U.S. CFPB expands oversight of Apple Pay, other digital payments services

The Consumer Financial Protection Bureau (CFPB) has finalized a rule that will bring greater oversight to Apple Pay and other nonbank companies offering digital funds transfer and payment wallet services. This includes Google and Amazon, as well as fintech firms such as PayPal, Block, and peer-to-peer payment services like Venmo and Zelle.
The CFPB’s claimed goal is to ensure that these nonbank companies adhere to federal consumer protection laws, similar to traditional banks and credit unions.
Hugh Son for CNBC:
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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.
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.
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.

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MacDailyNews Take: The date the new rule will be published in the Federal Register is listed as “Pending.” In 60 days, it will be January 20, 2025.

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