The US Consumer Financial Protection Bureau (CFPB) has finalized a rule that will subject major digital wallet and payment app providers, including Apple Wallet, Google Pay, and Venmo, to federal oversight, Reuters reported.
The move targets a rapidly expanding sector handling over 13 billion financial transactions annually.
The new regulations aim to align digital payment platforms with the level of scrutiny imposed on traditional banks, focusing on safeguarding consumer data, preventing fraud, and addressing unauthorized account closures.
The finalized rule introduces significant modifications compared to the agency's original proposal. Notably, the threshold for inclusion has been raised, requiring companies to process at least 50 million annual transactions to fall under CFPB jurisdiction, a sharp increase from the initially proposed 5 million.
Additionally, the rule applies exclusively to US dollar transactions, excluding digital currencies and other assets initially considered for regulation.
The CFPB emphasized that its oversight will involve thorough reviews of companies’ compliance with federal laws, mirroring the monitoring long required of banks.
The rule is set to take effect 30 days after publication in the Federal Register.