September 08, 2023

CFPB releases report on big tech in mobile payments

CFPBThe CFPB Thursday released a report highlighting the impact Apple and Google have on the mobile payment ecosystem. According to the report, “restrictions imposed by the dominant operating systems – Apple’s iOS operating system and Google’s Android operating system – will have an outsized effect on access to payments systems and may hinder the development of a truly open ecosystem.”

The CFPB added that it will continue to take steps to ensure Apple, Google, and other large tech companies “do not impede the development of open ecosystems for digital payments.” Additionally, the bureau noted it will assess roadblocks, drive competition, and promote consumer benefits.

The bureau closed the report by claiming that open banking has created many consumer financial products and services that compete with traditional banking services, adding the products “could benefit from access to NFC functionality and simultaneously compete with dominant mobile wallets and the card networks by facilitating low-cost ACH payments powered by open banking.”

Of note, NAFCU wrote to the CFPB in response to the bureau’s request for comment on this issue. In the letter, the association called on the bureau to use its larger participants authority to place big tech companies offering payment platforms under their supervision.

NAFCU will continue to engage the bureau and fight for a level playing field.