Apple Pay has been so successful that it has caught the attention of bank and financial services regulators in the United States. The US Consumer Financial Protection Bureau (CFPB) will have the power to monitor and regulate Apple’s policies and practices when it comes to its mobile payments system.
More than 60% of the U.S. population uses a mobile wallet, with Apple Pay the top choice.
The CFPB is a United States government agency responsible for enforcing federal consumer financial law. The bureau also serves a broader role as a regulator, intended to ensure that consumer financial products are “fair, transparent, and competitive.”
We aim to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. We arm people with the information, steps, and tools that they need to make smart financial decisions.
While the CFPB has always been allowed to keep an eye on Apple Pay and its competitors, like Google Pay, but last year, it proposed that these payment systems be viewed a much more like banks, granting the CFPB broader powers when it comes to fairness and deal with consumer complaints.
Bloomberg reports that the proposal has been approved and finalized, and will take effect from next month.
The top US consumer watchdog will supervise Apple Inc. and other major technology firms that offer digital wallets and payment apps, finalizing a proposal from last year with several changes.
The US Consumer Financial Protection Bureau will now treat those companies more like banks as long as they handle more than 50 million transactions a year, conducted in US dollars, according to a statement Thursday.
“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” CFPB Director Rohit Choprasaid in the statement.
