CFPB finalizes rule to supervise nonbanks offering digital funds

The Consumer Financial Protection Bureau said it finalized a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps. The transaction threshold determining which companies require supervision is now higher, at 50M annual transactions. “The CFPB is particularly concerned about how digital payment apps can be used to defraud older adults and active duty servicemembers. Some popular payment apps appear to design their systems to shift disputes to banks, credit unions, and credit card companies, rather than managing them on their own,” the agency said in a statement.