On Nov. 21, 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule (Rule), pursuant to 12 U.S.C. § 5514(a)(1)(B), to establish supervisory authority over nonbank entities identified as larger participants in the general-use digital consumer payment applications market. While the CFPB already has enforcement power over digital funds transfer and payment wallet app providers, the Rule subjects “larger participants” of this market to CFPB supervisory examinations, similar to banks and credit unions. The Rule will apply to companies that facilitate at least 50 million “consumer payment transactions” per year, higher than the five million threshold contemplated in the CFPB’s initial proposal, and its scope extends only to U.S.-dollar transactions (digital asset transactions are excluded).
CFPB’s Final Rule Enhancing Oversight of Large Digital Payment App Providers Goes into Effect Jan. 9 – Are You Ready?
