Tech giants and companies processing over 13 billion digital wallet and payment app transactions annually will face government oversight, multiple media firms reported on Thursday, citing the US Consumer Financial Protection Bureau.
The ruling will govern digital services such as Apple Wallet (AAPL), Google Pay (GOOGL) and Venmo.
The new rule brings a burgeoning consumer service under the same scrutiny faced by banks while helping protect the privacy of vast amounts of consumer data and preventing fraud and the illegal closure of their accounts.
The reports said that the finalized rule applies to firms handling at least 50 million annual transactions, up from the initially proposed 5 million, and will cover only US dollar transactions.
They added that the rule takes effect 30 days after publication in the Federal Register.
Comments