Final rule brings supervision to Big Tech and other widely used digital payment apps handling over 50 million transactions annually WASHINGTON, D.C.

CFPB Finalizes Rule on Federal Oversight of Popular Digital Payment Apps to Protect Personal Data, Reduce Fraud, and Stop Illegal “Debanking”

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2024-11-21 12:30:02

Final rule brings supervision to Big Tech and other widely used digital payment apps handling over 50 million transactions annually

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (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 to ensure that these companies – specifically those handling more than 50 million transactions per year – follow federal law just like large banks, credit unions, and other financial institutions already supervised by the CFPB. The CFPB estimates that the most widely used apps covered by the rule collectively process over 13 billion consumer payment transactions annually.

"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."

Digital payment apps have become a cornerstone of daily commerce, rivaling traditional payment methods like credit cards and debit cards for both online and in-store purchases. Some of these apps are owned by the world’s largest technology conglomerates. These services have gained particularly strong adoption among middle and lower-income consumers, who now use payment apps for daily spending and funds transfers at rates that rival or exceed the use of cash. 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.

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