Contact: Laine Williams, (202) 897-4757, [email protected]
Washington, DC, November 21, 2024 – The Financial Data and Technology Association of North America (FDATA), a trade association representing more than three dozen financial technology and open finance companies, today expressed disappointment with the Consumer Financial Protection Bureau’s (“CFPB” or “Bureau”) final Rule Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications, which failed to differentiate between digital wallet providers that hold consumer assets and platforms that merely store other payment methods.
Steve Boms, Executive Director of FDATA, released the following statement:
“While FDATA supports the Bureau’s efforts to enhance consumer protection and promote financial transparency, we are disappointed that the CFPB failed to appropriately tailor its payments larger participant rule to capture only those digital wallets that actually hold consumer funds. The Bureau’s decision to include payment facilitators as covered entities under the LPR, despite the U.S. District Court’s ruling in PayPal v. CFPB, introduces significant additional compliance costs to a host of non-bank payment platforms without offering additional commensurate consumer benefits.
We are concerned that today’s rule could limit competition in the payments marketplace, where digital platforms have offered low-cost, efficient pay-by-bank options that reduce transaction fees. Subjecting these entities to the same regulatory requirements as digital wallets that actually hold consumer funds could stifle innovation and reduce the availability of more affordable payment options. We look forward to continuing to work with the CFPB on this important issue.”