The Consumer Financial Protection Bureau (CFPB) has issued a final rule to identify larger participants in the market for digital consumer payment apps, like digital wallets and payment apps used for personal payments. A nonbank must manage at least 50 million transactions annually and not be a small business to qualify as a larger participant and fall under CFPB supervision. This new rule, effective January 9, 2025, will not add new consumer protection obligations but will help the CFPB monitor compliance with federal consumer financial laws and assess risks to consumers. The rule follows a public comment phase and consultation with other federal agencies.
Simple Explanation
The government made a new rule to keep an eye on big companies that help people pay for things online, like apps for sending money to friends. If these companies handle a lot of payments (50 million or more a year), they have to follow certain rules to make sure they're doing everything right.