United States of America: Adopted CFPB rule on defining larger participants of a market for general-use digital consumer payment applications

On 21 November 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule on defining larger participants of a market for general-use digital consumer payment applications. The rule will come into force 30 days after publication in the Federal Register. It requires non-bank financial companies, including large technological firms and providers of digital wallets and payment applications, to follow the same regulatory standards as large banks, credit unions and other financial institutions overseen by the CFPB. The rule mandates that these companies, offering “general-use digital consumer payment applications,” comply with existing laws on fund transfers, privacy, and consumer protection. This includes adhering to protections against unfair, deceptive, and abusive acts and practices, upholding consumer rights for money transfers, and respecting privacy rights. The rule intends to facilitate equal consumer financial protection across digital and traditional financial institutions.