CFPB to Oversee Wallet / Payment Apps

The Consumer Financial Protection Bureau (CFPB) today finalized a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps, including Google and Apple tap-to-pay services. The CFPB will monitor companies handling more than 50 million transactions per year for compliance with federal law in three key areas: Privacy and Surveillance, Errors and Fraud, and Debanking. Affected companies will be required to make clear their data protection practices and provide adequate opt-outs for certain data collection and sharing practices. Affected companies must also properly investigate and address incorrect or fraudulent transactions. Finally, consumers will have protections against losing access to these services arbitrarily or without notice.