy as ‘big, beautiful bill’ deadline looms

    • US and other allies of Ukraine pile pressure on Putin, threatening fresh sanctions if he refuses 30-day truce

    • OpenAI’s Sam Altman thanks Sen John Fetterman for ‘normalizing hoodies’

    Categories

    • Business (1,632)
    • Investing (4,782)
    • Politics (7,552)
    • Uncategorized (2)
    • World (6,137)
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions
    • Email Whitelisting

    Disclaimer: toppricemarket.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 toppricemarket.com | All Rights Reserved


    Back To Top