US tightens control over payment systems Big Tech: Apple Pay and others in the crosshairs

The US Consumer Financial Protection Bureau (CFPB) has announced plans to step up its oversight of the payment systems of major technology companies, including Apple Pay. The decision follows a $90 million fine imposed on Apple and Goldman Sachs over disputes related to Apple Card payments. The CFPB has long expressed the view that digital wallets like Apple Pay should be regulated on par with banking systems and credit cards.

The CFPB has long argued that digital wallets like Apple Pay should be regulated on par with banking systems and credit cards.

What’s going to change?”

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According to Reuters, the CFPB plans to apply strict controls to payment apps and platforms. While specific companies are not mentioned in the statement, the changes will affect services such as Apple Pay, Google Pay and Venmo.

Reuters

The CFPB is planning to apply strict controls to payment apps and platforms.

«Digital payments have evolved from a novelty to a necessity, and our oversight should reflect that,» said CFPB Director Rohit Chopra. – «The new rule will help protect user privacy and prevent fraud and illegal account termination.»

The new rule will help protect users’ privacy and prevent fraud and illegal account termination.

The innovation will apply to companies whose digital wallets process more than 13 billion financial transactions a year. Apple Pay and other major players fall under this rule.

Apple Pay and other major players.

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Apple’s reaction and outlook

Apple has yet to comment on the new announcement in the US. However, the company has previously opposed similar rules in Australia, arguing that it would only increase administrative burdens without any real benefit to the public and slow down innovation in the payments industry.

Apple’s response to the announcement has not yet been commented on in the US.

«Apple believes the proposed expansion… will result in additional regulatory costs, without significant societal benefit,» the company said in October 2023.

Apple said the company’s October 2023 announcement was not a good idea.

The consultation process on the new rules with industry was due to end in early 2024. However, it is unclear whether this deadline has been met and when exactly the innovations will come into force.

It is also unclear whether this deadline has been met and when exactly the innovations will come into force.

An uncertain future

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The possibility exists that the new rules will never be implemented. The Trump administration, which recently returned to power, has previously accused the CFPB of overstepping its authority. It’s likely that the initiative will be blocked.

It’s also possible that the CFPB will be blocked.

Conclusion

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CFPB is taking steps to regulate digital payment systems to adapt the laws to the reality of today’s world. However, resistance from tech giants and possible policy changes could delay implementation of the new rules.

CFPB is taking steps to regulate digital payment systems to adapt the laws to the reality of the modern world.