Statement: CFPB finalizes payment apps rule ‘to protect personal data, reduce fraud’

New rule allows bureau to supervise payment app companies like it does banks

WASHINGTON — The Consumer Financial Protection Bureau (CFPB) finalized on Thursday its digital payment apps rule for larger nonbanks that handle more than 50 million transactions per year. The rule should soon be published in the Federal Register and will be effective 30 days after publication.

The rule allows the CFPB to use its supervisory authority under the Consumer Financial Protection Act (CFPA) to ensure that large nonbanks in the funds transfer and payment wallet space (including Apple, Google, and Venmo) comply with federal funds transfer, privacy, and other consumer protection laws. The CFPB already supervises large banks and credit unions.

In response, U.S. PIRG’s Consumer Campaign Director Mike Litt released the following statement:

“Consumers have encountered frustrating, sometimes financially debilitating, problems with payment apps for years. In part, that’s because of a lack of supervision over large nonbank players in the payments space. We commend the CFPB for its rule to protect payment app users and urge the bureau to implement it to catch problems early and ensure that big tech companies play by the same rules as banks and credit unions.”