CFPB Lays Out Consumer Protection Principles For New Payment Systems

Earlier today, the Consumer Financial Protection Bureau ("CFPB") released a series of consumer protection principles for the development of new payment systems ("Principles"). The CFPB's stated purpose in releasing the Principles is to ensure that consumer interests remain top of mind throughout system development. According to the CFPB, the Principles are based on the CFPB's experience in advocating for the development of faster and safer consumer payment capabilities, participation in the Federal Reserve's FedPayments Improvement initiative, and general engagement with payment system stakeholders.

The Principles, summarized below, are not prescriptive. Instead, the CFPB expressly acknowledges that there are myriad ways to incorporate the Principles in system development.