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The United States Consumer Financial Protection Bureau (CFPB) today proposed new oversight requirements for technology companies like Apple that offer digital wallets and payment apps.

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According to the CFPB, payment services like Apple Pay are growing in popularity, but the companies behind them are not subject to the same "supervisory examinations" that banks undergo.

The newly proposed rule would require companies that handle more than five million transactions per year to adhere to the same rules as large banks, credit unions, and other financial institutions that are supervised by the CFPB.

The CFPB claims that there have been an increasing number of complaints about tech companies in the consumer finance market, and it argues that examiners should be able to carefully scrutinize the activities of tech companies to ensure they are following the law.
Big Tech and other companies operating in consumer finance markets blur the traditional lines that have separated banking and payments from commercial activities. The CFPB has found that this blurring can put consumers at risk, especially when the same traditional banking safeguards, like deposit insurance, may not apply.

Despite their impact on consumer finance, Big Tech and other nonbank companies operating in the payments sphere do not receive the same regulatory scrutiny and oversight as banks and credit unions. While the CFPB has enforcement authority over these companies, the CFPB has not previously had, inside many of these firms, examiners carefully scrutinizing their activities to ensure they are following the law and monitoring their executives.
The CFPB wants to be able to conduct examinations of tech companies to make sure that they are following funds transfer, privacy, and consumer protection laws, and adhering to the same rules that banks must follow. If finalized, the proposed rule would give the Consumer Finance Protection Bureau more oversight into the financial services provided by companies like Apple and Google.

Article Link: U.S. Regulators Want More Control Oversight Into Apple Pay
 
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And in related news, Goldman Sachs announced today that it is terminating its GM credit card business. Guess who is not much farther down GS's list? GS has had it with consumer banking. I know that Apple Pay is not directly related to the GS credit card business, but you can see things getting much more complex for Apple in its banking and consumer finance efforts.
 
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I would like to see some examples of the consumer complaints about Apple Pay, the service when you use AW or iPhone at POS.
Don’t know what those could be
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That isn't Apple Pay.

Goldman is a regulated bank sooooooo.....
 
Apple Pay doesn't lend money.
Apple does in the case of their Apple Card Monthly Installment offering which is tied to Apple Pay (you cannot apply for an Apple Card without going through Apple Pay/Apple Wallet). That (Apple Wallet) is one of the things the CFPB proposal wants oversight over.


The Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps. Driven largely by Big Tech and other large technology firms, digital payment apps and wallets continue to grow in popularity, but many of the companies are not subject to CFPB supervisory examinations.
 
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Complaints from the banks, not the consumers more like.
It's been no secret that the banks and the incumbents hate Apple Pay and similar.
Look at the legal battle the banks in Australia put up back when Apple Pay launched.
They lost and caved.
Now the banks need some other way to claw back control or hinder Apple.
Consumer tracking is what they really miss and that was the driving force behind the Australian bank rebellion.
 
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Resolved months ago..

I move money in/out and it hits my bank in 24 hours max
 
Apparently folks can't tell the difference between a credit card, a savings account, and a payment processing platform. The article is related to the later and has absolutely nothing to do with the first two.

The complaints are likely coming from competing payment processing platforms, which may or may not be banks. I can tell you that if you process a swipe or tap transaction, you're likely paying between 2.5 - 3% in fees. With ApplePay, your fees are about 1% less....as it should be. There is likely to be much less fraud via ApplePay. I'm sure the lobbyists are hard at work. Whoever feels they are getting cut short by ApplePay is complaining.
 
Goldman is the regulated bank, not Apple. At best Apple is a marketing partner of Goldman. I'm not sure why this would implicate anything Apple is doing.
Goldman backs Apple's credit card and savings account, it has nothing to do with Apple Pay. Apple Pay is a payment system that interfaces with the major merchant services networks. The Apple Cash rewards portion is backed by Green Dot Bank.
 
That isn't Apple Pay.

Goldman is a regulated bank sooooooo.....
It's more than just Apple Pay the CFPB wants oversight over, it's Apple Wallet as that's where you find everything (Apple Pay, Apple Savings, Apple Card, Apple Card Monthly Installment, Apple Pay Later, etc.)

The CFPB proposal says "digital wallets and payment apps"

The Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps. Driven largely by Big Tech and other large technology firms, digital payment apps and wallets continue to grow in popularity, but many of the companies are not subject to CFPB supervisory examinations
 
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Still was a GS problem
 
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