The US consumer watchdog will treat new payment apps like old bank accounts

The Consumer Financial Protection Bureau (CFPB) is clarifying that rules for electronic fund transfers also apply to new payment apps. This means companies offering services like digital wallets or peer-to-peer payments must follow the same consumer protection laws as traditional banks.

For years, new payment apps operated in a gray area, often without the same consumer protections as bank accounts. This proposed rule means that if you use a payment app for personal spending, you get the same legal rights and protections as if you used a debit card. It levels the playing field for consumer liability, error resolution, and unauthorized transactions across all digital payment methods.