CFPB to Regulate Apple Pay Like a Bank

Hey Digital Banking Fanatic!

Apple is entering a new regulatory era as the Consumer Financial Protection Bureau (CFPB) will now treat the tech giant like a traditional bank, bringing its mobile wallet services under direct oversight.

The finalized rule will affect companies processing over 50 million transactions annually - a significant increase from the initially proposed 5 million transaction threshold. The popular Apple Pay service puts the Cupertino company squarely within this new regulatory framework.

"Digital payments have gone from novelty to necessity and our oversight must reflect this reality," states Rohit Chopra, CFPB Director. Under this new framework, the CFPB will have the power to monitor and regulate Apple's policies and practices related to its mobile wallet services.

The rule extends beyond Apple to other major technology firms offering digital wallets and payment apps, provided they handle more than 50 million US dollar transactions annually.

And if you’re interested in reading a bit about what’s been happening in Digital Banking, keep scrolling! 👇 Wishing you a fantastic weekend ahead!

Cheers,

Marcel

INSIGHTS

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DIGITAL BANKING NEWS

🇺🇸 Apple will now be treated like a Bank, says US Consumer Financial Protection Bureau, finalizing a proposal from last year with several changes. The popularity of Apple Pay will now see the Cupertino company regulated by the US CFPB, a watchdog whose role is normally limited to banks and financial services companies. Discover more

🇬🇧 UK challenger bank Kroo considers offering investment products. The challenger bank has suggested that it could begin offering investment products, amid a further fall in interest rates and customers becoming less risk-averse. Read on

🇺🇸 Mastercard’s Multi-Token Network (MTN) connects to J.P. Morgan’s Kinexys Digital Payments for settlement. This collaboration enables mutual MTN and Kinexys customers to streamline B2B transactions via a single API integration. Continue reading

🇬🇧 Banking-as-a-Service will provide plumbing for half of future banking activity, says NatWest Boxed boss. George Toumbev, chief commercial officer, NatWest Boxed, talks through its proposition and some of the challenges in the market. Listen here

🇧🇷 Chainlink, Banco Inter, and Microsoft Sync Up to Power Brazil’s CBDC Pilot.  Brazil’s central bank, Banco Central do Brasil (BCB), has entered Phase 2 of its Drex CBDC pilot, aiming to enhance cross-border agricultural trade and streamline supply chain operations using blockchain and finance solutions.

🇷🇺 Russia's central banker in charge of digital payments system resigns. Olga Skorobogatova, Russia's First Deputy Governor and key figure behind the digital rouble and domestic payments system, has resigned. She joined the central bank in 2014 and played a pivotal role in the rapid digitalization of the Russian banking sector.

🇦🇺 Australian banks pilot fraud intelligence sharing network. Australia's leading banks are testing a fraud and scam intelligence-sharing network, leveraging behavioral and device-based technology from security provider BioCatch.

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🇺🇸 Shift4 has been named the payments partner for Barclays Center, handling ticketing, food, beverage, and retail transactions. The partnership aims to enhance the customer experience at one of Brooklyn's top sports and entertainment venues. Read on

🇺🇸 CFPB expands oversight of digital payments services including Apple Pay, Cash App, and PayPal. The CFPB announced it will soon supervise nonbank firms, including tech giants and payments companies with 50 million+ transactions annually. The new rule ensures these firms follow the same regulations as banks and credit unions.

🇺🇸 GTreasury, PNC Bank introduce embedded banking integration through PINACLE® Connect. Through this expanded partnership, GTreasury and PNC Bank now offer shared clients access to PNC's treasury services directly within the GTreasury platform. 

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