Hartley Charlton
The Consumer Financial Protection Bureau (CFPB) has finalized a new rule that would subject Apple Pay and other major digital wallet services to the same oversight as banks.
Today, the CFPB announced that digital payment platforms that process more than 50 million U.S. dollar transactions annually will be subject to federal oversight 30 days after publication in the Federal Register. Apple Pay is one of the most widely used digital wallets in the United States and meets that threshold.
The new rule would give the CFPB the authority to proactively review Apple Pay’s compliance with federal consumer financial laws, including privacy protections, fraud prevention, and account stability. The CFPB has highlighted privacy concerns, fraud risks, disruptions caused by account closures, and consumer protection as key areas of its oversight.
While the CFPB already had some enforcement authority over Apple Pay, it had previously relied on responding to violations or direct consumer complaints. The new provision allows for direct and ongoing scrutiny of internal operations, much like what supervised banks and credit unions face. Apple has not yet commented on the CFPB’s final rule, but it participated in the agency’s consultation process, which included input from stakeholders and fintech companies.
The CFPB’s action reflects a broader global trend toward regulating big tech companies’ involvement in financial services. European regulators have similarly scrutinized Apple Pay, including limiting the use of near-field communication (NFC) on its devices, raising antitrust concerns. In the United States, the CFPB's decision is part of an effort to ensure that tech companies offering financial services are held to the same rules as traditional institutions.
Note: Due to the political and social nature of the discussion on this topic, the thread is located in our Political News forum. All forum members and site visitors may read and follow the thread, but posting is limited to forum members with at least 100 posts.
Tags: Apple Pay, United States [ 47 comments ]
