Tech Giants Express Concerns Over Stricter Oversight for Digital Wallets and Payment Apps

A coalition of major tech companies, including Apple, Google, Amazon, Meta, and X (formerly Twitter), voiced worries about a proposed plan from the US Consumer Financial Protection Bureau (CFPB). The plan aims to increase supervision of companies providing digital wallets and payment apps.

The Computer & Communications Industry Association (CCIA), representing the tech group, fears that the CFPB’s proposal might impede innovation and limit entry for new players in the market. The plan suggests subjecting these tech firms to the same level of oversight as traditional banks, covering compliance with consumer protection, privacy, and fair practice laws. Currently, under review, the proposal could impact 17 companies handling 13 billion payments yearly.

Krisztian Katona, the CCIA’s head of regulatory policy, cautioned against overly strict regulations, suggesting they could hinder startups in the industry. He emphasized that the proposal might have negative consequences.

In a critique letter, the CCIA argued that the CFPB’s proposal lacks specificity regarding consumer risks and unfairly treats non-bank digital providers and banks as direct competitors. The Financial Technology Association, representing PayPal and Block Inc, shared similar concerns in a separate letter, stating that existing regulations are adequate and calling for a pause in the rulemaking process.