(Dec. 3, 2021) CFPB’s inquiry into “big tech” payment platforms is the topic of the latest summary to be published by NASCUS, just this week. Like all summaries, it is available to members only.
In October, the bureau issued a request for comments (due on Monday, Dec. 6) into the business practices of six large technology firms operating payments systems in the United States. In issuing the comment request, the bureau said it wants to better understand how the firms use personal payments data and manage data access to users so the bureau can ensure adequate consumer protection.
On Oct. 21, the bureau had announced it had ordered the six tech firms – Google, Apple, Facebook, Amazon, Square, and PayPal – to provide information about their payments-related products, plans and practices in the period from Jan. 1, 2019, through Sept. 30, 2021. The bureau said it will also study the practices of the Chinese tech giants that offer payments services, such as WeChat Pay and Alipay.
CFPB Director Chopra, in a statement Oct. 21, said the inquiry will help inform regulators and policymakers about the future of the payments system. “Importantly, it will also yield insights that may help the CFPB to implement other statutory responsibilities, including any potential rulemaking under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act,” he said. Section 1033 addresses consumer access to financial records.
Dec. 15 is the deadline for the six tech firms to respond to the orders, according to an “example” of the order the agency provided with its Oct. 21 announcement.