Public comments on a proposed rule subjecting larger nonbank companies that offer digital payment apps and wallets will be accepted by the Consumer Financial Protection Bureau (CFPB) through Jan. 8, according to a notice in the Federal Register.
The CFPB proposal, issued in early November, would apply to firms handling payments via apps such as Apple Pay and Google Pay. If approved as proposed, it would require nonbank financial companies handling more than 5 million transactions each year to adhere to the same rules as large banks, credit unions, and other financial institutions already supervised by the bureau, the agency said in its announcement Nov. 7.
The bureau said its proposed rule would subject larger nonbank digital consumer payment companies to the CFPB’s authority to conduct examinations. That includes, the agency said, requiring the firms to adhere to applicable funds transfer, privacy, and other consumer protection laws and to “play by the same rules as banks and credit unions,” which the agency said can “foster a level playing field with depository institutions.”
Reg Lookup: Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications