Apps such as PayPal, Apple Pay, and Cash App should be handled more like banks.
Certain digital services may seem and look like banks, but they are not banks. For example, they may abruptly terminate your account. could be challenging to get in touch with when you wish to contest fraud.
This is set to change, as the U.S. Consumer Financial Protection Bureau (CFPB) has decided that any digital businesses that process a large volume of transactions ought to be governed similarly to banks. The government agency will be given broader authority to deal with fraudulent activity, erroneous transactions, data privacy, and other issues.
Who will be impacted by the new regulation? Many businesses, as the CFPB targets money transfer apps and payment wallets that process over 50 million transactions annually. This implies Venmo, PayPal, Google Pay, Apple Pay, and Cash App.
Despite being a big move, the CFPB has chosen to restrict the new rule’s application to transactions made in USD, so it won’t completely eradicate cryptocurrency scams on social media.
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