In a move of unprecedented significance, the Consumer Financial Protection Bureau (CFPB) has set its sights on major digital wallet providers and payment app creators. The agency’s audacious proposal would extend its regulatory tentacles to directly supervise payment platforms used by tech behemoths, such as Google and Apple.
A Paradigm Shift in Oversight
Under this groundbreaking proposal, nonbank payment providers responsible for processing more than 5 million transactions annually would come under the vigilant purview of routine CFPB compliance examinations. This expansion of authority mirrors the agency’s existing practices with more substantial banks and numerous nonbank entities operating in pivotal consumer markets, including mortgage lending and credit reporting.
CFPB To Supervise Big Tech’s Payment Apps : A Gargantuan Impact
The CFPB anticipates that approximately 17 companies will fall under the proposal’s ambit, companies responsible for a staggering 13 billion annual transactions. Among these heavyweights are industry titans like Google, Apple, PayPal, and Block, the mastermind behind the renowned Cash App.
