The United States to regulate online ayment platforms like banks

The Consumer Financial Protection Bureau (CFPB) announced in late November 2024 that it will now oversee online payment platforms. This agency, responsible for regulating banking practices in the United States, will impose the same rules on these platforms as on traditional banks.

“Digital payments have evolved from a novelty to a necessity, and our oversight must reflect that reality. These rules will help protect consumer privacy, combat fraud, and prevent unlawful account closures,” summarized CFPB Director Rohit Chopra.

This new policy will apply to platforms processing at least $50 million in transactions annually. However, it will not cover services dedicated to a single client, such as Starbucks’ payment service. In total, the CFPB will regulate seven new entities:

Mobile payment wallets Apple Pay and Google Pay;
Platforms Amazon Pay, PayPal, and Block (formerly Square);
Peer-to-peer money transfer services Venmo (owned by PayPal) and Zelle (owned by a consortium of U.S. banks).

Organizations behind these platforms, and the broader fintech sector, have strongly criticized the decision. Traditional banks, which had been decrying unfair competition, have welcomed the move.