The 4Geeks Podcast (41): CFPB to Regulate Digital Payment Apps
CFPB expands oversight to major digital payment platforms like Apple Pay and PayPal, subjecting them to the same regulations as traditional banks.
The Consumer Financial Protection Bureau (CFPB) is expanding its oversight to include major digital payment providers like Apple Pay, Google Pay, PayPal, and Cash App.
This new rule will subject these companies, which process over 50 million transactions each year, to the same regulations as traditional banks and credit unions. The CFPB estimates the most popular apps handle over 13 billion transactions yearly, making this a significant move towards consumer protection in the digital finance space.
The CFPB aims to ensure these platforms adhere to federal laws regarding privacy, fraud prevention, and account closures. This expanded oversight reflects the growing importance of digital payments in today's economy.
The rule goes into effect 30 days after being published in the Federal Register.
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