CFPB Will Treat Payment Apps Like Banks [Video]

The government’s banking watchdog plans to keep a closer eye on payment apps like Venmo and PayPal from now on.

The Consumer Financial Protection Bureau (CFPB), which regulates consumer financial services, finalized a rule Thursday allowing the agency to regularly inspect fintech companies just like it does with banks and credit unions. The rule will apply to the biggest players in the payment business, covering those that process 50 million transactions per day or more.

Under the new rule, CFPB inspectors can visit fintech companies, interview employees, and review documents to ensure they are following rules regarding consumer privacy, fraud, and closing customers’ accounts.

“Digital payments have gone from novelty to necessity, and our oversight must reflect this reality,”  CFPB Director Rohit Chopra said in a press release. “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.” 

Major digital payment companies include Apple (AAPL), Google (GOOG, GOOGL), Amazon (…