CFPB Finalizes Rule to Regulate Big Tech Payment Apps Like Banks

The new regulation subjects major digital payment platforms to federal supervision, focusing on privacy, fraud prevention, and consumer protections.

The Consumer Financial Protection Bureau (CFPB) will now oversee digital payment apps that process over 50 million transactions annually, including Apple Pay, Google Pay, PayPal, Venmo, and Zelle.
The rule aims to address growing consumer reliance on digital wallets, ensuring compliance with federal laws similar to those governing banks and credit unions.
Key areas of supervision include protecting consumer privacy, preventing fraud, and addressing account closures without notice, commonly referred to as 'debanking.'
The finalized rule significantly raises the transaction threshold for oversight from 5 million to 50 million annual transactions and limits its scope to U.S. dollar payments.
The rule will take effect 30 days after publication in the Federal Register, though its long-term enforcement may face uncertainty under the incoming administration.