Large companies that offer digital wallets and payment apps will now be overseen by the Consumer Financial Protection Bureau (CFPB).
The CFPB finalized a rule Thursday to bring companies handling more than 50 million transactions a year under its supervision. This will include Apple, Google, Amazon, PayPal, Block, Venmo and Zelle, according to CNBC.
“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” CFPB Director Rohit Chopra said in a statement. “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.”
The agency already had enforcement authority over these large digital payment platforms but said the new rule gives it the ability to “conduct proactive examinations to ensure companies are complying with the law.”
The CFPB noted that the platforms are particularly popular with middle- and lower-income consumers, who are using them at rates that “rival or exceed the use of cash.” The most widely used apps process more than 13 billion transactions a year combined, according to the agency.
“Digital payment apps have become a cornerstone of daily commerce, rivaling traditional payment methods like credit cards and debit cards for both online and in-store purchases,” the CFPB wrote in a press release.
“What began as a convenient alternative to cash has evolved into a critical financial tool, processing over a trillion dollars in payments between consumers and their friends, families, and businesses,” it added.