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ARTICLE · 13 NOVEMBER 2023

CFPB Wants To Oversee Large Nonbank Digital Payment Providers

K&L Gates
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Yesterday the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) that, according to the agency, aims to "crack down on [fintech] regulatory arbitrage by ensuring large technology firms...

United StatesTechnology
Jeremy M. McLaughlin
Jeremy M. McLaughlin
Joshua Durham
Joshua Durham

Yesterday the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) that, according to the agency, aims to "crack down on [fintech] regulatory arbitrage by ensuring large technology firms and other nonbank payment providers are subjected to appropriate oversight."

The proposed rule would subject large nonbank digital consumer payment companies to the CFPB's supervisory oversight. Specifically, the new rule would define an additional market the CFPB will oversee: the "general-use digital consumer payment applications market." It would cover "providers of funds transfer and wallet functionalities through digital applications for consumers' general use in making payments to other persons for personal, family, or household purposes."

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