The US Consumer Financial Protection Bureau (CFPB) is no longer regulating just banks, now supervising Apple and other companies offering digital wallets and payment apps. It will focus on companies that handle over 50 million transactions per year and ensure they have “the authority to conduct proactive examinations to ensure companies are complying with the law in these and other areas,” the bureau said in a statement. “Supervision also is an important tool for the CFPB to assess risks that can emerge rapidly in this market, including from outages and other issues that could lead to millions of consumers losing access to their funds.”
The CFPB will supervise Apple Pay, Google Pay, Venmo and others in the areas of privacy and surveillance, debanking (losing access to their app without notice) and errors and fraud. This could provide more options for opting out of data collection and restricting them from misrepresenting their data protection practices, among other regulations. “Digital payments have gone from novelty to necessity and our oversight must reflect this reality. The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures,” said CFPB Director Rohit Chopra. In October, the CFPB fined Apple and Goldman Sachs $89 million over misleading customers and not following through with disputed transactions on the Apple Card.
The CFPB originally proposed this setup in November 2023, but the final policies have changed. Most notably, businesses originally had to process just five million transactions, rather than the 50 million. It also reduced the number to just count US dollars, rather than a wider scope. The supervision will go into effect 30 days following the Federal Register publication.
