Large companies offering digital wallets and payment apps will now be supervised by the Consumer Financial Protection Bureau (CFPB).
The CFPB on Thursday finalized rules that will bring it under oversight of companies that handle more than 50 million transactions a year. This includes Apple, Google, Amazon, PayPal, Block, Venmo, and Zelle. According to CNBC.
“Digital payments have gone from novelty to necessity, and our oversight must reflect this reality,” CFPB Director Rohit Chopra said in a statement. “This will help prevent illegal account closures.”
The agency already had enforcement powers over these large digital payment platforms, but the new rules will allow it to “conduct proactive checks to ensure companies are complying with the law.” said.
The CFPB noted that these platforms are particularly popular with middle- and low-income consumers, who use them at rates that “match or exceed the use of cash.” The most widely used apps collectively process more than 13 billion transactions annually, the agency said.
“Digital payment apps have become fundamental to everyday commerce, rivaling traditional payment methods such as credit and debit cards for both online and in-store purchases,” the CFPB said in a press release. ” states.
“What began as a convenient alternative to cash has evolved into an important financial tool that processes over $1 trillion in payments between consumers and their friends, families, and businesses,” it added.
