Yes, you’re correct. The Consumer Financial Protection Bureau (CFPB) has recently announced that it will start to supervise digital payment firms, including platforms like Apple Pay and Cash App, more directly.
This step is said to be a part of modifying its rules under the Dodd-Frank Act (a financial reform law) to expand its jurisdiction to include the largest payment firms operating in the United States. The main aim behind this move is consumer protection and to ensure these companies comply with federal consumer financial laws.
The CFPB’s decision comes amid the rapid growth of digital payment platforms and the rise in the use of these services by consumers, particularly during the pandemic. The move will involve CFPB conducting examinations of these platforms and taking enforcement actions whenever necessary.
By doing this, the CFPB intends to maintain transparency, security, and fair treatment to consumers using these digital payment platforms. It’s also hoped that the step will help mitigate potential issues like unauthorized transactions and data breaches.
