The Consumer Financial Protection Bureau (CFPB) is expanding its regulatory reach to include popular payment apps like Google Pay, Apple Pay, and Venmo. This move aims to protect consumer privacy, guard against fraud, and prevent illegal account closures. The new rule targets companies processing over 50 million transactions annually, giving the CFPB authority to conduct proactive examinations of these digital payment platforms.
CFPB Director Rohit Chopra stated, “Digital payments have gone from novelty to necessity and our oversight must reflect this reality.”
The rule is a refined version of a proposal first introduced in November 2023. The two notable changes include increasing the transaction threshold from 5 million to 50 million and narrowing the scope to focus specifically on U.S. dollar transactions. This is good news for consumers who use payment apps regularly.
Now, payment wallet apps will need to follow federal law just like large banks, credit unions, and other financial institutions already supervised by the CFPB. This proactive supervision can prevent harm by detecting problems early.
Cfpb expands oversight on payment apps
The new regulations promise several key protections for consumers. Users will likely gain more options to control their personal data, with increased restrictions on how payment apps can collect, use, and share their information. The rule also addresses “debanking,” the practice of closing user accounts without sufficient notice or explanation.
Additionally, the CFPB will have direct oversight to assess and address risks quickly, including technical outages that could impact millions of consumers’ access to funds. The new supervision will go into effect 30 days following publication in the Federal Register. As digital wallets and payment apps become integral to how Americans manage money, consumer protections become increasingly necessary.
The CFPB’s final rule means more transparency, better protection, and increased control over users’ digital financial experiences. While companies might view these regulations as challenging, they ultimately create a more trustworthy and secure digital financial ecosystem. Greater supervision over Big Tech means greater safety for your digital wallet.
