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CFPB to Supervise Big Tech Payment Apps Processing 13 Billion Transactions, Treating Them Like Banks

Nov 21, 2024, 01:22 PM

The U.S. Consumer Financial Protection Bureau (CFPB) has finalized a rule on November 21, 2024, to bring Big Tech companies offering digital wallets and payment apps under federal supervision. The rule subjects major technology firms such as Apple Pay, Google Pay, Amazon Pay, PayPal, Venmo, Cash App, Square, and Zelle to the same scrutiny faced by traditional banks, with the CFPB applying rigorous oversight to ensure consumer protection. The supervision applies to nonbank companies handling over 50 million transactions per year, overseeing more than 13 billion annual financial transactions. CFPB Director Rohit Chopra stated, "If you use an app on your phone to transfer money or make payments, you shouldn't suddenly lose access to your money." The new rule aims to address risks associated with digital payment platforms and ensure that consumers do not lose access to their funds when using these apps. Notably, crypto wallets are excluded from this rule.