CFPB Report Highlights Role of Big Tech Firms in Mobile Payments
On September 7, 2023, the Consumer Financial Protection Bureau (CFPB) published a new issue spotlight highlighting the impacts of Big Tech companies’ policies and practices that govern tap-to-pay on mobile devices like smartphones and watches. Apple currently forbids banks and payment apps from accessing the tap-to-pay functionality on Apple iOS devices and imposes fees through Apple Pay. Google’s Android operating system does not currently have such a policy. The issue spotlight explains how regulations imposed by mobile operating systems can have a significant impact on innovation, consumer choice, and the growth of open and decentralized banking and payments in the U.S.
The CFPB Director Rohit Chopra notes that his agency is “carefully evaluating Big Tech’s role in [the U.S] banking and payments system” as “regulations imposed by Big Tech firms have a big impact on whether consumers and businesses can make payments using third-party apps”.
The spotlight is part of the CFPB’s broader effort to monitor the shift to open banking in the U.S., including trends in consumer payments and the introduction of multi-service super apps into this space.
https://www.consumerfinance.gov/about-us/newsroom/cfpb-report-highlights-role-of-big-tech-firms-in-mobile-payments/?utm_source=newsletter&utm_medium=email&utm_campaign=general_updates&utm_term=9.8.23
