Starting in 2025, Apple and Google will be supervised like traditional banks by the US Consumer Financial Protection Bureau (CFPB). A logical move, given that Apple Pay and Google Pay are now essential parts of the global banking industry.
Apple Pay under close surveillance in the United States
The Consumer Financial Protection Bureau (CFPB) in the United States will now regulate digital payment services like Apple Pay and Google Pay. This regulation applies to companies handling more than 50 million transactions per year. It aims to strengthen data protection, prevent fraud and regulate the closure of accounts.
The new rules, modified since they were proposed in November 2023, will take effect 30 days after their official publication in the Federal Register. The CFPB, however, had to make concessions, notably on the number of transactions necessary to be affected by the new surveillance system. Initially set at 5 million transactions per year, this threshold was raised to 50 million. Many companies will escape this, but this will not be the case for the two giants, Apple and Google.
Statement from CFPB Director Rohit Chopra:
The Consumer Financial Protection Bureau (CFPB) today finalized a rule to oversee the largest non-bank companies offering digital money transfer and payment wallet applications.
The rule will help the CFPB ensure that these companies – particularly those processing more than 50 million transactions per year – follow federal law, just like large banks, credit unions and other financial institutions already supervised by the CFPB.
Digital payments have gone from novelty to necessity and our oversight must reflect this reality. This rule will help protect consumer privacy, prevent fraud, and prevent illegal account closures.
Supervision is a critical tool for the CFPB to quickly identify potential risks in this market, particularly outages and other issues that could deprive millions of consumers of access to their funds. This organization is also responsible for the recent $89 million fine imposed on Apple and Goldman Sachs for mismanagement of their clients.
