{"id":2093178,"date":"2023-11-07T17:14:02","date_gmt":"2023-11-07T22:14:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets\/"},"modified":"2023-11-07T17:22:57","modified_gmt":"2023-11-07T22:22:57","slug":"us-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets\/","title":{"rendered":"US consumer watchdog proposes rules for Big Tech payments, digital wallets"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2093178&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2\" data-testid=\"Text\">By <\/span>Douglas Gillison<span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2\" data-testid=\"Text\"> and <\/span>Hannah Lang<\/p>\n<p>9:15 PM UTC \u2013 November 7, \u20622023<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>WASHINGTON \u200b(Reuters) \u2013 The top \u200bU.S. consumer financial watchdog on Tuesday \u2063proposed \u200bto regulate tech giants\u2019 digital payments and smartphone\u2063 wallet services, saying they rival traditional \u2063payment methods\u200b in scale and scope but lack consumer safeguards.<\/p>\n<p>The Consumer Financial Protection\u2063 Bureau\u2019s (CFPB) proposal would subject companies like Alphabet (GOOGL.O), Apple (AAPL.O), PayPal (PYPL.O) and \u2064Block\u2019s CashApp (SQ.N) \u2063to bank-like\u200b supervision,\u2062 with CFPB examiners inspecting their \u200dprivacy protections, executives\u2019 conduct\u200c and compliance with laws\u2062 barring unfair and deceptive practices.<\/p>\n<p>If finalized, the proposal would cover about 17 \u2063companies \u2063that together send more than 13 billion payments annually, according to a CFPB official. The agency declined to\u2064 name the other platforms that would \u2064be covered beyond GooglePay, ApplePay, PayPal and CashApp.<\/p>\n<p>Apple, PayPal and CashApp did\u200b not \u200dimmediately respond to a request for comment. Google declined to comment.<\/p>\n<p>The proposal marks a long-anticipated \u200band\u2063 ambitious move by\u2062 CFPB Director Rohit Chopra to assert the agency\u2019s full authority over\u200c Big Tech, a sector he has frequently \u200bcriticized for privacy and competition issues.<\/p>\n<p>Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry\u2064 into their payments platforms.<\/p>\n<p>In a statement on Tuesday, Chopra said the tech sector had expanded\u2062 into financial \u200cservices traditionally\u200b provided by the closely regulated banking \u2062sector.<\/p>\n<p>\u201cToday\u2019s rule would\u200b crack\u2064 down on \u2062one avenue for regulatory arbitrage\u2063 by ensuring <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptocurrency-executives-appear-before-congress-to-determine-future-of-digital-assets\/\" title=\"Cryptocurrency Executives Appear Before Congress To Determine Future Of Digital Assets\">large technology firms<\/a> and other \u200bnonbank payments companies are subjected to appropriate\u200b oversight,\u201d he \u2064said.<\/p>\n<p>In a speech last month, Chopra \u2063said CFPB research had <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets\/\" title=\"US consumer watchdog proposes rules for Big Tech payments, digital wallets\">found tech giants collected vast \u200camounts<\/a> of consumer payments data with few limits, scant transparency and confusing\u2062 corporate policies, putting\u2064 consumers at risk of Chinese-style surveillance by the companies.<\/p>\n<p>Speaking\u200d about Tuesday\u2019s proposal, senior CFPB officials said it\u2062 was imperative to look into privacy compliance \u200dat these larger\u200c firms with a wealth of consumer data, noting that many of their business \u2062models focus on \u200dmonetizing that data.<\/p>\n<p>Representatives of Big Tech companies have previously highlighted their efforts\u200d to protect \u200cconsumer data.<\/p>\n<p>Tuesday\u2019s proposal would apply to companies handling more than \u2062five million transactions \u200ba year. The \u2064agency said \u2064the rule would also\u2062 foster competition by ensuring that both traditional financial players\u200c and the \u200btech sector were equally subject to\u2062 the same oversight.<\/p>\n<p>In a statement, the Consumer Bankers Association called the proposal \u201ca step in the right direction.\u201d<\/p>\n<p>\u201cFor a healthy, innovative, and competitive financial services ecosystem to function, consumers\u200c need to know that they are\u200d protected equally, regardless of \u200bwho they do business with to meet their financial needs,\u201d said CBA President and CEO Lindsey Johnson.<\/p>\n<p>The Electronic Transactions Association, representing\u2064 banks, fintechs and \u2064big tech companies, said in a statement \u2064it \u2064wants \u201cto\u2062 ensure the proposal achieves the goals of consumer protection \u200cand\u200b consistent application\u2063 of public policy for all\u200c players.\u201d<\/p>\n<p>The proposal is now subject to a notice-and-comment period expected\u200d to end in\u2064 early 2024.<\/p>\n<p>Reporting by Douglas Gillison and Hannah\u2064 Lang in\u2062 Washington; Additional reporting by \u2062Chris Prentice in New York; Editing by Matthew Lewis, Mark Potter and David Gregorio<\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\tShare this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Senators Lindsey Graham and Richard Blumenthal urge Iran \u200cto stay out of the Israel-Hamas war while asking Israel to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russia-says-it-is-ready-to-stop-invasion-in-a-moment-if-ukraine-meets-conditions\/\" title=\"Russia Says It Is Ready To Stop Invasion \u2018In A Moment\u2019 If Ukraine Meets Conditions\">halt military operations<\/a>.\u2062 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Former\u2064 DEI Dr. \u200bTabia Lee, \u200djoined One\u2063 America\u2019s\u2063 Stella\u2062 Escobedo to talk about how diversity, equity and inclusion is fueling Jew\u2064 hatred on school campuses across the nation.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>New\u200b York voters will decide of a variety of races and\u2063 ballot questions in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-republicans-qualify-for-miami-gop-debate\/\" title=\"5 Republicans Qualify For Miami GOP Debate\">general elections held<\/a> across the nation today. