CFPB Pushes for Regulatory Oversight on Payment Solutions and Digital Wallet Giants in the U.S.

The Consumer Financial Protection Bureau (CFPB) has suggested implementing bank-style regulations on digital payment systems and mobile wallet services offered by technology giants. This initiative would impact roughly 17 firms, collectively responsible for over 13 billion transactions each year. Alphabet , Apple , PayPal , and Block’s CashApp The CFPB argues that these large corporations, despite their immense scale, fail to provide adequate consumer protections in comparison to conventional payment methods. Consequently, the agency plans to scrutinize the firms' privacy measures, the behavior of their executives, and their compliance with laws aimed at preventing unfair or deceptive practices.

This proposal marks a significant and much-anticipated move by the CFPB to exercise its full authority over payment services offered by Big Tech, a sector already facing criticism over issues related to privacy and competition. The CFPB pointed out that the technology sector has begun offering financial services that are typically under strict regulation.

Payments Tech Needs Financial Oversight  banking sector , requiring appropriate oversight.

The regulation would pertain to companies that process more than five million transactions each year. The CFPB believes that this regulation could enhance competition by ensuring that both traditional banks and tech firms are held to similar standards of oversight. 

The CFPB maintains that for a robust, innovative, and competitive financial services environment to flourish, consumers need to feel equally protected, regardless of the financial service provider they choose.

In the past, there have been attempts by the European Union to establish greater control over Big Tech. This was particularly evident when the French competition authority (FCA) took action against Nvidia, voicing concerns over the company’s substantial influence in the GPU market and its role in powering AI technologies and cryptocurrency mining. This intervention is part of a broader effort by European regulators to rein in the monopolistic practices of leading tech firms and foster fair competition in the technology space.

The proposal is presently in a notice-and-comment phase, expected to wrap up by early 2024. conducted a raid , please be aware that the content on this page is not intended to serve as and should not be construed as legal, tax, investment, or any form of advice. It’s crucial to only invest funds you can afford to lose and seek independent financial counsel when uncertain. For additional insights, we recommend reviewing the terms and conditions along with the help and support sections provided by the issuer or advertiser. MetaversePost is dedicated to delivering accurate, unbiased news, but market conditions can change without prior notice.

Alisa, a passionate journalist at Cryptocurrencylistings, specializes in cryptocurrency, zero-knowledge proofs, investment trends, and the vast ecosystem of Web3. With a sharp eye on emerging innovations and technologies, she provides in-depth reporting to keep readers informed and engaged in the dynamic world of digital finance.