CFPB launches public consultation on protection of digital payments

The Consumer Financial Protection Bureau (CFPB) the US is currently working to change legislation as the payments and financial services market evolves. Among these developments is the integration of new actors and new offers. However, the PSCB has just launched a public consultation on the expectations of key stakeholders on digital payments.

FACTS

• The Commission has therefore just sought feedback from consumers on the sensitive issue of the confidentiality and protection of digital payments.

• The objective of this consultation is, in terms, to apply existing legislation on payment services offered by alternative players to traditional financial services, GAFA and crypto-assets actors.

• Various specific topics are discussed in this consultation:
  • strengthening privacy protection,
  • the prevention and monitoring of digital payments, including those proposed by GAFA,
  • pricing of services;
  • the implementation of the existing Financial Confidentiality Act,
  • data collection.

ISSUES

• Continue its efforts : The launch of this new public consultation took place only a few weeks after the Commission finalized the regulation concerning the federal oversight of 7 most popular digital payment applications, notably led by leading players such as Google, Apple, Venmo, Zelle, Amazon or Paypal.

• Awakening consciences : The CFPB points out that, according to a study by the Government Accountability Office, consumers "may be largely unaware of how FinTech applications use their personal information, and of the privacy risks associated with this use."

• Large-scale work : This consultation takes place in the margins of the efforts undertaken by the Treasury Department and financial regulators to determine how to apply the existing law to stables.

PERSPECTIVE

• The Commission's clear position on the issue of GAFA is necessary in the face of the increased risks associated with the increase in the supply of alternative players, which echoes the growth of shadow banking. The latter refers to all unregulated activities and financial actors such as traditional banks, but which provide similar services, including credit or fund management offers.

• In its last report published at the end of 2024, the Financial Stability Board (FSB), an international economic grouping from the G20, has underlined the acceleration of non-bank finance.

Traduit automatiquement via Libretranslate / Automatically translated via Libretranslate