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>While the Biden \u200bAdministration continues exploring\u200c multiple \u2018humanitarian pauses\u2019 with the \u200dwar in Israel, One\u200d America\u2019s Chief White House Correspondent Monica Paige speaks with a combat veteran on\u200b why this approach may incentivize more hostage\u2064 situations.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>US watchdog\u200c proposes rules for Big Tech payments and digital wallets, aiming for consumer safeguards.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Thousands volunteer\u2064 for Elon Musk\u2019s Neuralink microchip brain implant study.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>EU introduces rules \u2064for Big Tech: clear labels for political ads, funding,\u2062 election targets before\u200c key votes.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Britain will \u200dmake the \u2062makers of self-driving\u200b cars legally liable for any crashes under \u200ba framework \u2063for \u2063developing autonomous vehicles.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> How will the proposed regulations impact the digital payments and smartphone wallet services provided by tech giants such as Alphabet, Apple, PayPal, and CashApp?<\/h2>\n<p><span>  The Impact of Proposed\u200d Regulations on Tech Giants&#8217; Digital Payments and Smartphone Wallet\u2063 Services<\/p>\n<p>In a recent development, the Consumer Financial Protection Bureau \u200b(CFPB) has proposed regulations aimed at overseeing the \u200bdigital payments\u200d and smartphone wallet\u200b services \u200bprovided by tech giants. The\u200d CFPB argues that these services have grown to rival traditional payment methods in \u200cscale and scope but lack adequate consumer safeguards. The proposed regulations would subject companies like Alphabet,\u200b Apple, PayPal, and\u2062 CashApp to bank-like supervision, with CFPB examiners inspecting their\u200d privacy\u2063 protections, executives&#8217; conduct, and compliance with \u200blaws prohibiting \u200dunfair and deceptive\u2064 practices.<\/p>\n<p>If finalized, the proposal would cover approximately\u2062 17 companies that collectively send over 13 billion payments annually.\u2064 While the \u2063CFPB \u200bdid not disclose the names of \u2063the\u200d other platforms that would be covered, it explicitly mentioned GooglePay, ApplePay, PayPal, and CashApp. The response from the companies affected by the proposal has been mixed, with Apple, PayPal, and CashApp\u2064 refraining from immediate comment and Google declining to comment altogether.<\/p>\n<p>This proposal by CFPB Director Rohit\u2064 Chopra represents \u200ca \u200dsignificant move \u200cto assert the agency&#8217;s authority over Big Tech, a sector that has\u2062 been criticized for privacy and competition issues. Since assuming the role of director in \u200c2021, Chopra has progressively increased the scrutiny of the tech sector, seeking \u2062information on how companies use consumer data and launching an inquiry into their payments platforms. According \u2064to Chopra, the tech sector has expanded its presence \u200bin financial services \u2063traditionally provided \u200dby closely regulated banks.<\/p>\n<p>The proposed regulations \u200daim to tackle regulatory arbitrage and ensure that large technology firms and nonbank payments companies are subjected to appropriate oversight. In a speech last \u2064month,\u2064 Chopra highlighted concerns \u2063about tech giants collecting vast amounts of consumer payment data with limited\u200b transparency and \u200bconfusing corporate policies, thereby putting consumers at risk of surveillance. \u2064CFPB officials \u2063emphasized the need to look into privacy compliance at these larger firms that possess substantial consumer \u200bdata, as many\u2062 of their business\u200d models revolve around monetizing that data.<\/p>\n<p>The\u2063 proposed regulations would apply to companies \u2062processing more\u200c than \u200bfive million transactions per year, promoting competition by ensuring equal oversight for\u200c both traditional financial players and the \u200dtech sector. The Consumer Bankers Association praised the proposal as a step in the right direction, emphasizing the importance \u2063of equal consumer protection regardless of the business entity involved. The Electronic Transactions\u200b Association, representing banks, fintechs, \u200band big tech companies, expressed a\u2064 desire for the proposal to achieve the goals of consumer protection and consistent application of public policy for all players.<\/p>\n<p>While the proposal is currently open to a notice-and-comment period, which is expected to conclude\u200c in early 2024, it serves as \u200da significant indication of the CFPB&#8217;s intent to regulate tech giants&#8217; digital payments and smartphone wallet services more comprehensively. It remains to be seen how the proposal will evolve\u2064 during the comment period and whether any amendments\u200c will be \u2063made based on feedback from stakeholders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Douglas Gillison\u00a0and\u00a0Hannah Lang 9:15 PM UTC \u2013 November 7, 2023 Advertisement WASHINGTON (Reuters) \u2013 The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants\u2019 digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. The Consumer Financial Protection Bureau\u2019s (CFPB) proposal would<\/p>\n","protected":false},"author":1911,"featured_media":2093179,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2093178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2093178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2093178"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2093178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2093179"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2093178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2093178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2093178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}