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The U.S. Consumer Financial Protection Bureau says it will crack down on big tech companies' payment systems like Apple Pay.
The Consumer Financial Protection Bureau (CFPB) recently fined Apple and Goldman Sachs $90 million over controversial Apple Card charges. However, it has long argued that digital wallet systems like Apple Pay should be regulated in the same way as credit cards and banks.
The CFPB has now said it will step up oversight of big tech companies, according to Reuters. While the CFPB did not name the companies, it outlined plans to oversee payment apps and platforms.
“Digital payments have gone from a novelty to a necessity, and our oversight must reflect that reality,” CFPB Director Rohit Chopra said in a statement. “The rule will help protect consumer privacy, guard against fraud, and prevent illegal account closures.”
The rule Chopra is referring to is the threshold at which tech companies whose digital wallets process more than 13 billion financial transactions a year will be subject to new oversight. The rule means Apple Pay is included, along with others like Google Pay and Venmo.
Apple has not yet responded to the announcement in the US, but the new rule is similar to one it previously objected to in Australia.
“Apple believes that the proposed expansion… would increase regulatory burdens without net public benefit, lead to… regulatory failures,” Apple said in an October 2023 statement, “and stifle the dynamic innovation that has characterized Australia’s payments system in recent years.”
The CFPB did hold a consultation process in which companies like Apple could present their arguments, and that process was originally set to end in early 2024. It’s unclear whether that has been extended or what the current timeline for the rule’s implementation is.
However, it is possible that the new oversight rule will never go into effect due to the new Trump administration. The administration has previously accused the CFPB of undue influence, and so it could still block the move.
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