SAN ANTONIO – The Consumer Financial Protection Bureau (CFPB) has finalized a new rule introducing federal oversight for major digital payment apps like Venmo, Cash App, and PayPal.
The rule, announced Thursday, is designed to protect personal data, reduce fraud, and prevent illegal practices like “debanking,” where accounts are closed or frozen without notice.
The regulation applies to nonbank companies that process more than 50 million transactions annually, targeting the largest platforms in this booming sector.
These apps handle more than 13 billion transactions in the U.S. annually, the CFPB said.
Oversight to address privacy, fraud, and access
CFPB director Rohit Chopra emphasized the importance of regulating platforms that have become critical to daily life.
“Digital payments have gone from novelty to necessity, and our oversight must reflect this reality,” Chopra stated.
The CFPB said the rule focuses on three primary areas:
Why it matters
Digital payment apps, often owned by major tech firms, are widely used for everything from splitting restaurant bills to …