United States of America: Issued CFPB Analysis of Mobile Device Operating Systems and Tap-to-Pay Practices

On 7 September 2023, the Consumer Financial Protection Bureau (CFPB) issued its analysis of mobile device operating systems and tap-to-pay practices. The CFPB states that open ecosystems, including contactless payments, are critical for consumer choice and interoperability. The CFPB noted that technology companies, in particular Apple and Google, have a dominant position in the sector and are possibly hindering an open ecosystem. The CFPB mentions near-field communication (NFC) technology as the most popular option and distinguishes between Apple's operating system, which does not allow for any other NFC payment applications other than Apple Pay, and Google's Android, which does not restrict other financial services providers from offering apps capable of NFC payments. The CFPB concludes that these restrictions endanger choice and innovation and threaten competition in consumer finance markets.