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    Major technology companies reject proposed US consumer watchdog oversight of digital wallets

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    digital wallets

    The US monitoring institution’s plan to monitor companies like Apple (AAPL.O) and Alphabet’s Google (GOOGL.O) that provide digital wallets and payments apps pushing some players out of the market, their lobby group said on Monday.

    Computer and Communications Industry Association (CCIA) – among which members of Amazon (AMZNO), Facebook Parent Meta (META O) and X, previously known as Twitter, were responded to a proposal by the American consumer in November. The Financial Security Bureau (CFPB), which said that technical giants’ smartphone payments and wallet services are rivals to traditional payment methods but lacks consumer security measures.

    digital wallets

    The CFPB proposal, which has not been finalised yet, shall subject to a similar surveillance to companies which are currently imposed on banks in which Agency testers inspect compliance with laws on improper or misleading practices and privacy security, as well as investigating the conduct of officers.

    Officers expect the proposal, as currently written, will cover 17 companies responsible for paying 13 billion annually.

    Some bank industry representatives have warmly responded to the proposal, saying companies that provide services like bank should be regulated and direct supervision like banks.

    However, CCIA’s regulatory policy chief Criszatian Katona said in a statement reviewed by Reuters that this proposal has a risk of more loss than the advantages as wider, highly cumulative or heavy-filled digital regulation could significantly impede new startups in this industry. “

    In a comment letter handed over to the CFPB, reviewed by Reuters, the CCIA said the CFPB’s proposal had failed to identify specific risks for consumers that he had sought to address and saw non-bank digital providers and banks inappropriate as direct competitors.

    digital wallets

    The letter said, even if there are some examples where banks and non-bank institutions compete, the reality of the market shows that there are more examples where their palette helps consumers provide supplemental services. “

    In a separate comment letter released on Monday, the Financial Technology Association, the members of which include PayPal (PYPL.O), owning the Wenmo service, and Block Inc. (SQN), which operates the Cash App, shared similar concerns.

    It said that the current rules were sufficient and called for the CFPB to suspend the process of making rules.

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