Your Favorite Payment Apps May Face Federal Scrutiny

A new payment app proposal would make PayPal, Apple Pay and more abide by some of the same rules as big banks and other financial institutions.

Smartphone showing a checkmark for a payment app.
(Image credit: Guido Mieth, Getty Images)

As digital wallets and payment apps grow steadily in popularity, the Consumer Financial Protection Bureau (CFPB) proposes that they be held to the same standard of consumer protection as their more established banking counterparts.

As it stands today, apps such as PayPal, Apple Pay and Google Pay are not subject to the same regulations or, more importantly, consumer protection laws as large banks, credit unions and other financial institutions. The CFPB said its proposed rule seeks to bring more oversight of these firms and change that. 

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Jamie Feldman

Jamie Feldman is a journalist, essayist and content creator. After building a byline as a lifestyle editor for HuffPost, her articles and editorials have since appeared in Cosmopolitan, Betches, Nylon, Bustle, Parade, and Well+Good. Her journey out of credit card debt, which she chronicles on TikTok, has amassed a loyal social media following. Her story has been featured in Fortune, Business Insider and on The Today Show, NBC Nightly News, CBS News, and NPR. She is currently producing a podcast on the same topic and living in Brooklyn, New York.