# New rules bring PayPal, Apple Pay, and Google Pay under federal oversight ## Big Tech and other large payment services will need to behave, or else… Alfonso Maruccia | November 22, 2024 New rules bring PayPal, Apple Pay, and Google Pay under federal oversight Something to look forward to: The Consumer Financial Protection Bureau, a US agency dedicated to safeguarding consumers in the financial industry, has announced new regulations targeting tech companies. As digital payments have become a core part of modern finance, service providers will now be required to follow the same rules that apply to banks and credit unions.  The agency has finalized a new rule granting it unprecedented supervisory powers over major players like PayPal, Apple Pay, Google Pay, and others. While smaller companies remain unaffected, larger providers will now be held to standards similar to those applied to traditional banks, shedding their start-up-style freedom. “Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” CFPB Director Rohit Chopra said. The new rule aims to safeguard user privacy, combat fraud, and prevent unauthorized account deletion. It applies only to companies processing more than 50 million transactions annually – far below the 13 billion transactions processed by the most popular apps each year, according to market estimates. Digital payment apps are increasingly competing with traditional methods like credit and debit cards, both for in-person and online transactions. These services have become especially popular among middle- and low-income consumers, who rely on them daily for essentials like groceries or fund transfers. Once seen as an “alternative” to cash, payment apps are now considered vital financial tools, the CFPB noted. Image Banks and credit unions serving consumers have long been subject to CFPB supervision, but tech companies have largely operated outside this regulatory framework. After “closely” monitoring market trends and consumer complaints, the agency has decided to expand its oversight into key aspects of the digital payment experience. The CFPB will now scrutinize how digital payment services handle user privacy, particularly given the vast amounts of personal data collected during transactions. Under federal law, consumers have the right to dispute incorrect or fraudulent transactions – a rule digital apps will now be required to follow. According to the CFPB, some popular apps have been designed to shift the responsibility for managing complaints onto traditional banks rather than addressing them directly, a practice the agency aims to curtail. Another pressing issue the new rule tackles is the “debanking” practice common among many payment apps. Tech companies can quickly close or freeze user accounts without prior notice, often leaving consumers in financial turmoil. To address this, the CFPB’s new powers will allow for proactive examinations, enabling the agency to assess risks and identify potential issues before they escalate.