CFPB proposes new oversight of big tech companies and other providers of digital wallets and payment apps

The Consumer Financial Protection Bureau is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps. The CFPB explains: “Driven largely by Big Tech and other large technology firms, digital payment apps and wallets continue to grow in popularity, but many of the companies are not subject to CFPB supervisory examinations. The rule proposed [on Tuesday] would ensure that these nonbank financial companies – specifically those larger companies handling more than 5 million transactions per year – adhere to the same rules as large banks, credit unions, and other financial institutions already supervised by the CFPB.” Specifically, the proposed rule aims to ensure these large nonbank companies adhere to applicable “funds transfer, privacy, and other consumer protection laws and “play by the same rules as banks and credit unions.” The comment period is open until early January.

The proposed rule is here. The CFPB’s press release is here.

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