CFPB Proposes Supervisory Powers over Large Providers of Digital Wallets and Payment Apps

  • The CFPB proposed a new rule that would give it supervisory powers over larger participants in the market for general-use digital consumer payment apps, such as digital wallets and person-to-person payment apps.
  • The proposed rule would allow the CFPB to ensure that certain non-bank financial companies that provide consumer payment apps comply with the Consumer Financial Protection Act (CFPA), which banks and credit unions must comply with. The rule would be the sixth in a series of CFPB rulemakings to define larger participants in markets for consumer financial products and services.
  • Comments on the proposed rule may be submitted until January 8, 2024.