The US Consumer Financial Protection Bureau (CFPB) has announced a new rule that will bring major digital payment apps like Apple Pay and Cash App under stringent supervision. The regulation, targeting apps processing over 50 million transactions annually, ensures they comply with federal laws concerning privacy, fraud prevention, and fair account practices.
Why Apple Pay and Cash App Are in the Spotlight
The CFPB rule holds digital payment providers accountable to the same standards as banks and credit unions. It empowers the Bureau to proactively examine these platforms, ensuring they follow federal regulations designed to protect consumer interests.
CFPB Director Rohit Chopra stated, “Digital payments have gone from novelty to necessity, and our oversight must reflect this reality. This rule will protect consumer privacy, guard against fraud, and prevent illegal account closures.”
Scope of the New Regulation
This regulation targets major payment services like Apple Pay and Cash App, which are among the apps handling over 13 billion transactions yearly. The final rule refines an earlier proposal that sought to regulate platforms with a minimum of 5 million annual transactions.
By focusing on high-transaction platforms, the CFPB aims to create stronger consumer safeguards. Enhanced oversight ensures that these services adhere to stricter standards for transparency and data protection.
Implementation Timeline and Consumer Benefits
The rule takes effect 30 days after its publication in the Federal Register. It represents a significant move toward aligning digital payment oversight with that of traditional financial institutions.
As apps like Apple Pay and Cash App continue to dominate the digital payment ecosystem, the CFPB’s rule ensures better consumer protection. With this regulation, users can expect improved privacy safeguards, fraud prevention measures, and reliable account management practices
