US government to increase oversight of Apple Pay and rival payment systems
The US Consumer Financial Protection Bureau (CFPB) has announced it will step up its supervision of Big Tech payment systems like Apple Pay. The CFPB previously fined Apple and Goldman Sachs a $90 million penalty over disputed Apple Card payments, arguing that digital wallet systems should be regulated similarly to credit cards and banks.
According to Reuters, the CFPB is planning to oversee technology firms whose digital wallets process more than 13 billion financial transactions annually. This rule will cover payment platforms like Apple Pay, Google Pay, and Venmo.
The CFPB's director Rohit Chopra said that 'digital payments have gone from novelty to necessity' and the oversight will help protect consumer privacy, guard against fraud, and prevent unlawful account closures. However, it's uncertain whether the new rule will go into effect due to potential roadblocks from the Trump administration.
