The U.S. Consumer Financial Protection Bureau (CFPB) will supervise major digital payment platforms like Apple Pay, Google Wallet, PayPal, and Cash App, treating them similarly to banks.
This new rule applies to platforms processing over 50 million U.S. dollar transactions annually and grants the CFPB authority to conduct rigorous examinations, ensuring compliance with financial laws concerning privacy, fraud prevention, and account stability. Google Play's Black Friday deals might be impacted by these changes.
CFPB Director Rohit Chopra emphasized the shift of digital payments from novelty to necessity, justifying increased oversight. This move aims to create a level playing field between traditional banks and tech companies offering financial services. StoreCash's recent funding highlights the growing importance of digital transactions.
While not explicitly named, Apple Pay falls under this rule due to its widespread use. The CFPB estimates the affected platforms handle over 13 billion transactions yearly. For further details on financial technology news, refer to Binny Bansal's resignation from PhonePe's board.