The rise and rise of digital payments
That’s certainly what the CFPB thinks. “Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said Chopra. “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.”
If you think back, it wasn’t terribly long ago when the notion that Apple wanted to turn your iPhone into a wallet seemed impossibly extreme. That is no longer the case. Two years ago, researchers claimed Apple Pay had surpassed Mastercard in the dollar value of transactions made annually, making Apple Pay the world’s second most popular payment system, just behind Visa. Google’s G Play system then stood in fifth place.
The regulator explains that payment apps are now a “cornerstone” of daily commerce, with people using them daily as if they were cash. “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,” the CFPB said.