CFA Statement in Response to CFPB Rule to Define Larger Participants in the Payment App and Digital Wallet Market

WASHINGTON, D.C. - The Consumer Federation of America released the following statement in response to the new rule issued by the Consumer Financial Protection Bureau to define larger participants in the payment app and digital wallet market. Under the rule, the CFPB will have supervisory authority over digital funds transfer and payment wallet apps conducting more than 50 million dollar-denominated transactions per year.

"By completing this rule, the CFPB has taken payment apps out of a regulatory blind spot," said Adam Rust, director of financial services for the Consumer Federation of America. "Enforcement penalizes wrongdoing, but supervision prevents problems from happening in the first place. With this new authority, the CFPB can keep an eye on Big Tech to ensure people are treated fairly when they use a payment app, just as it does already to banks and credit unions."