CFBP proposal to regulate mobile payments would hurt innovation, says CCIA

A US lobby group representing a number of Big Tech firms has said that plans to regulate tech companies that provide digital wallets and payments apps under a financial watchdog would stifle innovation.

The Computer & Communications Industry Association (CCIA) published a statement on Monday responding to a November proposal by the US Consumer Financial Protection Bureau (CFPB) which said that smartphone payments and wallets services like Apple Pay and Google Pay provide competition for traditional payment methods but lack the consumer safeguards to which traditional players must adhere.

While yet to be finalised, the CFPB proposal would subject companies like Apple, Amazon, Google, Meta and others to the same supervision imposed on banks. This would include routine examination of compliance of unfair practices and privacy protections, while also putting the conduct of executives under the microscope.

In its current form, the proposal would cover 17 firms who are responsible for 13 billion payments annually.

While some bank industry representatives have welcomed the proposal, Krisztian Katona, head of regulatory policy at the CCIA, has said: “It’s worth keeping in mind as the CFPB considers further regulations on digital services that consumer feedback seems to point towards a general satisfaction with payment services, which suggests the absence of a market failure in the sector.

“We would urge regulators to tailor new regulations to specific problems they want to fix as broad, overly burdensome or heavy-handed digital regulation could significantly hinder new startups in this industry, and harm US innovation and economic growth.”

A separate comment letter from the Financial Technology Association has also shared similar concerns for the new proposal, stating that existing regulations are sufficient and that the rulemaking process should be suspended.



Share Story:

Recent Stories


Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.

Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Building unshakeable operational resilience in financial services
In today's rapidly evolving financial landscape, operational resilience has become a critical focus for institutions worldwide. As regulatory requirements grow more complex and cyber threats, particularly ransomware, become increasingly sophisticated, financial services providers must adapt and strengthen their defences. The intersection of compliance, technology, and security presents both challenges and opportunities.

Unleashing generative AI: A force multiplier for financial crime teams
This FStech webinar, sponsored by NICE Actimize sees industry experts examine the revolutionary impact of generative AI on financial crime operations, and provides actionable insights to enhance your compliance strategies.